Oando Plc, (Oando), has announced an agreement with ENI for the acquisition of 100 per cent of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
The company which is listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange, is pleased to announce that the Completion of the transaction is subject to Ministerial Consent and other required regulatory approvals.
The transaction is set to increase Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent.
Oando in a statement said that the arrangements will increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include 40 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.
It said based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will deliver a 98 per cent increase.
The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90 per cent interest in OPL 282 and 48 per cent interest in OPL 135.
A Statement from the company said NAOC Ltd participating interest in SPDC JV like Shell Production Development Company
Joint Venture – operator Shell 30 per cent TotalEnergies 10 per cent, NAOC 5 per cent, NNPC 55 per cent is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.
Commenting Wale Tinubu CON, Group Chief Executive, Oando PLC said: “The synergies created by this acquisition will unlock unparalleled opportunities for us to realign 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.
Today’s announcement is 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.
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.”