Oando Plc, a leading Nigerian energy company, has successfully acquired a 100% stake in the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni in a transaction valued at $783 million. This strategic acquisition is set to significantly enhance Oando’s presence in the upstream segment of Nigeria’s oil and gas industry.
The acquisition was announced through a corporate notice filed with the Nigeria Exchange Limited on Thursday. Oando highlighted that this move is in line with its long-term strategy to expand its upstream operations, thereby solidifying its position as a key player in the country’s energy sector.
With the completion of this transaction, Oando has effectively doubled its interest in several vital oil mining leases—namely OML 60, 61, 62, and 63—boosting its stake in the NEPL/NAOC/OOL Joint Venture from 20% to 40%.
“We are pleased to announce the successful completion of the acquisition of 100% of the shareholding interest in the Nigerian Agip Oil Company from the Italian energy company, Eni, for a total consideration of $783 million,” Oando stated.
The newly acquired assets include 40 oil and gas fields, of which 24 are currently producing, along with 1,490 kilometers of pipelines, 12 production stations, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai power plants, which have a combined capacity of 960MW.
As a result of this acquisition, Oando’s total reserves have surged by 98%, rising from 505.6 million barrels of oil equivalent (MMboe) to one billion barrels of oil equivalent, based on 2022 estimates. The company expects the deal to be immediately cash-generative, significantly boosting its revenue and cash flow.
Wale Tinubu, Oando’s Group Chief Executive, hailed the acquisition as a major milestone for the company and the indigenous energy sector at large. “This is a major win for Oando and the entire indigenous energy sector. With full control of these assets, we are in a stronger position to drive Nigeria’s upstream growth while ensuring sustainable practices in our host communities,” Tinubu said.
He further emphasized that Oando’s immediate focus would be on maximizing the potential of the acquired assets, increasing production, and maintaining a balance between operational efficiency and environmental stewardship.
The acquisition received regulatory approval last month from the Nigerian Upstream Petroleum Regulatory Commission, paving the way for the completion of this landmark deal.
