Oando, a Nigerian energy company, has confirmed its acquisition of the Nigerian Agip Oil Company (NAOC), a subsidiary of the Italian energy giant Eni.
The agreement has been signed, and this move underscores the significant role that indigenous players will play in shaping Nigeria’s upstream sector.
NAOC holds interests in four onshore blocks, two onshore exploration leases, and two power plants in Nigeria.
These include Oil Mining Leases (OML) 60, 61, 62, and 63, as well as a stake in the Okpai 1 and 2 power plants with a combined capacity of 960 megawatts.
Oando acquires key assets, aims to boost production
NAOC has operational responsibility for two Onshore Exploration Leases (OPL) 282 and 135.
It’s worth noting that NAOC’s 5 percent participating interest in the Shell Production Development Company (SPDC) Joint Venture remains with Eni and is not part of this transaction.
Wale Tinubu, the Group Chief Executive of Oando PLC, expressed excitement about the agreement, highlighting the pivotal role that indigenous actors will play in Nigeria’s upstream sector’s future.
He sees this acquisition as an opportunity to enhance efficiency, optimize resource allocation, and significantly increase production.
Tinubu emphasized that the transaction aligns with Eni’s 2023-2026 plan, where upstream activities will complement the core strategy of organic growth through high-value inorganic activities.
However, it’s important to note that the completion of this transaction is subject to obtaining all necessary approvals from local and regulatory authorities.
Once finalized, this sale is expected to nearly double Oando’s reserves, bringing them to a total of 996 million barrels of oil equivalent.