Eurafric Energy Secures $109M Loan for Oil Field Development

Eurafric Energy Limited has secured a $109 million loan facility from Toronto-based Rein Capital to advance the development of the Dawes Island margin oil field. This financial boost comes after a ruling by the Federal High Court in Lagos, which reinstated Eurafric's ownership rights over the oil field, nullifying a 2020 revocation of its license.

The court, presided over by Justice O. Awogboro, declared the revocation unlawful and unjustified, stating that the Ministry of Petroleum Resources failed to follow proper procedures as outlined in the Petroleum Act.

The court's decision allows Eurafric to proceed with its development plans, targeting a production capacity of 20,000 barrels per day. The company has outlined a comprehensive development roadmap, including the drilling of five new wells.

This legal victory marks a significant step forward for Eurafric, which has proven its commitment to developing the oil field despite previous challenges.