Oando Plc Successfully Acquires Nigerian Agip Oil Company for $783 Million

Oando PLC, Nigeria's leading energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange, on Thursday announced the successful completion of its acquisition of the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni.

The transaction, valued at $783 million, marks a major milestone in Oando's long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.

The acquisition includes a 100% shareholding interest in NAOC, which has been active in Nigeria since 1962. This deal increases Oando’s current participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20% to 40%.

Additionally, it enhances Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, which encompass forty discovered oil and gas fields, twenty-four of which are currently producing, approximately forty identified prospects and leads, twelve production stations, around 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai power plants with a total nameplate capacity of 960MW.

Based on 2022 reserves estimates, Oando’s total reserves have surged from 505.6 million barrels of oil equivalent (MMboe) to over 1 billion barrels, representing a 98% increase. The transaction is expected to be immediately cash generative, significantly enhancing Oando’s financial position and cash flows.

Wale Tinubu, Group Chief Executive of Oando PLC, commented, "Today's announcement is the culmination of ten years of toil, resilience, and an unwavering belief in the realization of our ambition since the 2014 entry into the Joint Venture via the acquisition of Conoco-Philips Nigerian Portfolio.

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."

Tinubu further emphasized Oando’s commitment to optimizing the acquired assets' potential while maintaining a focus on responsible practices, sustainable development, and contributing to Nigeria’s goal of boosting oil production.

He also highlighted the company's future plans to pursue strategic diversification opportunities within the broader energy sector, particularly in clean energy, agri-feedstock, energy infrastructure, and mining.

Despite the optimistic outlook, Oando has cautioned that the transaction involves inherent risks and uncertainties, including potential changes in project parameters, the future price of crude oil, and risks associated with international operations. Investors are advised to consider these factors when evaluating the company’s future prospects.