Oando Plc (NGX: OANDO) has reiterated that it’s acquisition of Nigerian Agip Oil Company (NAOC) followed the stipulated regulatory timeline.
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The company listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange in a regulatory filing on Monday addressed recent allegations concerning accelerated timelines for completing the recent NAOC/Oando Transaction raised on various print and online digital media platforms.
Investogist in August 2024 reported that Oando Plc had completed the US$783 million acquisition of Nigerian Agip Oil Company (NAOC), a unit of Italy’s oil supemrajor Eni.
The purchase lifts the company’s stakes in oil mining leases (OMLs) 60, 61, 62 and 63 to 40 per cent from 20 per cent.
“It increases Oando’s ownership stake in all NEPL/NAOC/OOL joint venture assets and infrastructure which include forty discovered oil fandango gas fields, of which twenty-four are currently producing, approximately forty identified prospects and leads, twelve production stations, 1,490 km of pipelines,” the statement said.
The energy company will also take ownership of three gas-processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1&2 power plants (with a total nameplate capacity of 960MW) and associated infrastructure.
The acquisition will also increase Oando’s 2022 reserve estimates by 98% from 505.6MMboe, to 1.0Bnboe.
Oando had in September disclosed that it had reached an agreement with Eni for the acquisition of 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
Full Statement
Oando PLC (referred to as “Oando” or the “Company”), Nigeria’s leading energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange wishes to address recent allegations concerning accelerated timelines for completing the recent NAOC/Oando Transaction raised on various print and online digital media platforms.
We note the extensive response directed at these allegations by the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”, “the Commission”) via its Press Statement of Monday, 26 August 2024.
As a law abiding Company, Oando PLC wishes to formally state its position in response to these malicious, baseless and false insinuations and allegations, that have been deliberately conceived and persistently peddled by certain individuals and their agents. These actions are not only damaging to our reputation but also misleading to the public.
Regulatory/Legal Framework under the Petroleum Industry Act (“PIA”)
The PIA provides a comprehensive regulatory framework for the transfer of upstream oil and gas assets. The responsibility for obtaining regulatory consent from the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”, “the Commission”) lies with the Asset Owner/Assignor, in this case, NAOC.
Specifically, Section 95 of the PIA provides that the holder of a petroleum prospecting licence or petroleum mining lease shall not assign, novate or transfer his licence or lease or any right, power or interest, or a shareholder of an incorporated joint venture shall not sell or transfer its shares without prior written consent of the Minister, which shall be granted upon the recommendation of the Commission.
Timelines for the NAOC/Oando Transaction
NAOC, as Assignor, notified the NUPRC of its intention to carry out the transaction via its letter to the NUPRC dated 16th May 2023 and submitted its formal application to the NUPRC by letter dated 7th November 2023. Further to the recommendation by the NUPRC to the Minister, the NUPRC via its letter dated 12th July 2024 communicated the grant of Ministerial Consent over the assignment transaction in accordance with the relevant laws.
The timeframe under the PIA, from receipt of the application from the Assignor to the grant of Ministerial Consent is clearly stipulated in the law to be a total of 180 days.
Following a rigorous, transparent and detailed due diligence process and with the effort and co-operation of all parties to the transaction the NAOC/Oando approval process was granted Ministerial Consent after a total period of 248 days from submission of the application by NAOC to the Commission.
We want to make it unequivocally clear that Oando PLC will not tolerate any attempts to tarnish our image or disrupt our operations through baseless and defamatory claims. We are fully committed to upholding our integrity and maintaining transparency in all our dealings. To this end, the Company has instructed its legal team to closely monitor the situation and gather evidence against those involved in these malevolent activities as we intend to seek legal redress against any individual or entity found to be responsible for spreading false information against the
Company and its management.
Oando PLC values the trust and confidence of its stakeholders and is dedicated to maintaining open and honest communication. We assure all stakeholders that the NAOC/Oando Transaction was conducted with the utmost integrity and adherence to regulatory standards and encourage the public and all stakeholders to disregard all rumours and unverified information and rely solely on official communications from Oando PLC.
For further information, please contact:
Ayotola Jagun
Company Secretary
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6159
ajagun@oandoplc.com
For: Oando PLC
Ayotola Jagun (Ms.)
Chief Compliance Officer and Company Secretary
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
