Oando Plc (NGX: OANDO) says it has reached an agreement with Eni for the acquisition of 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
The company disclosed this on Monday in a document published on the Nigerian Exchange. According to the document, the completion of the transaction is subject to Ministerial Consent and other required regulatory approvals.
Transaction Highlights:
- The transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.
- It increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty discovered oil and gas fields, of which twenty-four are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490km of pipelines, 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.
- Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will deliver a 98% increase.
- The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90% interest in OPL 282 and 48% interest in OPL 135.
- NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30%, Total Energies 10%, NAOC 5, NNPC 55% is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.
Commenting Wale Tinubu CON, Group Chief Executive, Oando PLC said: “The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production. Furthermore, it is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.
“Today’s announcement is not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian upstream sector. Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders and shareholders.”
At the time of writing this report, OANDO shares price is up 9.91%, trading at N6.10 per share on the floor of the Nigerian Exchange.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.