Nigerian energy company, Oando Plc, has entered an agreement with Eni for the acquisition of 100% of the shares of Nigerian Agip Oil Company (NAOC).
The completion of the acquisition is subject to ministerial consent and other required regulatory approvals.
This was announced by the firm in a statement on its website.
“Eni announces the signing of an agreement with Oando PLC – Nigeria’s leading indigenous energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange – for the sale of Nigerian Agip Oil Company Ltd (NAOC Ltd), the wholly Eni-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.
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“NAOC Ltd is present with interests in Nigeria across 4 onshore blocks (OML 60, 61, 62, 63), which it operates on behalf of NAOC JV (operator NAOC Ltd 20%, Oando 20%, NNPC E&P Limited 60%), in the Okpai 1 and 2 power plants (with a total nameplate capacity of 960MW), and in two onshore exploration leases (OPL 282 and OPL 135, respectively 90% and 48%) for which it also holds operatorship,” the statement reads.
However, the company noted that it would still maintain its presence in Nigeria through the Nigeria Agip Exploration (NAE) and Agip Energy.
It also said the transaction was in line with the company’s 2023-2026 plan.
Commenting on the acquisition, the Group CEO of Oando Plc, Wale Tinubu, said the deal would help unlock more opportunities for the energy company.
He 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,” he said.
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