Oando Plc has successfully acquired a 100% shareholding interest in the Nigerian Agip Oil Company (NAOC) from Eni for a total of $783 million. This acquisition marks a significant step in Oando’s long-term strategy to expand its upstream operations in Nigeria’s oil and gas sector.
In a statement released on Thursday by Oando’s chief compliance officer and company secretary, Ayotola Jagun, the company revealed that the transaction will increase its participating interests in several Oil Mining Leases (OMLs) from 20% to 40%. These include OMLs 60, 61, 62, and 63.
The acquisition also boosts Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets, which include 40 discovered oil and gas fields, 24 of which are currently producing. Additionally, the assets encompass 12 production stations, nearly 1,500 kilometers of pipelines, three gas processing plants, the Brass River Oil Terminal, and two power plants with a total capacity of 960MW.
Oando’s total reserves are expected to nearly double, with the transaction adding 493.6 million barrels of oil equivalent (MMboe) to its portfolio, bringing total reserves to 1 billion barrels of oil equivalent (Bnboe). The acquisition is expected to be immediately cash generative, significantly enhancing the company’s cash flows.
Oando’s Group Chief Executive, Wale Tinubu, described the acquisition as the culmination of a decade of effort, resilience, and ambition since the company’s entry into the Joint Venture in 2014 through the acquisition of Conoco-Phillips’ Nigerian portfolio. He emphasized Oando’s commitment to optimizing the assets’ potential, advancing production, and ensuring responsible practices and sustainable development.
Looking ahead, Tinubu assured stakeholders that Oando would continue to seek strategic diversification opportunities in the broader energy sector, particularly in clean energy, agri-feedstock, energy infrastructure, and mining.
