Barclays Bank of Kenya has stepped up its asset-financing portfolio with a Sh1.13 billion ($13 million) financing deal to Marriott Drilling Africa Ltd (MDAL).
Financing an oil drilling company is a strategic move by the bank in the oil industry. This is the first oil exploration financing deal in the region to be signed by a regional bank. It will enable MDAL acquire a drilling oil rig for exploration in Kenya.
“Signing a financing agreement of this value reflects the ability and commitment of Barclays Bank to shoulder its responsibilities in financing the projects of leading companies which have a clear strategy,” said Barclays Bank Kenya Managing Director Jeremy Awori. “It is also aligned to our strategy of making Barclays the “Go-To Bank” for asset financing solutions in the market.”
Apart from financing the rig acquisition, Barclays Bank will also arrange and execute a five year financing plan.
The move is aimed at giving the bank a sound footing in the oil industry. This is as it shifts focus on Kenya as a potential oil producing country in the next decade.
“Today marks the start of a new era for us in East Africa. We believe that banks have a responsibility to assist companies like Marriott in the development of oil resources in Kenya and elsewhere in East Africa,” said Jonathan Hobday, managing director Marriott Drilling Africa.
“This financing agreement with Barclays is a catalyst to spur our business.” Barclays is among the banks that are eyeing to tap into the emerging oil and gas industry.
West African banks EcoBank and UBA are also angling for a share of the oil and gas deals in the region.
UBA bank has set up a fully-fledged oil and gas desk within its Kenyan operations.
The bank expects its immense knowledge in structuring oil and gas transactions in West Africa to give it an edge in bagging major deals in Kenya and the region.
By Macharia Kamau, The Standard
