Italian company Eni has agreed to sell its Nigerian wholly-owned subsidiary Nigerian Agip Oil Company (NAOC), to Nigeria’s indigenous energy solutions provider Oando.

NAOC is focused on onshore oil and gas exploration and production in Nigeria. It is also engaged in power generation.

Currently, NAOC holds stakes in four onshore blocks comprising OML 60, 61, 62, 63; in two power plants, Okpai 1 and 2; and in two onshore exploration leases - OPL 282 and OPL 135.

The transaction, however, excludes NAOC's interest in Shell Production Development Company Joint Venture (SPDC JV) as it will be retained in Eni’s portfolio.

SPDC JV consists of Shell (30%), TotalEnergies (10%), NAOC (5%), NNPC (55%).

In a press statement, Eni said: “Participations in operated-by-others assets, both onshore and offshore, and Nigeria LNG will remain in [the] Eni portfolio too.”

Eni said it continue its presence in Nigeria through Nigerian Agip Exploration and Agip Energy and Natural Resources and will focus on operated offshore activities.

Oando group chief executive Wale Tinubu CON said: “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.”

The transaction is subject to ministerial consent and other regulatory approvals.

Most of the international oil majors, including Shell and Exxon Mobil, are considering divesting their onshore assets in Nigeria due to oil theft from pipelines and more focused exploration budgets, reported Reuters.