Victor EzejaOando PLC has announced that it has successfully completed acquisition of 100% of the shareholding interest in the Nigerian Agip Oil Company (NAOC), from the Italian energy company, Eni.
A statement signed by Ayotola Jagun, Oando Chief Compliance Officer and Company Secretary, said the acquisition was completed for a consideration of $783 million comprising consideration for the asset and reimbursement.
Join our WhatsApp ChannelThe indigenous oil and gas company said the “acquisition is a significant milestone in Oando’s long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.”
The statement added that completion of the transaction for 100% acquisition of NAOC increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.
The company also stated that completion of the acquisition deal increases its ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include 40 discovered oil and gas fields, of which 24 are currently producing, approximately 40 identified prospects and leads, 12 production stations, approximately 1,490 km of pipelines, 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.
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While stating that its total reserves stand at 505.6MMboe based on 2022 reserves estimates, the company projected that the acquisition“will deliver a 98% increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe.”
“The Transaction is immediately cash generative and will contribute significantly to the cash flows of the Company,” the statement added.
Speaking on the acquisition, Group Chief Executive, Oando PLC, Wale Tinubu, said: the completion of the transaction 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.”
He added that “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.”
READ ALSO: Nigerian Govt Approves Oando’s Acquisition Of Agip
Tinubu revealed that as the company assumes the role of an operator, the immediate focus is on optimizing their assets’ potential, advancing production and contributing to their 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 we complement the nation’s plan to boost production output,” stated.
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The Oando group CEO added that going forward, the company will continue to pursue strategic diversification opportunities within the energy sectors, especially in clean energy, agri-feedstock sector, as well as energy infrastructure and mining.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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