Oando acquires 100% Agip Nigeria oil asset
****Takes over 40 oil, gas fields, 3 gas plants
**** Acquires export terminal, 960MW power plant, others
By Yusuf Yunus
Oando Plc, a Nigeria’s leading indigenous energy solutions provider has announced that it has reached an agreement with ENI for the acquisition of 100 per cent of the shares of Nigerian Agip Oil Company Ltd., (NAOC).
Ms Ayotola Jagun, the Oando’s company secretary, made this known in a statement on Monday in Lagos.
The Oando thereby taking ownership of forty discovered oil and gas fields, 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 infrastructures.
According to Nigeria’s leading indigenous energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange, the completion of the transaction with ENI, an Italian multinational oil and gas company, is subject to Ministerial Consent and other required regulatory approvals.
The statement confirmed that the transaction highlights include the transaction increases in Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.
It has also increased 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 Kwale-Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.
Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will deliver a 98% increase.
The latest transaction has therefore grown Oando’s exploration asset portfolio through the acquisition of a 90% interest in OPL 282 and a 48% interest in OPL 135.
NAOC Ltd’s participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30%, TotalEnergies 10%, NAOC 5%, NNPC 55%) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.
Commenting, Wale Tinubu, Group Chief Executive, Oando PLC said, “The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production.
“Furthermore, it is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.
Tinubu emphasised that the latest announcement was not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian upstream sector.
He said, “Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders, and shareholders.”
With the transaction, Eni is set to advance its long-term strategy to reduce crude oil exposure in favour of natural gas from its offshore activities in Nigeria.
Investment bank Jefferies pegged the deal at more than $500 million. Meanwhile, following the completion of the transaction, Eni is due to retain the unit’s 5% stake in the Shell Production Development Company (SPDC) joint venture operated by Shell, it said.
As part of its strategy with regards to the energy transition initiatives, Eni signed a deal with Perenco Energies International Ltd divesting several of the Italian company’s oil permits in the Republic of the Congo for $300 million.
This was part of its commitment to developing that Country’s vast gas resources, in particular through the Congo LNG project which will exploit the huge gas resources of Marine XII
