Oando Acquires Nigerian Agip Oil Company (NAOC) for $783 Million

Oando PLC (“Oando” or the “Company”), recognized as Nigeria’s premier energy solutions provider and listed on both the Nigerian Exchange Limited and the Johannesburg Stock Exchange, is delighted to announce the successful acquisition of 100% of the shareholding interest in the Nigerian Agip Oil Company (NAOC) from the Italian energy firm, Eni, for a total consideration of US$783 million, which includes both the asset purchase and reimbursement (the “Transaction”).

This acquisition marks a pivotal achievement in Oando‘s long-term strategy aimed at enhancing its upstream operations and solidifying its presence in the Nigerian oil and gas industry.

Transaction Highlights

The Transaction elevates Oando’s participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.
It expands Oando’s ownership in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, which encompass forty discovered oil and gas fields, with twenty-four currently in production, approximately forty identified prospects and leads, twelve production stations, around 1,490 km of pipelines, three gas processing facilities, the Brass River Oil Terminal, and the Kwale-Okpai phases 1 & 2 power plants (with a combined nameplate capacity of 960MW), along with associated infrastructure.
According to 2022 reserves estimates, Oando’s total reserves are recorded at 505.6MMboe, and this transaction is expected to yield a 98% increase of 493.6MMboe, raising the total reserves to 1.0Bnboe.
The Transaction is immediately cash-generative and is anticipated to significantly enhance the Company’s cash flows.

Wale Tinubu CON, Group Chief Executive of Oando PLC, remarked on the recent announcement, stating:

“This announcement represents the culmination of a decade of hard work, perseverance, and a steadfast commitment to realizing our vision since we entered the Joint Venture in 2014 through the acquisition of Conoco-Philips’ Nigerian Portfolio. It signifies a victory for Oando and all local energy stakeholders as we take control of our future and play a crucial role in the next phase of the nation’s upstream development. As we step into the operator role, our primary focus will be on maximizing the significant potential of these assets, enhancing production, and aligning with our strategic goals. We are committed to doing this while emphasizing responsible practices and sustainable development, ensuring a balanced relationship with our host communities and environmental stewardship, thereby supporting the nation’s objective to increase production output.

Looking ahead, we will persist in seeking strategic diversification opportunities within the wider energy sector that will foster growth and value creation for our stakeholders, particularly in the areas of clean energy, agri-feedstock, energy infrastructure, and mining.”