Oando Plc has made a 100% acquisition of Nigerian Agip Oil Company (NAOC) from Italian energy firm, Eni, in a deal valued at $783 million.
Oando noted in a corporate notice on the Nigeria Exchange Limited that this strategic acquisition aligns perfectly with its long-term vision to bolster its upstream operations in Nigeria’s oil and gas industry.
The acquisition significantly increases Oando’s participating interest in key oil mining leases 60, 61, 62, and 63 from 20% to 40%, effectively doubling its stake in the NEPL/NAOC/OOL Joint Venture.
The newly acquired assets include an impressive 40 oil and gas fields, with 24 currently producing, as well as 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 960MW.
This landmark deal has a profound impact on Oando’s reserves, resulting in a remarkable 98% increase from 505.6 million barrels of oil equivalent to 1 billion barrels, based on 2022 estimates.
The acquisition is expected to be immediately cash-generative, substantially boosting revenue and cash flow.
According to Wale Tinubu, Group Chief Executive of Oando, this acquisition is a major win for the company and the indigenous energy sector. He emphasised Oando’s commitment to maximising the potential of the acquired assets, increasing production, and maintaining a delicate balance between operational efficiency and environmental stewardship.
Looking ahead, Oando plans to pursue strategic diversification opportunities in clean energy, agri-feedstock sector, energy infrastructure, and mining, ensuring continued value creation for stakeholders and contributions to Nigeria’s energy sector growth.
As Oando assumes the role of operator, its focus will be on optimizing asset potential, advancing production, and contributing to strategic objectives while prioritizing responsible practices and sustainable development.
The Nigerian Upstream Petroleum Regulatory Commission has approved the sale of Nigerian Agip Oil Company from Eni to Oando, solidifying this acquisition.
Oando PLC makes 100% acquisition of Nigerian Agip Oil Company
