Oando Acquires Agip Oil Company

• …deal value at $783m

Oando Plc has announced complete acquisition of 100 percent shareholding interest in the Nigerian Agip Oil Company (NAOC) from the Italian energy company, Eni.

The deal is valued for a total consideration of $783 million comprised of consideration for the asset and reimbursement.

Oando’s acquisition of 100 percent of the shareholding interest in the Nigerian Agip Oil Company comes as former Vice President Atiku Abubakar accused President Bola Tinubu of turning Nigeria into a private enterprise, noting that the “future of Nigerians has been effectively mortgaged to President Bola Tinubu, his family, and associates.”

Wale Tinubu who is CEO of Oando Plc is close relation of President Tinubu. Oando recently sold its petrol stations to NNPC which is the sole importer of petrol into Nigeria.

The former vice president expressed fears that it will be nearly impossible to break the shackles of Tinubu from Nigeria, even after the president leaves office.

Meanwhile, Oando said in a statement at the NGX signed by Ayotola Jagun, Chief Compliance Officer and Company Secretary that, “This acquisition is a significant milestone in Oando’s long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.”

The transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 percent to 40 percent. It increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty discovered oil and gas fields, of which twenty-four are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.

Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98percent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe. The transaction is immediately cash generative and will contribute significantly to the cashflows of the company.

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Wale Tinubu, Group Chief Executive, Oando Plc said: “Today’s announcement is the culmination of ten years of toil, resilience, and an unwavering belief in the realisation of our ambition since the 2014 entry into the Joint Venture via the acquisition of Conoco-Philips Nigerian Portfolio. 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.

“With our assumption of the role of operator, our immediate focus is on optimising the assets’ immense potential, advancing production and contributing to our strategic objectives. This we will do while prioritizing responsible practices and sustainable development in ensuring a balanced approach to our host communities, and environmental stewardship as we complement the nation’s plan to boost production output”.