TheCable

Oando Plc says it has reached an agreement with Eni, on the acquisition of a 100 percent stake in its subsidiary — Nigerian Agip Oil Company Limited (NAOC Ltd).

According to a statement filed on the Nigerian bourse, the completion of the transaction is subject to ministerial consent and other required regulatory approvals.

The transaction also expands Oando’s current participating interests in oil mining leases (OMLs) 60, 61, 62, and 63, from 20 percent to 40 percent.

The oil firm said the transaction also bolsters its ownership stake in all “NNPC Exploration and Production Limited (NEPL)/NAOC/OOL” joint venture assets and infrastructure.

The assets, according to the statement, include 40 discovered oil and gas fields (of which 24 are currently producing), approximately 40 identified prospects and leads, 12 production stations, and approximately 1,490 km of pipelines.

Others are three gas processing plants: the Brass River oil terminal, the Kwale-Okpai phases 1 and 2 power plants (with a total nameplate capacity of 960 megawatts), and associated infrastructure.

“Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will deliver a 98 percent increase,” the statement reads.

“The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90% interest in OPL 282 and 48% interest in OPL 135.
NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30%, Total Energies 10%, NAOC 5%, NNPC 55%) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.”

Commenting on the acquisition, Wale Tinubu, group chief executive at Oando Plc, said the synergies created by the acquisition will unlock unparalleled opportunities for the company to re-align expectations, enhance efficiency, optimise 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.”