Oando Plc, said it has reached an agreement with Eni, an Italian multinational energy company for the acquisition of 100 per cent of the shares of the Nigerian Agip Oil Company (NAOC).
Eni has been present in Nigeria since 1962 through its subsidiary NAOC, the operator of OMLs 60, 61, 62 and 63.
Recall that in 2014, Oando acquired ConocoPhillips’ Nigerian assets, giving the company a 20 per cent working interest in the NAOC Joint Venture which also includes the NNPC Exploration & Production Limited (NEPL) and NAOC.
This singular transaction at the time catapulted Oando from producing 4.5kboepd to 50kboepd. At the same time the company set a target to increase its production to 100kboepd and its reserves to 500MMboe as well as realise operatorship.
As of 2021, Oando had exceeded its reverse target with 2P reserves of 503.3MMboe.
On completion of the transaction the company’s reserves will increase by 98 per cent to nearly 1 billion barrels of oil equivalent.
Upon completion, the Oando/Eni transaction will see Oando takeover as operators of the assets OMLs 60-63, it will also increase Oando’s current participating interests in OMLs 60-63 from 20 per cent, 40 per cent grow Oando’s exploration asset portfolio through the acquisition of 90 per cent interest in OPL 282 and 48 per cent interest in OPL 135; increase Oando’s total 2P reserves by 98 per cent increase as well as increase Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure.
The transaction when completed will further reiterate the growth in indigenous capacity, especially as more IoCs choose to divest from Nigeria.
With this deal Oando sees the year 2023 as proving an interesting year for the company.
Early, this year, Oando launched her renewable energy subsidiary and in partnership with Lagos State unveiled electric mass transit buses which have recorded over 60 successful operational days across 4 Lagos routes. This SPA solidifies steps the company is taking to reassert their positioning within the sector.
Commenting on the transaction the group chief executive, Oando PLC, Adewale Tinubu.
“The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimise resource allocation, and significantly increase production. Furthermore, it is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.
Today’s announcement is not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian upstream sector.
Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders and shareholders.”
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