Oando acquires 100% Stake in Nigerian Agip Oil Company Limited (NAOC), Doubling Oil Reserves.
Lagos, Nigeria – In a groundbreaking deal, Oando Plc has recently announced an agreement with ENI to acquire the full 100 per cent ownership stake in Nigerian Agip Oil Company Limited (NAOC), a move that is set to significantly bolster Oando’s oil reserves.
According to a regulatory filing made by Oando, this strategic acquisition will substantially increase the company’s participating interests in OMLs 60, 61, 62, and 63 from the current 20 per cent to a robust 40 per cent. This bold step has already made waves in the financial market, as Oando’s share price experienced an impressive surge of 9.91 per cent, closing at N6.10 per share on the Nigerian Exchange (NGX).
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The transaction, as outlined by Oando, encompasses a broader scope, including the augmentation of its ownership stake in all NEPL/NAOC/OOL Joint Venture (JV) assets and infrastructure. This notably includes 40 oil and gas fields, with 24 of them currently in production, along with approximately 40 identified prospects and leads.
Furthermore, the joint venture assets consist of 12 production stations, an extensive network of approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai phases 1 & 2 power plants, boasting a total nameplate capacity of 960MW, and associated infrastructure.
In terms of reserves, this transaction, based on 2021 estimates, is poised to bolster Oando’s total reserves by a remarkable 98 per cent, bringing the total to an impressive 503.3 million barrels of oil equivalent (MMboe).
This acquisition will also diversify Oando’s exploration asset portfolio through the acquisition of a 90 per cent interest in OPL 282 and a 48 per cent interest in OPL 135.
It’s worth noting that the participating interest of NAOC in SPDC JV-Shell Production Development Company Joint Venture, where Shell holds 30 per cent, TotalEnergies 10 per cent, NAOC 5.0 per cent, and NNPC 55 per cent, will not be part of this transaction and will remain in ENI’s portfolio.
However, the completion of this transformative transaction is contingent on Ministerial Consent and other necessary regulatory approvals.
Mr. Wale Tinubu, the Group Chief Executive of Oando Plc, expressed his enthusiasm for the synergies created by this acquisition, emphasizing its potential to realign expectations, enhance efficiency, optimize resource allocation, and significantly boost production. Tinubu asserted that this acquisition aligns seamlessly with Oando’s overarching strategy of acquiring, enhancing, appraising, and efficiently developing reserves.
In his statement, Tinubu underscored the significance of this milestone not only for Oando but for indigenous players in the Nigerian upstream sector, emphasizing the pivotal role they will play in shaping its future. He expressed his eagerness to close the transaction and unlock the full potential of the enhanced platform to benefit local communities, stakeholders, and shareholders alike.
This historic deal reflects Oando’s commitment to advancing the energy sector in Nigeria and signifies a significant leap forward in the company’s journey of growth and development.
