- Oando PLC has finalised its $783 million purchase of Nigerian Agip Oil Company (NAOC) from Eni, enhancing its position in Nigeria’s oil and gas sector.
- The acquisition increases Oando’s stake in key oil blocks and infrastructure, nearly doubling its oil reserves to over 1 billion barrels.
Oando PLC has acquired the Nigerian Agip Oil Company (NAOC) from Eni, the Italian energy giant, for $783 million. This acquisition marks a significant milestone in Oando’s strategic growth plan and will enhance its position in Nigeria’s oil and gas sector.
The deal, finalised with the approval of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), grants Oando complete control over NAOC, which specialises in Nigeria’s onshore oil and gas exploration, production, and power generation. This transaction boosts Oando’s stake in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20% to 40%, increasing its ownership of NEPL/NAOC/OOL Joint Venture assets.
These assets include 40 discovered oil and gas fields, with 24 currently in production. Oando’s expanded infrastructure holdings now feature approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai power plants, which have a combined capacity of 960 MW. Based on 2022 estimates, the acquisition has nearly doubled Oando’s total reserves from 505.6 million barrels of oil equivalent (MMboe) to over 1 billion barrels.
The acquisition is expected to immediately positively impact Oando’s cash flow, significantly strengthening the company’s financial position. Wale Tinubu, Group Chief Executive of Oando PLC, described the acquisition as a significant achievement built on Oando’s strategic move in 2014 when it acquired ConocoPhillips’ Nigerian assets.
He emphasised that this acquisition aligns with Oando’s goal to play a vital role in Nigeria’s upstream sector while adhering to sustainable practices and contributing to the country’s oil production targets.
Tinubu expressed confidence in the acquisition’s benefits but acknowledged the risks. These include potential changes in project parameters, fluctuations in crude oil prices, and challenges associated with international operations. Oando has advised investors to consider these uncertainties when assessing prospects.
Despite these challenges, Oando remains optimistic about the acquisition’s potential to drive growth and create value. The company is also exploring diversification into clean energy, agri-feedstock, and energy infrastructure as part of its broader strategy.