Oando Group’s acquisition of 100% of the shareholding interest in Nigerian Agip Oil Company (NAOC) from the Italian energy giant Eni, has been attributed to 10 years of relentless effort and determination by Jubril Adewale Tinubu, the Group Chief Executive of Oando Group.
This acquisition is seen as a game-changer for both Oando and the broader Nigerian energy sector.
“Today’s announcement is the culmination of 10 years of hard work, resilience, and an unwavering belief that we would realise our ambition. It is a win, not just for Oando, but for every indigenous energy player as we take our destiny in our hands,” Tinubu stated.
The acquisition is expected to double Oando’s oil equivalent output from 25,000 barrels per day to 50,000 barrels per day, positioning the company as a dominant player in Nigeria’s upstream sector.
Tinubu emphasized the strategic importance of this move, noting that “This is a new dawn for the Nigerian energy sector, and we are confident that indigenous companies will play a pivotal role in this next phase of the nation’s upstream evolution. With our assumption of the role of operator, our immediate focus is on optimising the assets’ immense potential in contributing to our strategic objectives, whilst complementing the nation’s plan to boost production outputs.”
Oando’s acquisition of NAOC comes at a time when international oil companies (IOCs) are increasingly divesting from Nigeria’s onshore and shallow water assets, focusing instead on deepwater projects and other global opportunities. This trend has opened up space for indigenous companies like Oando to step in and take the lead in revitalizing Nigeria’s oil and gas industry.
The significance of this acquisition has not gone unnoticed by industry analysts. Ms. Taiwo Alegeh, a respected oil and gas analyst, highlighted the transformative impact of the deal.
“This landmark acquisition will double Oando’s oil equivalent output… His [Tinubu’s] visionary mindset and astute business acumen have allowed him to navigate the complexities of the Nigerian market and foster collaborations with leading international companies,” Alegeh remarked.
The deal, which was finalized following the approval of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other relevant authorities, excludes NAOC’s participating interest in the Shell Production Development Company Joint Venture (SPDC JV), which will remain with Eni. Despite this, Eni remains committed to Nigeria, with plans for continued investments in deepwater projects and other initiatives, including clean energy and agri-feedstock production for its bio-refineries.
Oando, for its part, sees this acquisition as more than just a business deal—it represents a pivotal moment in the history of Nigeria’s energy sector.
Reflecting on the company’s journey, Oando noted, “It is rather uncanny that this acquisition comes exactly a decade after Oando’s landmark $1.8 billion acquisition of ConocoPhillips’ Nigeria interest, a transaction which incidentally made the company a Joint Venture (JV) partner on the asset alongside NNPC E&P Ltd (NEPL) and NAOC.”
With the acquisition, Oando’s stake in Oil Mining Licenses (OMLs) 60, 61, 62, and 63 increases from 20% to 40%, along with a significant ownership of vital infrastructure, including 12 production stations, approximately 1,490 km of pipelines, three gas processing plants, and power generation facilities with a total capacity of 960MW.
The deal also boosts Oando’s production reserves, which are expected to grow from 505.6 million barrels of oil equivalent (MMboe) to 1 billion barrels of oil equivalent (bnboe).
In the broader context of Nigeria’s energy landscape, the acquisition is seen as a precursor to further indigenous involvement in the sector. Dr. Ainojie Irune, Executive Director of Oando PLC and Chief Operating Officer of Oando Energy Resources, underscored the potential of local companies to rejuvenate the industry.
“If you look at the local companies that have stepped forward… there’s no doubt that indigenous capacity exists,” Irune stated.
The successful completion of this deal is likely to encourage other indigenous companies to pursue similar acquisitions, bringing in new capital, technology, and expertise that could help to revitalize Nigeria’s oil production, reduce carbon emissions, and create new opportunities within the industry.
Irune further commented on the potential benefits of increased indigenous participation, noting, “My personal opinion is that having indigenous players will definitely improve issues around fairness and this need to engage in sabotage and theft. Collectively, independents can build a more cohesive and collaborative oil sector.”
As Oando continues to expand its footprint in Nigeria’s energy sector, the company is poised to play a central role in shaping the future of the industry, demonstrating the significant impact that indigenous companies can have on the nation’s economic development and global standing.