Oando Plc has successfully acquired the Nigerian Agip Oil Company (NAOC) in a deal worth $783 million. This acquisition was officially announced on Thursday in a statement issued by the company’s Chief Compliance Officer and Company Secretary, Ayotola Jagun.
As a result of this transaction, Oando, which is listed on both the Nigerian Exchange Limited and the Johannesburg Stock Exchange, now owns 100 percent of NAOC’s shareholding interest. The seller, Eni, is a well-known Italian energy company.
For Oando, a prominent energy solutions provider in Nigeria, this acquisition marks a significant step forward in its strategy to expand its upstream operations and bolster its position in the Nigerian oil and gas industry. According to the company’s statement, the acquisition increases Oando’s participating interests in OMLs 60, 61, 62, and 63 from 20 percent to 40 percent.
Additionally, Oando now has a greater stake in the NEPL/NAOC/OOL Joint Venture assets, which include forty discovered oil and gas fields—twenty-four of which are currently in production—along with about forty identified prospects and leads. The joint venture also includes twelve production stations, approximately 1,490 kilometers of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai phases 1 & 2 power plants, which together have a nameplate capacity of 960MW, as well as associated infrastructure.
Based on 2022 reserve estimates, Oando’s total reserves stood at 505.6 million barrels of oil equivalent (MMboe). The acquisition is set to deliver a substantial 98 percent increase of 493.6MMboe, bringing Oando’s total reserves to 1.0 billion barrels of oil equivalent (Bnboe), according to the company.
The transaction is expected to be immediately cash-generative, significantly boosting the company’s cash flows. Group Chief Executive Officer of Oando Plc, Wale Tinubu, commented on the acquisition, highlighting that it represents the culmination of a decade of effort, resilience, and an unwavering belief in achieving their ambitions since entering the Joint Venture in 2014 through the acquisition of Conoco-Philips’ Nigerian Portfolio.
“This is a victory not just for Oando, but for all indigenous energy players as we take control of our future and play a critical role in the next phase of the nation’s upstream evolution,” Tinubu stated. “As we assume the role of operator, our immediate focus is on maximizing the assets’ vast potential, advancing production, and achieving our strategic goals. We will do this while ensuring responsible practices and sustainable development, maintaining a balanced approach with our host communities, and upholding environmental stewardship as we contribute to the nation’s plans to increase production output.”
Looking ahead, Oando plans to continue exploring strategic diversification opportunities within the broader energy sector, aiming for enhanced growth and value creation for its stakeholders. This includes potential ventures into clean energy, the agri-feedstock sector, energy infrastructure, and mining.
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