Oando Plc has finalised the purchase of Eni’s subsidiary, Nigerian Agip Oil Company (NAOC), for $783 million. The company announced this on Thursday in a statement released by its Chief Compliance Officer and Company Secretary, Ayotola Jagun.
As part of the deal, Oando, which is listed on the Nigerian and Johannesburg Stock Exchanges, will now hold 100 per cent of the shareholding interest in NAOC, previously owned by the Italian energy company Eni.
For Oando, a prominent provider of energy solutions in Nigeria, the acquisition of Agip represents a significant achievement in its long-term strategy to broaden its upstream operations and fortify its position in the Nigerian oil and gas sector.
The acquisition leads to Oando’s present participating interests in OMLs 60, 61, 62, and 63 increasing from 20 per cent to 40 per cent. In addition, Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, comprising 40 discovered oil and gas fields, about forty identified prospects and leads, 12 production stations, roughly 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the KwaleOkpai phases 1 & 2 power plants increases.
“Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe, and the transaction will deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe,” Oando said.
The company expects the transaction to generate cash immediately and make a significant contribution to its cashflows.
“Today’s announcement is the culmination of ten years of toil, resilience, and an unwavering belief in the realisation of our ambition since the 2014 entry into the Joint Venture via the acquisition of Conoco-Philips Nigerian Portfolio,” Group Chief Executive Officer, Oando Plc, Wale Tinubu, said.
“It is a win for Oando and every Indigenous energy player as we take our destiny into our own hands and play a pivotal role in this next phase of the nation’s upstream evolution.
“With our assumption of the role of operator, our immediate focus is on optimizing the assets’ immense potential, advancing production, and contributing to our strategic objectives. This we will do while prioritizing responsible practices and sustainable development in ensuring a balanced approach to our host communities, and environmental stewardship as we complement the nation’s plan to boost production output.” Tinubu added.