Analysts in the oil and gas sector have commended Oando’s acquisition of a 100 per cent stake in Nigerian Agip Oil Company Limited (NAOC Ltd), predicting it will significantly reshape Nigeria’s oil and gas industry.
The deal, in development since September last year, has finally come to fruition. According to oil and gas analyst Johnson Okoh, this landmark acquisition will double Oando’s oil equivalent output from 25,000 barrels per day to 50,000 barrels per day.
Okoh commended the leadership of Adewale Tinubu, Group Chief Executive of Oando Group, highlighting his ability to identify new business opportunities and create successful partnerships. “His visionary mindset and astute business acumen have allowed him to navigate the complexities of the Nigerian market and foster collaborations with leading international companies. This not only speaks to his own success but also showcases the immense potential within Nigeria’s business landscape,” Okoh said.
Another analyst, Femi Ojo, emphasised Tinubu’s status as a world-class businessman, lauding his visionary leadership and strategic acquisitions.
The final acquisition was announced on Wednesday by the Italian oil and gas giant Eni, which confirmed receiving regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The Italian company also stated that it had obtained all other relevant local and regulatory authorizations.
“Having secured all necessary local and regulatory approvals, this achievement will allow Eni to complete the transaction for the sale of Nigerian Agip Oil Company Ltd (NAOC), its wholly-owned subsidiary focused on onshore oil and gas exploration and production, as well as power generation in Nigeria, to Oando PLC, Nigeria’s leading national energy solutions provider, listed on both the Nigerian and Johannesburg Stock Exchanges.
“NAOC Ltd’s participating interest in the SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30 per cent, TotalEnergies 10 per cent, NAOC five per cent, NNPC 55 per cent) is not included in the transaction and will remain in Eni’s portfolio.
Eni remains committed to the country through investments in deepwater projects and Nigeria LNG,” the company stated.
Eni also announced plans for economic diversification in Nigeria, including assessing the potential for producing agri-feedstock for Enilive bio-refineries and various nature- and technology-based projects, such as clean cooking initiatives to offset emissions. Eni has been operating in Nigeria since 1962, actively engaging in hydrocarbon exploration and production, as well as power generation.
Currently, Eni has a substantial portfolio of exploration and production assets, with an equity production of approximately 40,000 barrels of oil equivalent per day, excluding the NAOC contribution. Eni also holds a 10.4 percent interest in Nigeria LNG.
NAOC focuses on onshore oil and gas exploration and production, as well as power generation, Eni added in the statement.
