BREAKING: Oando PLC Completes Acquisition of Nigerian Agip Oil Company for $783 Million
Oando PLC has Completed the Acquisition of Nigerian Agip Oil Company for $783 Million.
Oando PLC has successfully finalized the acquisition of the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni for $783 million. This transaction marks a significant milestone in Oando’s strategic expansion within Nigeria’s oil and gas sector.
The company confirmed the completion of the deal in a press release, emphasizing that the acquisition includes reimbursement and consideration for NAOC’s assets. This move is set to strengthen Oando’s position by enhancing its operational footprint and expanding its upstream capabilities.
Regulatory Approval and Strategic Expansion
The acquisition received the approval of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), allowing Oando to acquire 100% of the shares of NAOC. This acquisition not only increases Oando’s participating interest in key Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20% to 40% but also expands its ownership across all NEPL/NAOC/OOL Joint Venture assets, which include 40 discovered oil and gas fields, 24 of which are currently producing.
Infrastructure and Reserves
Oando’s acquisition includes significant infrastructure assets such as 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the KwaleOkpai power plants with a 960MW capacity. The deal also results in a nearly 98% increase in Oando’s total reserves, from 505.6 million barrels of oil equivalent (MMboe) to over 1 billion barrels, based on 2022 reserve estimates.
Financial and Strategic Implications for Oando PLC
This acquisition is expected to be immediately cash-generative, significantly enhancing Oando’s financial position and cash flows. Wale Tinubu, Group Chief Executive of Oando PLC, described the acquisition as the culmination of a decade-long effort that began with the purchase of ConocoPhillips’ Nigerian assets in 2014. He emphasized the importance of this acquisition for Oando and other indigenous energy players in shaping Nigeria’s upstream evolution.
However, Oando cautioned that the transaction involves inherent risks and uncertainties, such as changes in project parameters, fluctuations in crude oil prices, and risks associated with international operations. Despite these challenges, Oando remains optimistic about the potential for growth and value creation, particularly as it explores diversification into clean energy, agri-feedstock, and energy infrastructure.
Strategic Vision
Tinubu reiterated Oando’s commitment to optimizing the acquired assets while focusing on responsible practices, sustainable development, and contributing to Nigeria’s goal of boosting oil production. This acquisition represents a significant step forward in Oando’s strategy to lead in Nigeria’s energy sector.
