Italian oil giant ENI has finalized a deal with Oando, a Nigerian and Johannesburg Stock Exchange-listed energy solutions provider, for the acquisition of a full 100 percent stake in Eni’s subsidiary, Nigerian Agip Oil Company Limited (NAOC Ltd).
According to a statement filed on the Nigerian Stock Exchange, the completion of the transaction is subject to ministerial consent and other required regulatory approvals.
NAOC Ltd is a wholly-owned subsidiary that specializes in onshore oil & gas exploration and production in Nigeria, as well as power generation.
NAOC Ltd currently holds interests in four onshore blocks (OML 60, 61, 62, 63), operating on behalf of NAOC JV, and is involved in the Okpai 1 and 2 power plants with a combined capacity of 960MW. It also holds onshore exploration leases (OPL 282 and OPL 135). The participating interest in SPDC JV is not part of this transaction and will remain with Eni.
Following the completion of this transaction with Oando PLC, Eni will maintain its presence in Nigeria through Nigerian Agip Exploration (NAE) and Agip Energy and Natural Resources (AENR). Eni will continue to focus on offshore activities while retaining participation in both onshore and offshore operated assets, along with Nigeria LNG
This transaction will boost Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 percent to 40 percent and expand its ownership in all NEPL/NAOC/OOL Joint Venture assets, including numerous oil and gas fields, prospects, leads, production stations, pipelines, gas processing plants, and power plants. Oando will also enhance its exploration asset portfolio with a 90 percent interest in OPL 282 and a 48 percent interest in OPL 135.
Wale Tinubu CON, Group Chief Executive of Oando PLC, stated,
“The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align 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.”
