Oando Plc, a leading Nigerian energy company, has revealed its agreement with Eni to acquire a 100 percent stake in Eni’s subsidiary, Nigerian Agip Oil Company Limited (NAOC Ltd). The completion of this transaction remains contingent upon ministerial consent and obtaining the necessary regulatory approvals, as outlined in an official statement released by Oando.
This strategic move marks a significant expansion for Oando in the Nigerian oil and gas sector. It will increase Oando’s current participating interests in oil mining leases (OMLs) 60, 61, 62, and 63, from the existing 20 percent to a commanding 40 percent. Additionally, Oando will gain a more substantial ownership stake in all assets and infrastructure associated with the “NNPC Exploration and Production Limited (NEPL)/NAOC/OOL” joint venture.
Among the assets involved in the transaction are:
- 40 discovered oil and gas fields (including 24 presently in production).
- Approximately 40 identified prospects and leads.
- 12 production stations.
- Approximately 1,490 kilometers of pipelines.
- Three gas processing plants, including the Brass River oil terminal and the Kwale-Okpai phases 1 and 2 power plants, with a total nameplate capacity of 960 megawatts.
As of 2021 reserves estimates, this acquisition significantly bolsters Oando’s total reserves, delivering a remarkable 98 percent increase. Furthermore, it expands Oando’s exploration asset portfolio by acquiring a 90 percent interest in OPL 282 and a 48 percent interest in OPL 135.
It’s important to note that NAOC Ltd’s participating interest in the SPDC JV (Shell Production Development Company Joint Venture), where Shell holds 30 percent, Total Energies 10 percent, NAOC 5 percent, and NNPC 55 percent, is not part of the transaction and will remain in Eni’s portfolio.
In response to this acquisition, Wale Tinubu, the Group Chief Executive at Oando Plc, expressed his enthusiasm, stating, “The synergies created by the acquisition will unlock unparalleled opportunities for the company to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production.”
He emphasized that this acquisition aligns with Oando’s strategic focus on acquiring, enhancing, appraising, and efficiently developing reserves. Tinubu also highlighted the pivotal role of indigenous players in Nigeria’s upstream sector and the positive impact this acquisition will have on local communities, stakeholders, and shareholders.
This acquisition marks a transformative step for Oando, solidifying its position as a major player in Nigeria’s energy sector and signaling its commitment to delivering sustainable value to its various stakeholders.