Integrated energy solutions provider Oando PLC has acquired energy major Eni’s 100% stake in the Nigerian Agip Oil Company (NAOC) for a sum of $783 million. Aligning with Oando’s long-term strategy to strengthen its upstream asset portfolio in Nigeria, the transaction increases Oando’s estimated reserves in the country from 505.6 million barrels to one billion barrels of oil equivalent, representing a 98% increase.
Through its various joint ventures, NAOC has a strong slate of upstream interests, including 40 discovered oil and gas fields – 24 of which are currently in production – and 40 identified prospects and leads. Additionally, the company holds interests in 12 production stations; 3 gas processing plants; up to 1,490km of pipelines; the Brass River Oil Terminal; the 960 MW Kwale-Okpai Phase 1 and 2 power plants and associated infrastructure. With the acquisition, Oando assumes control of these interests while boosting its interests in OML 60, 61, 62 and 63 from 20% to 40%
“With our assumption of the role of operator, our immediate focus is on optimizing the assets’ immense potential, advancing production and contributing to our strategic objectives. Looking to the future, we will continue to pursue diversification opportunities within the broader energy sector that provide enhanced growth and value creation for our stakeholders, particularly in clean energy, the agri-feedstock sector as well as energy infrastructure and mining,” Wale Tinubu, Group Chief Executive of Oando, said in a statement.
