JUST-IN: Oando Completes $783m Acquisition Of Agip Oil Company

Oando Plc said it has completed the acquisition of 100 per cent shareholding interest in the Nigerian Agip Oil Company (NAOC) from Eni, for a total consideration of $783 million, including consideration for the asset and reimbursement.

Oando stated this in a statement signed by its chief compliance officer and company secretary, Ayotola Jagun, which was released on the Nigerian Exchange (NGX) Limited on Thursday.

It stated that the acquisition was a significant milestone in Oando’s long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.

Highlight of the transaction revealed that this will increase Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent.

It stated that, “the transaction will also increase Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture Assets and infrastructure which include forty discovered oil and gas fields, of which 24 are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the KwaleOkpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.”

It added that based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe; and the transaction is immediately cash generative and will contribute significantly to the cash flows of the company

Speaking, group chief executive, Oando Plc, Wale Tinubu, 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.”

According to Tinubu, 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, Oando CEO assured: “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.”