Oando Plc said it has acquired 100 per cent of the shares of ENI in Nigerian Agip Oil Company Limited (NAOC Ltd).
The oil giant made the disclosure on Monday.
The oil company said it has “reached an agreement with Eni (“ENI”) (an integrated energy company actively supporting a just
energy transition, with the objective of achieving Net-Zero carbon emissions by 2050 and promoting efficient and sustainable access to energy for all), for the acquisition of 100 per cent of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
“Completion of the transaction is subject to Ministerial Consent and other required regulatory approvals,” Oando said.
With the acquisition, Oando’s current participating interests in OMLs 60, 61, 62, and 63 have increased from 20 per cent to 40 per cent.
The deal 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 and approximately 1,490 km of
pipelines.
Others are three gas processing plants, the Brass River Oil Terminal, the Kwale Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW),
and associated infrastructure.
“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 30 per cent, TotalEnergies 10 per cent, NAOC 5 per cent,” read the regulatory filing.
Wale Tinub, the Group Chief Executive, Oando PLC described the deal as an important milestone in the company’s future.
Tinubu said it would also unlock Oando’s potential as a major player in the Nigerian oil and gas sector.
“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.”