Oando PLC Completes $783 Million Acquisition of Eni’s Subsidiary, NAOC
Oando PLC, Nigeria’s leading energy solutions provider, has successfully completed the acquisition of 100% of the shareholding interest in Nigerian Agip Oil Company (NAOC) from the Italian energy giant, Eni. The transaction, valued at $783 million, includes both the asset consideration and reimbursement, marking a significant milestone in Oando’s strategy to expand its upstream operations and solidify its position in the Nigerian oil and gas sector.
Transaction Highlights:
- Increased Participating Interests: The acquisition increases Oando’s current participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20% to 40%.
- Enhanced Asset Ownership: Oando now holds a larger stake in all NEPL/NAOC/OOL Joint Venture assets, which includes 40 discovered oil and gas fields, 24 of which are currently producing. The assets also encompass approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai phases 1 & 2 power plants with a total capacity of 960MW.
- Significant Increase in Reserves: Oando’s total reserves, based on 2022 estimates, will see a 98% increase from 505.6 million barrels of oil equivalent (MMboe) to approximately 1 billion barrels of oil equivalent (Bnboe).
- Immediate Cash Generation: The transaction is expected to be immediately cash generative, significantly contributing to Oando’s cashflows.
Strategic Impact:
Wale Tinubu, Group Chief Executive of Oando PLC, expressed his satisfaction with the acquisition, describing it as the culmination of a decade of efforts since Oando’s 2014 entry into the Joint Venture through the acquisition of Conoco-Philips’ Nigerian Portfolio. Tinubu emphasized that this acquisition represents a major victory for Oando and other indigenous energy players, as they take control of their destinies and play pivotal roles in the evolution of Nigeria’s upstream sector.
Tinubu also outlined Oando’s immediate focus on optimizing the newly acquired assets’ potential, advancing production, and contributing to the company’s strategic objectives. He highlighted the company’s commitment to responsible practices, sustainable development, and environmental stewardship, all while supporting Nigeria’s plan to boost production output.
Looking forward, Oando intends to pursue further strategic diversification within the broader energy sector, with particular interest in clean energy, agri-feedstock, energy infrastructure, and mining. This acquisition strengthens Oando’s position as a key player in Nigeria’s oil and gas industry, paving the way for future growth and value creation for its stakeholders.
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Forward-Looking Statements:
The announcement includes forward-looking statements related to the acquisition, which are subject to risks and uncertainties inherent in the energy sector. Oando has cautioned that actual results could differ materially from current expectations due to factors such as international operations, exploration results, and crude oil prices.
Oando remains committed to updating its stakeholders on developments as they occur, ensuring transparency and adherence to applicable securities laws
