By Ayomide Otitoju
Oando Plc has completed the $783 million acquisition of Nigerian Agip Oil Company (NAOC), a subsidiary of Italian energy firm Eni. The announcement was made on Thursday by Ayotola Jagun, Oando’s Chief Compliance Officer and Company Secretary.
With this deal, Oando, listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange, now holds 100 percent ownership of NAOC. This acquisition marks a significant milestone in Oando’s strategy to expand its upstream operations and solidify its presence in Nigeria’s oil and gas sector.
The acquisition doubles Oando’s participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20 percent to 40 percent. It also increases Oando’s stake in all NEPL/NAOC/OOL Joint Venture assets, which include 40 discovered oil and gas fields, 24 of which are currently producing, and extensive infrastructure, including 12 production stations, nearly 1,500 km of pipelines, and three gas processing plants.
According to 2022 reserves estimates, the transaction boosts Oando’s total reserves by 98 percent, bringing them to 1 billion barrels of oil equivalent (Bnboe). The acquisition is expected to be immediately cash-generative and significantly enhance the company’s cash flows.
Wale Tinubu, Group Chief Executive Officer of Oando Plc, hailed the acquisition as a culmination of a decade of effort and a pivotal moment for both Oando and the broader indigenous energy sector. He emphasized the company’s commitment to optimizing the assets, advancing production, and pursuing responsible and sustainable practices. Tinubu also highlighted Oando’s future plans for strategic diversification within the energy sector, particularly in clean energy and infrastructure.
