Oando PLC, Nigeria’s leading indigenous energy solutions provider and Eni, an integrated energy company have entered a pact to acquire 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
Eni is an active supporter of a just energy transition, with the objective of achieving Net-Zero carbon emissions by 2050 and promoting efficient and sustainable access to energy for all.
A statement from Oando, which is listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange, says completion of the transaction is subject to Ministerial Consent and other required regulatory approvals.
According to the statement, the transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40% as well as raised Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure.
Oando’s ownership stake include; forty discovered oil and gas fields, of which twentyfour are currently producing, approximately forty identified prospects and leads, twelve 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.
Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will deliver a 98% increase. The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90% interest in OPL 282 and 48% interest in OPL 135.
NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30%, TotalEnergies 10%, NAOC 5%, NNPC 55%) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.
Commenting on the deal Wale Tinubu CON, Group Chief Executive, Oando PLC said:
“The synergies created by this acquisition will unlock unparalleled opportunities for us to realign expectations, enhance efficiency, optimize resource allocation, and significantly increase production.
“Furthermore, it is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.
“Today’s announcement is not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian upstream sector.
“Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders and shareholders.”
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