The ownership of Nigerian Agip Oil Company (NAOC) has changed following its acquisition by Nigerian multinational energy company, Oando Plc.
From left: Wale Tinubu, CON, Group Chief Executive, Oando PLC and Guido Brusco, Chief Operating Officer, General Director of Natural Resources, ENI; at the signing for the acquisition of the Nigerian Agip Oil Company (NAOC) on Thursday, August 22nd, in London, United Kingdom.
Oando bought a 100 per cent shareholder interest in NAOC from Eni, an Italian energy company, at $783 million.
Group Chief Executive Officer, Oando, Mr Wale Tinubu, announced the acquisition in Lagos on Thursday in a notification sent to the Nigerian Exchange Ltd. (NGX).
The total transaction, according to him, consisted of the consideration for the asset and reimbursement.
Tinubu stated that the acquisition was 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 acquisition had increased Oando’s current participating interests in OMLs 60, 61,62 and 63 from 20 to 40 per cent.
The Oando CEO said the deal had also increased Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure.
He listed the ownership stake to include the 40 discovered oil and gas fields, of which 24 are currently producing, approximately 40 identified prospects and leads as well as 12 production stations, approximately 1,490 km of pipelines.
Also included are three gas processing plants – the Brass River Oil Terminal, Kwale-Okpai phases one and two power plants with a total nameplate capacity of 960MW and associated infrastructure.
Tinubu explained that based on the year 2022 reserves estimates, Oando’s total reserves stood at 505.6MMboe and that the transaction would deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe.
He noted that the transaction would contribute significantly to the cash flows of the company as it had an immediate cash-generative value.
“This announcement is the culmination of 10 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 into 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 optimising the assets’ immense potential, advancing production and contributing to our strategic objectives.
“This, we will do while prioritising responsible practices and sustainable development in ensuring a balanced approach to our host communities.
“Also, we will ensure environmental stewardship as we complement the nation’s plan to boost production output,” he said.
The Oando boss said that the company would continue to pursue strategic diversification opportunities within the broader energy sector that provide enhanced growth and value creation for its stakeholders.
He emphasised the need to develop the clean energy and agri-feedstock sector, as well as the energy infrastructure and mining sector. (NAN)
