Oando Plc has completed the acquisition of Eni’s subsidiary, Nigerian Agip Oil Company (NAOC), for $783m.
The company announced this on Thursday in a statement by its Chief Compliance Officer and Company Secretary, Ayotola Jagun on the company’s X handle.
The deal sees Oando, which is listed on the Nigerian Exchange Limited and Johannesburg Stock Exchange, take ownership of 100 percent of the shareholding interest in NAOC from Italian energy company, Eni.
“Today marks a historic milestone for Oando PLC as we proudly announce the completion of our agreement with Eni for the acquisition of 100% shares of Nigerian Agip Oil Company Limited (NAOC Ltd,)”.the company stated.
According to the company, the signing ceremony, held at The Peninsula Hotel in London, cements our position as Nigeria’s leading indigenous energy solutions provider.
“This strategic acquisition aligns with our commitment to driving Nigeria’s energy transition and bolstering our portfolio.”
“We are excited about the growth opportunities this presents for Oando PLC, our shareholders, and the Nigerian energy sector. We look forward to leveraging the acquired assets to further our goal of providing efficient and sustainable energy solutions for all.”
For Oando, a leading energy solutions provider in Nigeria, the acquisition “is a significant milestone” in its long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.
Based on the statement, the acquisition increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 percent to 40 percent.
It also 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 KwaleOkpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.
“Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98 percent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe,” Oando said.
The transaction is immediately cash-generative and is expected to contribute significantly to the company’s 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 in our 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.
“Looking to the future, we will continue to pursue strategic diversification opportunities within the broader energy sector that provide enhanced growth and value creation for our stakeholders, particularly in clean energy, agri-feedstock sector, as well as energy infrastructure and mining.”