Oando Energy Plc has announced the completion of the acquisition of 100 per cent of the shareholding interest in the Nigerian Agip Oil Company (NAOC) from the Italian energy company, Eni.
This was contained in the company’s notice to the Nigerian Exchange Limited (NGX).
The acquisition was completed for consideration of $783m comprised of consideration for the asset and reimbursement, according to its regulatory filing.
The energy firm noted that the acquisition is a significant milestone in Oando’s long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.
The statement signed by Chief Compliance Officer and Company Secretary, Ayotola Jagun said that the transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent.
It added that the acquisition increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty discovered oil and gas fields, of which twenty-four are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the KwaleOkpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.
It noted that based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe.
It said that the transaction is immediately cash generative and will contribute significantly to the cashflows of the Company.
Commenting, Wale Tinubu, Group Chief Executive, Oando PLC, said: “Today’s announcement is the culmination of ten years of toil, resilience, and an unwavering belief in the realisation of our ambition since the 2014 entry into the Joint Venture via the acquisition of Conoco-Philips Nigerian Portfolio.
“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.”