Nigeria: Oando Completes Acquisition Of Eni’s Subsidiary

Italian oil and gas giant, Eni, has announced the closing of the sale of its wholly-owned subsidiary, Nigerian Agip Oil Company Ltd (NAOC), to Oando PLC (Oando), Nigeria’s leading indigenous energy solutions provider.

Oando is listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange.

NAOC engages in onshore oil & gas exploration and production in Nigeria, as well as power generation,

The transaction, which received the approval of all relevant authorities, is in line with Eni’s strategy focused on the rationalisation of the upstream activities by rebalancing its portfolio and divesting non-strategic assets.

The five per cent participating interest in SPDC (Shell Production Development Company Joint Venture) is not included in the transaction, as it will be retained in Eni’s portfolio.

Eni will continue to be present in the Country through investment in deepwater projects and Nigeria LNG, while also exploring new opportunities related to the agri-feedstock sector.

The $783-million transaction sees Oando’s participating interests in Oil Mining Licenses (OML) 60, 61, 62 and 63 increase from 20% to 40% and its total reserves grow by almost 100% to one billion barrels of oil equivalent.

Oando’s ownership stake will also increase in NAOC’s joint venture assets, which include 40 discovered oil and gas fields – of which 24 are currently producing – 40 identified prospects and leads, 12 production stations, 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai Phase 1 & 2 power plants and associated infrastructure.

With a diverse portfolio of on- and offshore assets in Nigeria’s oil and gas sector, Oando represents one of the leading indigenous explorers on the continent.

Currently, its producing assets include Qua Iboe (OML 13) and the Ebendo Field (OML 56), in addition to the four OMLs acquired from NAOC.

The company’s promising development pipeline includes OML 90 and OML 122, which hold tremendous potential for boosting Oando’s operational capacity, while its exploration prospects center around interests in several strategic assets, including OMLs 321 and 323, as well as Blocks 5 and 12, OML 131 and OML 145.

“This announcement is the culmination of ten 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-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,” said Wale Tinubu CON, Group Chief Executive, Oando PLC.

Affirming its commitment to Africa’s energy sector growth, the company will discuss its latest acquisition and investment strategy, with a focus on integrating just transition principles and technologies and ensuring local value creation.

Boasting a number of strategic partnerships and with a focus on sustainable growth, Oando PLC is well-positioned to harness the full potential of Africa’s energy resources and create long-term value for the company’s stakeholders.

With a diverse and robust array of assets, Oando PLC has established a firm foundation for its business operations, ensuring a strong and sustainable presence in the dynamic and ever-evolving oil and gas sector.

Commenting on the deal Executive Chairman of African Energy Chamber NJ Ayuk said: “Oando is delivering on its pledge to expand upstream investments and its position in Nigeria’s oil and gas sector.

The AEC congratulates and supports Oando on the successful completion of this milestone transaction, as it affirms the influence of local exploration and production companies and their unwavering belief in harnessing the full scope of Africa’s energy resources.

“We look forward to unpacking this deal and its many implications for the sector at this year’s AEW,” he said.

Source: https://energynewsafrica.com