Oando PLC has successfully concluded its acquisition of Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni, solidifying its position as a leading player in the Nigerian oil and gas industry.
This strategic acquisition, valued at $783 million, marks a significant milestone in Oando’s long-term growth plan, aimed at expanding its upstream operations and strengthening its foothold in the energy sector.
The transaction, which includes reimbursement and consideration for the asset, was confirmed by Oando in a press release. Oando, a Nigerian energy solutions provider, is listed on both the Nigerian Exchange Limited and the Johannesburg Stock Exchange.
With this acquisition, Oando’s participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63 have increased from 20% to 40%. The deal also enhances Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, which includes forty discovered oil and gas fields, twenty-four of which are currently producing.
Additional assets include approximately 1,490 kilometers of pipelines, twelve production stations, three gas processing plants, and the Brass River Oil Terminal.
Based on 2022 reserve estimates, Oando’s total reserves now stand at 1.0 billion barrels of oil equivalent (Bnboe), following a 98% increase of 493.6 million barrels of oil equivalent (MMboe) from the transaction.
This acquisition is expected to be immediately cash generative, significantly boosting the company’s cash flow.
Wale Tinubu, Group Chief Executive of Oando PLC, described the acquisition as a “culmination of ten years of toil, resilience, and an unwavering belief in the realization of our ambition.”
He highlighted that the deal is not only a win for Oando but also for indigenous energy players in Nigeria, as they take control of their destiny and play a pivotal role in 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,” Tinubu said.
He also emphasized the company’s commitment to responsible practices, sustainable development, and environmental stewardship.
Looking ahead, Tinubu stated that Oando would continue to pursue strategic diversification opportunities within the broader energy sector, with a particular focus on clean energy, agri-feedstock, energy infrastructure, and mining.
This approach aligns with the company’s goal of providing enhanced growth and value creation for its stakeholders.
The acquisition of NAOC represents a significant step forward for Oando, as it continues to expand its operations and solidify its position as a major player in the global energy market.