Oando Plc has finalized the acquisition of Nigerian Agip Oil Company (NAOC), a subsidiary of Italian energy giant Eni, for a deal valued at $783 million. The company announced on Thursday through a statement issued by its Chief Compliance Officer and Company Secretary, Ayotola Jagun.
With this acquisition, Oando, a prominent energy solutions provider listed on the Nigerian Exchange Limited and the Johannesburg Stock Exchange, now holds 100% of the shareholding interest in NAOC, marking a significant milestone in the company’s strategic expansion within Nigeria’s oil and gas sector.
“This acquisition represents a pivotal moment in Oando’s long-term strategy to enhance its upstream operations and solidify its leadership position in the Nigerian energy landscape,” the company said.
The acquisition effectively doubles Oando’s participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63, increasing from 20% to 40%.
Additionally, Oando now has an enhanced stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, which include 40 discovered oil and gas fields—24 of which are currently producing—along with nearly 1,490 kilometres of pipelines, 12 production stations, three gas processing plants, the Brass River Oil Terminal, and the Kwale Okpai power plants (Phases 1 & 2) with a combined capacity of 960MW.
According to Oando, the acquisition will also significantly boost its reserves. “Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6 million barrels of oil equivalent (MMboe).
This transaction will increase our reserves by 98%, adding 493.6MMboe and bringing our total reserves to 1.0 billion boe,” the company noted.
The deal is expected to be immediately cash-generative, contributing significantly to Oando’s cashflows.
“This milestone is the result of a decade of perseverance, resilience, and a firm belief in realizing our ambitions since our 2014 entry into the Joint Venture through the acquisition of Conoco-Philips’ Nigerian portfolio,” said Wale Tinubu, Group Chief Executive Officer of Oando Plc.
He emphasized that this achievement is not just a win for Oando, but for all indigenous energy players. “As we assume the role of operator, our immediate focus is on optimizing the immense potential of these assets, advancing production, and aligning with our strategic objectives.
We will do this while prioritizing responsible practices and sustainable development, ensuring a balanced approach to our host communities and environmental stewardship, in line with the nation’s plan to boost production output.”
Looking ahead, Tinubu highlighted Oando’s commitment to pursuing strategic diversification within the broader energy sector, including clean energy, agri-feedstock, energy infrastructure, and mining, to drive growth and value creation for stakeholders.
