Group Chief Executive, Oando PLC, Wale Tinubu has reacted to the deal between Oando and Eni, stating that the synergies created by this development will unlock unparalleled opportunities for Oando to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production. Furthermore, it is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.
OANDO PLC in announcing the agreement with ENI for the acquisition of 100 percent in Nigeria Agip Oil Company quoted the company’s Group Chief Executive, as saying that: “ Today’s announcement is not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian upstream sector.
Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders and shareholders.”
The company in a letter to the Nigerian stock Exchange to announce this development, stated that it is pleased to announce that it has reached an agreement with Eni (“ENI”) (an integrated energy company actively supporting a just energy transition, with the objective of achieving Net-Zero carbon emissions by 2050 and promoting efficient and sustainable access to energy for all), for the acquisition of 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).”
Completion of the transaction is subject to Ministerial Consent and other required regulatory approvals.
Transaction Highlights
• The transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.
• It increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty discovered oil and gas fields, of which twenty-four are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.
• Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will deliver a 98% increase.
• The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90% interest in OPL 282 and 48% interest in OPL 135.
• NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30%, TotalEnergies 10%, NAOC 5%,
NNPC 55%) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio
Eni Spa on Monday announced that it has signed an agreement with Oando PLC, the leading Nigerian energy company listed on both the Nigerian Stock Exchange and Johannesburg, to sell Nigerian Agip Oil Company Ltd, a wholly owned subsidiary of Eni and active in Nigeria in onshore hydrocarbon exploration and production and power generation.
In Nigeria, NAOC holds corporate interests in four onshore blocks – OML 60, 61, 62, 63 – operated on behalf of the NAOC JV – operator NAOC Ltd 20%, Oando 20%, NNPC E&P Limited 60% -, in Okpai 1 and 2 power plants with an installed capacity of 960MW, and in two onshore exploration licenses – OPL 282 and OPL 135, 90% and 48%, respectively -, of which it is also operator.
The stake NAOC holds in SPDC JV – Shell Production Development Company Joint Venture – Shell operator 30 percent, TotalEnergies 10 percent, NAOC 5 percent, NNPC 55 percent – is outside the scope of the transaction and will remain in Eni’s portfolio.
The transaction is in line with Eni’s 2023-2026 Plan. “Upstream will complement core organic growth with high-profile portfolio assets, adding resources that will increase their value, while divesting assets that can offer greater value and opportunities to the new owners,” the company explained in a note.
The closing of the transaction is subject, inter alia, to the approval of all relevant local and regulatory authorities.
Eni trades in the green by 0.6 percent at EUR14.62 per share.
Source: Alliance News
