Oando Plc has successfully completed the $783 million acquisition of Nigerian Agip Oil Company (NAOC), a subsidiary of Eni, marking a significant milestone for the energy giant.
According to Channels Television, the acquisition, officially announced in a statement by Ayotola Jagun, Oando’s Chief Compliance Officer and Company Secretary, transfers full ownership of NAOC to Oando from Italian energy company Eni.
This development substantially strengthens Oando’s position in Nigeria’s petroleum downstream sector, especially following the recent transfer of NNPCL’s retained assets to its holding company, OVH Energy Marketing Company Limited, as earlier reported by MUK TV.
“This acquisition is a significant milestone in our long-term strategy to expand our upstream operations,” said Oando, highlighting the importance of the deal.
With this acquisition, Oando’s stakes in Oil Mining Leases (OMLs) 60, 61, 62, and 63 have doubled from 20 percent to 40 percent. The company now holds a substantial ownership interest in all NEPL/NAOC/OOL Joint Venture assets, including 40 discovered oil and gas fields (24 currently producing), 12 production stations, nearly 1,500 kilometers of pipelines, three gas processing plants, and the Brass River Oil Terminal.
The acquisition also includes the Kwale-Okpai power plants, which boast a combined nameplate capacity of 960 megawatts, and other critical infrastructure.
“Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6 million barrels of oil equivalent (MMboe), and the transaction will deliver a 98 percent increase of 493.6 MMboe, bringing the total reserves to 1.0 billion boe,” Oando said.
The acquisition is expected to be immediately cash-generative, significantly boosting the company’s cashflows.
President Bola Tinubu’s nephew, Wale Tinubu, who is the Group Chief Executive Officer of Oando Plc, described the completion of this deal as the result 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,” he added.
Tinubu emphasized that Oando’s immediate focus will be on optimizing the acquired assets’ potential, advancing production, and contributing to strategic objectives, all while maintaining a balance with responsible practices and sustainable development.
“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,” he said.
