Oando, ENI to acquire 100% shares of Nigerian Agip Oil Company

Oando Plc on Monday announced that it has reached an agreement with Eni for the acquisition of 100per cent of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).

Chief Compliance Officer & Company Secretary of Oando, Ayotola Jagun in a signed statement on the Nigerian Exchange Limited (NGX) said the  completion of the transaction is subject to ministerial Consent and other required regulatory approvals.

According to him, the transaction highlights include:  the transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20per cent to 40 per cent; It increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty discovered oil and gas fields, of which twenty-four 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.

Others include  “”Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will deliver a 98 per cent increase; The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90 per cent interest in OPL 282 and 48 per cent interest in OPL 135.;  NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30per cent, TotalEnergies 10%, NAOC 5 per cent, NNPC 55 per cent) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.

The Group Chief Executive, Oando, Wale Tinubu in a statement said, “The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize 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.”