Oando PLC has finalized its acquisition of the Nigerian Agip Oil Company (NAOC), a subsidiary of the Italian energy firm Eni, for $783 million. This acquisition marks a significant step in Oando’s strategy to expand its upstream operations and strengthen its presence in Nigeria’s oil and gas sector.
The announcement, made by Oando’s Chief Compliance Officer and Company Secretary, Ayotola Jagun, on August 22, 2024, confirms that Oando now holds 100% ownership of NAOC. The acquisition was officially marked with a signing ceremony at The Peninsula Hotel in London, underscoring Oando’s position as a leading indigenous energy solutions provider in Nigeria.
The deal boosts Oando’s stakes in various oil mining licenses (OMLs) from 20% to 40% and increases its ownership in NEPL/NAOC/OOL Joint Venture assets. This includes forty discovered oil and gas fields, with twenty-four currently producing, as well as numerous prospects, production stations, pipelines, gas processing plants, and other significant infrastructure.
The transaction is anticipated to significantly enhance Oando’s cash flow, with reserves expected to rise from 505.6 million barrels of oil equivalent (MMboe) to 1 billion barrels, marking a 98% increase.
Wale Tinubu, Group Chief Executive Officer of Oando PLC, described the acquisition as a culmination of ten years of effort and resilience, reflecting the company’s ambition and strategic vision. He emphasized the company’s focus on optimizing asset potential, advancing production, and adhering to responsible and sustainable practices while contributing to Nigeria’s production goals.
Looking ahead, Oando plans to explore further strategic diversification in clean energy, agri-feedstock, energy infrastructure, and mining sectors, aiming for enhanced growth and value creation for stakeholders.