Integrated energy solutions provider Oando PLC has signed an $800 million loan document with pan-African financial institution the African Export-Import Bank (Afreximbank) to facilitate the acquisition of 100% of the shares of exploration and production (E&P) company, the Nigerian Agip Oil Company (NAOC).
Signed on 14 November, completion of the transaction will see Oando PLC’s current participation interest in Oil Mining License (OML) 60, 61, 62, and 63 – situated in the Northern Niger Delta – increase from 20% to 40%.
“The synergies created by this acquisition will unlock unparalleled opportunities for us to realign expectations, enhance efficiency, optimize resource allocation, and significantly increase production,” stated Oando PLC CEO, Wale Tinubu. “It is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.”
Subject to ministerial consent and other required regulatory approvals, the transaction is poised to increase Oando PLC’s ownership in all NAOC Joint Venture assets and infrastructure, which includes 40 oil and gas fields – 24 of which are producing -; 12 production stations; and approximately 1,490km of pipelines. Additional assets include three gas processing plants; the Brass River oil terminal; the 960 MW Kwale-Okpai power plant, and associated infrastructure.
The deal-signing comes after Oando PLC’s announcement on 2 September that it had reached an agreement with oil and gas supermajor Eni – the parent company of the NAOC – for the acquisition of 100% of the shares of the E&P company.