Oando Plc has acquired a 100 per cent stake in the Nigerian Agip Oil Company from Italian energy firm, Eni, in a deal valued at $783m.
In a corporate notice filed on the Nigeria Exchange Limited on Thursday, Oando noted the acquisition aligned with its strategy to bolster its upstream operations in the country’s oil and gas industry.
According to the firm, the transaction significantly increases its participating interest in key oil mining leases 60, 61, 62, and 63 from 20 per cent to 40 per cent, effectively doubling its stake in the NEPL/NAOC/OOL Joint Venture.
“We are pleased to announce the successful completion of the acquisition of 100 per cent of the shareholding interest in the Nigerian Agip Oil Company from the Italian energy company, Eni, for a total consideration of US$783m comprised of consideration for the asset and reimbursement (the “transaction”).”
The newly acquired assets include 40 oil and gas fields, with 24 currently producing, as well as 1,490 kilometres of pipelines; 12 production stations; three gas processing plants; the Brass River Oil Terminal; and the Kwale-Okpai power plants, with a combined capacity of 960MW.
Oando stated that, as a result of the acquisition, its total reserves had surged by 98 per cent, from 505.6 million barrels of oil equivalent to one billion barrels of oil equivalent, based on 2022 estimates.
It added that the deal was expected to be immediately cash-generative, providing a substantial boost to its revenue and cash flow.
“Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe,” It stated.
Speaking on the deal, the Group Chief Executive of Oando, Wale Tinubu, described it as a culmination of a decade-long journey that began with the company’s 2014 entry into the Joint Venture through the acquisition of ConocoPhillips Nigerian assets.
“This is a major win for Oando and the entire indigenous energy sector. With full control of these assets, we are in a stronger position to drive Nigeria’s upstream growth while ensuring sustainable practices in our host communities,” Tinubu stated.
He added that Oando’s immediate focus would be on maximising the potential of the acquired assets, increasing production, and maintaining a balance between operational efficiency and environmental stewardship.
Last month, the Nigerian Upstream Petroleum Regulatory Commission approved the sale of Nigerian Agip Oil Company from Eni to Oando.