African Energy Chamber Endorses Oando's $783M Acquisition of Nigerian Agip Oil Company

The African Energy Chamber (AEC), a leading voice in the continent's energy sector, has endorsed Oando PLC's landmark $783-million acquisition of the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni. This strategic move highlights the increasing influence of local exploration companies in transforming Nigeria and Africa's upstream oil and gas industry.

With this acquisition, Oando's participating interests in Oil Mining Licenses (OMLs) 60, 61, 62, and 63 will double from 20% to 40%, significantly boosting its total reserves to nearly one billion barrels of oil equivalent. The deal also expands Oando's ownership in NAOC's joint venture assets, which encompass 40 discovered oil and gas fields—24 of which are currently producing—along with 12 production stations, 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai Phase 1 & 2 power plants, among other key infrastructure.

With a diverse portfolio of on- and offshore assets in Nigeria’s oil and gas sector, Oando represents one of the leading indigenous explorers on the continent. Currently, its producing assets include Qua Iboe (OML 13) and the Ebendo Field (OML 56), in addition to the four OMLs acquired from NAOC. The company’s promising development pipeline includes OML 90 and OML 122, which hold tremendous potential for boosting Oando’s operational capacity, while its exploration prospects center around interests in several strategic assets, including OMLs 321 and 323, as well as Blocks 5 and 12, OML 131 and OML 145.

“This announcement is the culmination of ten years of toil, resilience and an unwavering belief in the realization of our ambition since the 2014 entry into the Joint Venture via the acquisition of Conoco-Philips Nigerian Portfolio. 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,” said Wale Tinubu CON, Group Chief Executive, Oando PLC.

Affirming its commitment to Africa’s energy sector growth, the company will discuss its latest acquisition and investment strategy, with a focus on integrating just transition principles and technologies and ensuring local value creation. Boasting a number of strategic partnerships and with a focus on sustainable growth, Oando PLC is well-positioned to harness the full potential of Africa’s energy resources and create long-term value for the company’s stakeholders. With a diverse and robust array of assets, Oando PLC has established a firm foundation for its business operations, ensuring a strong and sustainable presence in the dynamic and ever-evolving oil and gas sector.

“Oando is delivering on its pledge to expand upstream investments and its position in Nigeria’s oil and gas sector. The AEC congratulates and supports Oando on the successful completion of this milestone transaction, as it affirms the influence of local exploration and production companies and their unwavering belief in harnessing the full scope of Africa’s energy resources.    We look forward to unpacking this deal and its many implications for the sector at this year’s AEW,” says NJ Ayuk, AEC Executive Chairman.