Oando Plc has finalized the acquisition of the Nigerian Agip Oil Company (NAOC) from Eni, a deal valued at $783 million. This total includes the purchase price of the assets and additional reimbursements. The announcement was made in a statement from Ayotola Jagun, Oando’s chief compliance officer and company secretary, which was released on the Nigerian Exchange (NGX) Limited.
This acquisition represents a significant milestone in Oando’s long-term strategy to expand its operations in the upstream oil sector and solidify its position within Nigeria’s oil and gas industry. The purchase marks a major step in Oando’s efforts to enhance its footprint and capabilities in the country’s energy sector.
With this acquisition, Oando will see a substantial increase in its interest in oil mining leases (OMLs) 60, 61, 62, and 63, raising its participation from 20% to 40%. Additionally, the acquisition will enhance Oando’s ownership in the NEPL/NAOC/OOL Joint Venture assets.
This includes a range of significant infrastructure and resources such as 40 discovered oil and gas fields, with 24 currently in production. The deal also encompasses about 1,490 kilometers of pipelines, three gas processing plants, the Brass River Oil Terminal, and the KwaleOkpai phases 1 and 2 power plants, which have a combined capacity of 960 megawatts (MW).
Based on reserves estimates from 2022, Oando’s total reserves will increase from 505.6 million barrels of oil equivalent (MMboe) to 1 billion barrels of oil equivalent (Bnboe) following this acquisition.
This represents a 98% increase, significantly boosting the company’s reserves and its potential for future production. The deal is expected to be immediately cash-generative, enhancing the company’s cash flow and overall financial health.
Wale Tinubu, the Group Chief Executive of Oando Plc, described the completion of the acquisition as the culmination of a decade of dedicated effort, resilience, and unwavering commitment. He highlighted that this achievement is not only a victory for Oando but also a significant moment for indigenous energy companies in Nigeria.
Tinubu emphasized that Oando’s role as an operator will focus on maximizing the potential of these new assets, advancing production, and meeting strategic goals.
Tinubu also stressed the importance of responsible practices and sustainable development. The company plans to balance its activities with a commitment to environmental stewardship and community engagement. This approach aligns with Nigeria’s broader goals of increasing oil production while ensuring environmental protection and community support.
Looking forward, Tinubu assured that Oando will continue to seek strategic opportunities for diversification and growth within the energy sector. This includes expanding into clean energy, agriculture feedstock, energy infrastructure, and mining. Oando aims to create long-term value and growth for its stakeholders through these diversified investments.
