Oando Plc has officially announced the completion of its acquisition of a 100% shareholding in the Nigerian Agip Oil Company (NAOC) from the Italian energy giant Eni for a total consideration of $783 million.
The acquisition, initially approved by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) about a month ago, marks a significant milestone for Oando in its ongoing efforts to expand its upstream operations and solidify its presence in Nigeria’s oil and gas sector.
With this acquisition, Oando’s participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63 have doubled, increasing from 20% to 40%. Additionally, Oando now holds an enhanced ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, which includes:
- 40 discovered oil and gas fields (with 24 currently producing)
- Approximately 40 identified prospects and leads
- 12 production stations
- Around 1,490 kilometers of pipelines
- Three gas processing plants
- The Brass River Oil Terminal
- The Kwale 1 and Okpai phases 1 & 2 power plants, which have a combined capacity of 960 megawatts (MW)
Based on 2022 reserve estimates, Oando’s total reserves are 505.6 million barrels of oil equivalent (MMboe). This acquisition will add 493.6 MMboe to Oando’s reserves, resulting in 1 billion barrels of oil equivalent (Bnboe).
Wale Tinubu, Oando’s Group Chief Executive, expressed his satisfaction with the deal, stating, “Today’s announcement is the culmination of 10 years of toil, resilience, and an unwavering belief in the realization of our ambition since the 2014 entry into the joint venture via the acquisition of Conoco-Phillips’ Nigerian Portfolio.”
He added, “It is a win for Oando and every Indigenous energy player as we take our destiny into our hands and play a pivotal role in this next phase of the nation’s upstream evolution. With our assumption of the operator role, our immediate focus is optimizing the assets’ immense potential, advancing production, and contributing to our strategic objectives.”
