Oando PLC, Nigeria’s premier energy solutions provider with listings on the Nigerian Exchange Limited and Johannesburg Stock Exchange, has announced the successful completion of its acquisition of a 100% stake in Nigerian Agip Oil Company (NAOC) from Italian energy giant, Eni. The total consideration for the landmark transaction amounts to $783 million, covering both the asset purchase and reimbursement.
The acquisition marks a pivotal advancement in Oando's strategic plan to bolster its upstream operations and enhance its presence in the Nigerian oil and gas sector.
With the acquisition, Oando’s interest in OMLs 60, 61, 62, and 63 has been elevated from 20% to 40%. Additionally, the deal expands Oando’s stake in all NEPL/NAOC/OOL Joint Venture assets, which include forty discovered oil and gas fields (with twenty-four in production), around forty identified prospects, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai phases 1 & 2 power plants (totaling 960MW capacity), along with other associated infrastructure.
Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98% increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe.
The Transaction is immediately cash-generative and will contribute significantly to the cashflows of the Company.
Commenting, Wale Tinubu CON, Group Chief Executive, Oando PLC, said: "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. 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 optimising the assets' immense potential, advancing production and contributing to our strategic objectives. This we will do while prioritising 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.”
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