Oando Plc has successfully acquired a 100 percent shareholding interest in the Nigerian Agip Oil Company (NAOC) from Eni for $783 million, covering both the asset’s value and reimbursement.
This significant transaction was confirmed in a statement released on Thursday by Ayotola Jagun, Oando’s chief compliance officer and company secretary, and was made public through the Nigerian Exchange (NGX) Limited.
The acquisition marks a crucial step in Oando’s long-term plan to expand its upstream operations and strengthen its position in Nigeria’s oil and gas sector. As a result of the deal, Oando’s participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63 will increase from 20 percent to 40 percent.
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According to Oando, the transaction will also boost the company’s ownership stake in the NEPL/NAOC/OOL Joint Venture Assets, which encompass 40 discovered oil and gas fields—24 of which are currently producing—approximately 40 identified prospects and leads, 12 production stations, nearly 1,490 kilometers of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai phases 1 & 2 power plants with a combined capacity of 960MW, among other critical infrastructure.
The company noted that, based on 2022 reserve estimates, Oando’s total reserves will increase by 98 percent from 505.6 million barrels of oil equivalent (MMboe) to 1.0 billion barrels of oil equivalent (Bnboe) as a result of this acquisition. Additionally, the transaction is expected to be immediately cash generative and will significantly enhance Oando’s cash flows.
Commenting on the milestone, Wale Tinubu, Group Chief Executive of Oando Plc, stated, “Today’s 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 ConocoPhillips Nigerian Portfolio.”
He added, “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.”
Tinubu further emphasized the company’s commitment to optimizing the acquired assets, advancing production, and aligning with its strategic objectives while prioritizing responsible practices and sustainable development. “We will ensure a balanced approach to our host communities and environmental stewardship as we complement the nation’s plan to boost production output,” he said.
Looking ahead, Tinubu assured stakeholders that Oando will continue to pursue strategic diversification opportunities within the broader energy sector, focusing on areas such as clean energy, agri-feedstock, energy infrastructure, and mining to drive growth and value creation.
