In a landmark transaction poised to reshape Nigeria’s oil and gas landscape, Oando PLC has successfully acquired 100% of the shareholding interest in Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni.
The deal, valued at $783 million, marks a significant expansion of Oando’s upstream operations, effectively doubling the company’s reserves and increasing its participating interests in several key oil fields.
The acquisition, which includes a 100% shareholding interest in NAOC, is a landmark achievement for Oando as it strengthens its participating interests in four key oil mining leases (OMLs 60, 61, 62, and 63) from 20% to 40%. This expansion solidifies Oando’s ownership in all NEPL/NAOC/OOL Joint Venture assets, encompassing 40 discovered oil and gas fields, 24 of which are currently producing, along with a vast network of infrastructure including 1,490 kilometres of pipelines and three gas processing plants.
Commenting on the completion of the transaction, Wale Tinubu, Group Chief Executive of Oando PLC, described it as the culmination of a decade-long strategic effort.
“Today’s announcement is the culmination of ten 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,” he stated.
The transaction also marks a significant increase in Oando’s reserves, adding 493.6 million barrels of oil equivalent (MMboe) to bring the company’s total reserves to one billion barrels. This development is expected to be immediately cash generative, contributing significantly to the company’s cashflows and future financial performance.
Oando’s acquisition is not only about expanding production but also about ensuring sustainable development and responsible practices, Tinubu remarked, as he said, “Our immediate focus is on optimizing the assets’ immense potential, advancing production and contributing to our strategic objectives. This we will do while prioritizing responsible practices and sustainable development in ensuring a balanced approach to our host communities and environmental stewardship.”
As Oando assumes the role of operator for these assets, the company is also looking to the future with plans to diversify within the broader energy sector, as Tinubu highlighted Oando’s intention to explore opportunities in clean energy, agri-feedstock, energy infrastructure, and mining, reflecting the company’s commitment to long-term growth and value creation for its stakeholders.
Ozioma Samuel-Ugwuezi
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