Barclays signs Sh1.1bn oil drilling financing deal

August 23, 2013
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The bank says the oil exploration financing deal will enable MDAL to acquire a drilling oil rig to be deployed for exploration in Kenya/FILE
The bank says the oil exploration financing deal will enable MDAL to acquire a drilling oil rig to be deployed for exploration in Kenya/FILE
NAIROBI, Kenya, Aug 23 – Barclays Bank of Kenya has signed a Sh1.1 billion financing deal with Marriott Drilling Africa Limited (MDAL), an oil drilling company.

The bank says the oil exploration financing deal will enable MDAL to acquire a drilling oil rig to be deployed for exploration in Kenya.

Commenting on the newly signed agreement, Barclays Managing Director, Jeremy Awori, termed it as a transaction which will allow the bank to move to the oil industry.

“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,” Awori said in a statement.

Apart from financing the rig acquisition process, Barclays will arrange and execute the five year financing plan in a timely move that aims to position financial intermediaries’ stake in the oil industry as focus shifts on Kenya as a potential oil producing country in the next decade.

Marriott Drilling Africa Limited’s Managing Director, Jonathan Hobday, said the deal was in line with its growth strategy to increasing its rig fleet by adding state-of-the-art equipment where opportunities arise.

“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. This financing agreement with Barclay is a catalyst to spur our business,” Hobday said.

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