Oando completes $783m acquisition of Agip

Oando Plc has disclosed that it has completed the acquisition of 100 per cent of the shareholding interest in the Nigerian Agip Oil Company (NAOC) from the Italian energy company, Eni, for a total consideration of $783 million.

Daily Trust reports that Oando, about a month ago, received a formal consent from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the acquisition of 100 per cent of the shares of NAOC.

Following Eni’s receipt of consent, both parties were now authorised to proceed with the completion of the transaction.

Oando said the acquisition was a significant milestone in its long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.

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The transaction increased Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 to 40 per cent.

This is in addition to increasing Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which includes 40 discovered oil and gas fields, of which 24 are currently producing, approximately 40 identified prospects and leads, 12 production stations, approximately 1,490km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale 1 Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW) and associated 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 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe.

Group Chief Executive of Oando, Wale Tinubu, said, “Today’s announcement is the culmination of 10 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. With our assumption of the role of operator, our immediate focus is on optimising the assets’ immense potential, advancing production and contributing to our strategic objectives.”