Some experts in Nigeria’s oil and gas sector have commended the group chief executive of Oando Group, Adewale Tinubu, for the company’s acquisition of a 100 per cent stake in Nigerian Agip Oil Company Limited (NAOC Ltd).
According to Femi Odunsi, an oil and gas expert, as a result of this acquisition, Oando’s stake in OMLs 60, 61, 62, and 63 will increase from 20 per cent to an impressive 40 per cent. This remarkable deal is subject to Ministerial Consent and regulatory approvals, underscoring its significance.
Odunsi said, “The AGIP acquisition represents a major leap for Oando, expanding its current interests in key assets and infrastructure. This includes forty discovered oil and gas fields, with 24 currently in production, and approximately forty identified prospects and leads. Additionally, the acquisition includes critical infrastructure such as production stations, pipelines, gas processing plants, and power plants, including the Kwale-Okpai phases 1 & 2 power plants. Based on 2021 reserve estimates, this transaction will deliver a remarkable 98 percent increase in Oando’s total reserves, bringing the total to 503.3 million barrels of oil equivalent (MMboe). Furthermore, the acquisition will bolster Oando’s exploration asset portfolio by securing a 90 percent interest in OPL 282 and a 48 percent interest in OPL 135.”
Another player in Nigeria’s oil sector, Charles Lekson, said Tinubu’s visionary leadership continues to reshape Nigeria’s energy sector, creating opportunities for growth and innovation.
He said, “As Oando Group moves forward with these transformative endeavours, the future of Nigeria’s oil and gas industry looks brighter than ever. Tinubu can be likened to a humble mustard seed that has grown into a mighty oak tree. From his early days as a determined young man with dreams of becoming a global business titan, his journey in the oil and gas sector has been nothing short of remarkable. Tinubu’s path was strewn with formidable challenges at the outset, but his unwavering courage and resilience enabled him to conquer these initial obstacles.”
A close ally of the oil magnate who prefers anonymity said that under Tinubu’s leadership, Oando Marketing, a downstream subsidiary of the group, has grown to become the largest marketer and distributor of refined petroleum products, boasting over 650 strategically positioned service stations across Nigeria, Ghana, Togo, Sierra Leone, and other West African nations. He said, “The successful realisation of this deal could unlock fresh opportunities for Tinubu, who is already contemplating the privatisation of Oando Plc. This proposal, which has been submitted to the Securities and Exchange Commission, is designed to guide the energy conglomerate towards a path of growth after enduring a series of prolonged legal disputes.”
