The African Export-Import Bank (Afreximbank) in Cape Town, South Africa, has agreed to provide a US$10 million-dollar revolving trade finance facility to Dorman Long Engineering Limited to facilitate the importation of steel pipes for threading.
Under the terms of the agreement signed on the sidelines of the just-ended African Energy Week, Dorman Long Engineering Limited will utilise the proceeds of the facility for the issuance of letters of credits and standby letters of credit to facilitate the importation of the steel pipes and their onward supply to International Oil Companies (IOCs).
Structured with a tenor of three years, the transaction falls under Afreximbank’s Intra-African Engineering, Procurement and Construction (EPC) Initiative, which seeks to build up the technical and financial capacity of African EPCs to win large infrastructure and EPC projects on the continent.
The facility will also enable Dorman Long Engineering Limited to provide services to clients in other African countries, helping to overcome some of the barriers limiting Africa’s share of global export services.
Signing the agreement on behalf of Afreximbank was Mr. Peter Olowononi, Head, Client Relations (Anglophone West Africa), while Dr. Timi Austen-Peters, chairman of Dorman Long Engineering Limited, signed for the firm.
Mr. Eric Intong Monchu, Acting Group Managing Director, Client Relations, Afreximbank, commented: “Afreximbank’s commitment to supporting African businesses to increase their participation in large infrastructure and EPC projects is driven by the need to enhance the execution capacity and local value addition of businesses in the oil and gas sector. With this facility, Dorman Long Engineering Limited is better positioned to execute large infrastructure and EPC projects and contribute to addressing key energy security needs in Africa.”
Dr Timi Austen-Peters, chairman of Dorman Long Engineering Limited, commented on the agreement stating, “We are grateful to Afreximbank for their continued support and commitment to African businesses. This facility aligns perfectly with our growth strategy at Dorman Long Engineering and will enable us to deliver innovative solutions to our clients as we evolve. We are even more ready to partner in the development of Nigeria as we plan to export our skills and services, to drive economic growth and create jobs.”
Organised by the African Energy Chamber, the four-day African Energy Week, brings together African energy leaders, global investors and executives from the public and private sectors for dialogue on the future of the African energy industry. Running from 4 to 8 November, the event is featuring an interactive conference, exhibition and networking events, panel discussions, investor forums, industry summits and one-on-one meeting opportunities.
LEADERSHIP reports that Dorman Long Engineering Limited, established in Nigeria in 1949, is Nigeria’s leading Oilfield Equipment, Structural Steel and Marine Structures, Engineering, Fabrication and Construction Company. Its expertise in the entire EPC value chain includes fabrication of pressure vessels & process equipment, structural steel & marine structures, storage tanks and mobile units, asset management including greenfield development and brownfield maintenance, procurement & logistics services (Steel, Valves, and Oil & Gas Equipment), hot dip galvanising (AVM AI23/ BS EN 184 Standard), and automation stands it out.