Lagos, Nigeria – Oando PLC, Nigeria’s leading energy solutions provider, has succesfully acquired a 100% shareholding interest in the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni. The landmark transaction, valued at $783 million, marks a significant milestone in Oando’s long-term strategy to enhance its upstream operations and solidify its standing in the Nigerian oil and gas sector.
“Today’s announcement is the culmination of ten years of toil, resilience, and an unwavering belief in the realization of our ambition since the 2014 entry into the Joint Venture via the acquisition of Conoco-Phillips Nigerian Portfolio,” said Wale Tinubu, Group Chief Executive of Oando PLC. “It is a win for Oando, and every indigenous energy player, as we take our destiny in our hands, and play a pivotal role in this next phase of the nation’s upstream evolution.”
The acquisition significantly boosts Oando’s participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20% to 40%. It also expands the company’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets, which include:
• 40 discovered oil and gas fields, with 24 currently in production.
• Approximately 1,490 kilometers of pipelines.
• Three gas processing plants.
• The Brass River Oil Terminal.
• The Kwale-Okpai power plants, with a total capacity of 960MW.
Based on 2022 reserves estimates, this transaction will nearly double Oando’s reserves, increasing by 493.6 million barrels of oil equivalent (MMboe) to reach a total of 1.0 billion MMboe.
“With our assumption of the role of operator, our immediate focus is on optimizing the assets’ immense potential, advancing production, and contributing to our strategic objectives,” Tinubu added. “This we will do while prioritizing responsible practices and sustainable development in ensuring a balanced approach to our host communities and environmental stewardship.”
Immediate Cash Flow Benefits
The transaction is expected to be immediately cash generative, significantly boosting Oando’s cashflows and supporting its broader strategic objectives.
Looking ahead, Tinubu emphasized the company’s commitment to further diversifying its portfolio: “We will continue to pursue strategic diversification opportunities within the broader energy sector that provide enhanced growth and value creation for our stakeholders, particularly in clean energy, the agri-feedstock sector, energy infrastructure, and mining.”
Oando PLC, listed on both the Nigerian Exchange Limited and the Johannesburg Stock Exchange, remains committed to its mission of harnessing Africa’s natural resources while contributing to the continent’s sustainable development
