Oando Plc has announced the acquisition of a 100 per cent stake in the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni, in a transaction valued at $783 million. This strategic acquisition, disclosed in a corporate notice filed with the Nigeria Exchange Limited on Thursday, marks a significant expansion of Oando’s upstream operations within Nigeria’s oil and gas sector.
The deal significantly boosts Oando’s interests in key oil mining leases, increasing its participating interest in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20 per cent to 40 per cent. This effectively doubles its stake in the NEPL/NAOC/OOL Joint Venture, positioning Oando for enhanced growth and operational influence.
In a statement, Oando expressed satisfaction with the transaction, stating, “We are pleased to announce the successful completion of the acquisition of 100 per cent of the shareholding interest in the Nigerian Agip Oil Company from the Italian energy company, Eni, for a total consideration of US$783m comprised of consideration for the asset and reimbursement (the ‘transaction’).”
The assets acquired include 40 oil and gas fields, 24 of which are currently producing, alongside 1,490 kilometres of pipelines, 12 production stations, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai power plants with a combined capacity of 960 megawatts.
As a result of the acquisition, Oando’s total reserves have nearly doubled, surging by 98 per cent from 505.6 million barrels of oil equivalent (MMboe) to one billion barrels of oil equivalent, based on 2022 estimates. The company noted that the deal is expected to be immediately cash-generative, providing a substantial boost to its revenue and cash flow.
Reflecting on the acquisition, Wale Tinubu, Group Chief Executive of Oando, described the deal as a culmination of a decade-long journey that began with the company’s entry into the Joint Venture through the acquisition of ConocoPhillips’ Nigerian assets in 2014. “This is a major win for Oando and the entire indigenous energy sector. With full control of these assets, we are in a stronger position to drive Nigeria’s upstream growth while ensuring sustainable practices in our host communities,” Tinubu said.
He further emphasised that Oando’s immediate focus would be on maximising the potential of the acquired assets, increasing production, and maintaining a balance between operational efficiency and environmental stewardship.
This acquisition received the approval of the Nigerian Upstream Petroleum Regulatory Commission last month, marking a significant milestone in Oando’s strategic expansion in the Nigerian oil and gas landscape.
