OANDO Plc has successfully completed the acquisition of Nigerian Agip Oil Company (NAOC), a subsidiary of Eni, for $783 million.
This announcement was made today in a statement by Ayotola Jagun, Oando’s Chief Compliance Officer and Company Secretary.
With this acquisition, Oando, which is listed on both the Nigerian Exchange Limited and the Johannesburg Stock Exchange, now holds 100 percent ownership of NAOC, previously owned by the Italian energy company, Eni.
As a leading energy solutions provider in Nigeria, Oando considers this acquisition a significant milestone in its long-term strategy to expand its upstream operations and solidify its position in the Nigerian oil and gas industry.
According to the statement, the acquisition increases Oando’s current participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20 percent to 40 percent.
Furthermore, it enhances Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, which include 40 discovered oil and gas fields—24 of which are currently producing—around 40 identified prospects and leads, 12 production stations, approximately 1,490 kilometers of pipelines, three gas processing plants, the Brass River Oil Terminal, the KwaleOkpai phases 1 & 2 power plants (with a combined capacity of 960MW), and other associated infrastructure.
“Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6 million barrels of oil equivalent (MMboe), and this transaction will deliver a 98 percent increase of 493.6MMboe, bringing the total reserves to 1.0 billion barrels of oil equivalent (Bnboe),” the statement noted.
The transaction is immediately cash-generative and is expected to significantly boost the company’s cashflows.
Wale Tinubu, Group Chief Executive Officer of Oando Plc, stated, “Today’s announcement marks the culmination of ten years of hard work, resilience, and an unwavering belief in realizing our ambition since our 2014 entry into the Joint Venture through the acquisition of Conoco-Phillips’ Nigerian Portfolio.
“This is a victory for Oando and every indigenous energy player as we take control of our destiny and play a pivotal role in the next phase of the nation’s upstream evolution.
“With our new role as operator, our immediate focus is on optimizing the assets’ immense potential, advancing production, and contributing to our strategic objectives. We will prioritize responsible practices, sustainable development, and a balanced approach to our host communities and environmental stewardship as we complement the nation’s plan to boost production output.
“Looking ahead, we will continue to pursue strategic diversification opportunities within the broader energy sector that offer enhanced growth and value creation for our stakeholders, particularly in clean energy, agri-feedstock, energy infrastructure, and mining.”
Today marks a historic milestone for Oando Plc as we proudly announce the completion of our acquisition of 100% shares of Nigerian Agip Oil Company Limited (NAOC Ltd) from Eni.