By Dipo Olowookere
An indigenous energy firm, Oando Plc, has completed the acquisition of a 100 per cent equity stake in the Nigerian Agip Oil Company (NAOC) from the Italian energy company, Eni, in a deal believed to be worth $783 million.
In a statement on Thursday, Oando, led by Mr Wale Tinubu, said the transaction is one of its long-term strategies to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.
“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.
“With our assumption of the role of operator, our immediate focus is on optimizing the assets’ immense potential, advancing production and contributing to our strategic objectives.
“This we will do while prioritizing responsible practices and sustainable development in ensuring a balanced approach to our host communities, and environmental stewardship as we complement the nation’s plan to boost production output,” Mr Tinubu was quoted as saying in the statement.
The oil and gas guru further said, “Looking to the future, we will continue to pursue strategic diversification opportunities within the broader energy sector that provide enhanced growth and value creation for our stakeholders, particularly in clean energy, agri-feedstock sector, as well as energy infrastructure and mining.”
Business Post gathered that the acquisition of Agip by Oando effectively increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent.
In addition, it raises the company’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include 40 discovered oil and gas fields, of which 24 are currently producing, approximately 40 identified prospects and leads, 12 production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.
The firm said based on 2022 reserves estimates, its 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.
Oando expressed optimism that the acquisition would contribute significantly to its cashflows because it is “immediately cash generative.”