Nigerian energy company Oando has completed the acquisition of the entire shareholding interest in the Nigerian Agip Oil Company (NAOC) from Eni.
This move strengthens Oando's position in Nigeria's oil and gas sector and is aligned with its long-term growth strategy.
The transaction, valued at $783m, was first announced in September 2023.
The acquisition not only doubles Oando's participating interests in Oil Mining Leases 60, 61, 62, and 63 from 20% to 40% but also increases its stake in all NEPL/NAOC/OOL joint venture assets.
These assets include 40 oil and gas fields, 24 of which are currently producing, and an array of infrastructure, including 1,490km of pipelines, 12 production stations, and three gas processing plants.
Oando's total reserves, based on 2022 estimates, stood at 505.6 million barrels of oil equivalent (mboe).
With this acquisition, the company's reserves are set to increase by 98%, adding 493.6mboe, and bringing the total to approximately one billion barrels of oil equivalent.
In addition, the deal is expected to be immediately cash-generative and will contribute to Oando's cashflows.
Oando group chief executive Wale Tinubu CON said: “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.
"Looking to the future, we will continue to pursue strategic diversification opportunities within the broader energy sector that provide enhanced growth and value creation for our stakeholders, particularly in clean energy, agri-feedstock sector, as well as energy infrastructure and mining.”
For Eni, the divestment aligns with its strategy to streamline its upstream activities by focusing on strategic assets and shedding non-core ones.
The Italian energy giant will retain a 5% participating interest in the Shell Production Development Company Joint Venture and will continue its involvement in Nigeria through deepwater projects and the Nigeria LNG.
