- Oando Plc has completed the acquisition of a 100 per cent shareholding interest in Nigerian Agip Oil Company from Eni
- Eni received approval from the Nigerian upstream petroleum regulator in July
- Eni’s sale of Agip to Oando follows a current trend among IOCs to divest stakes to Nigerian energy players
Oando Plc has taken over Nigerian Agip Oil Company (NAOC) from Eni following the acquisition of a 100 per cent shareholding interest in the company for a total consideration of $783 million, which comprises consideration for the asset and reimbursement.
This was contained in a statement sent to the Nigerian Exchange (NGX) Limited on Thursday, August 22, by Oando’s Chief Compliance Officer and Company Secretary, Ms Ayotola Jagun.
In the statement, Oando noted that the acquisition marks a milestone in the company’s long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.
It read, “The transaction will also increase Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include 40 discovered oil and gas fields, of which 24 are currently producing, approximately 40 identified prospects and leads, 12 production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale Okpai phases 1 and 2 power plants (with a total nameplate capacity of 960 megawatts (MW) and associated infrastructure.”
The statement added that based on 2022 reserve estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe.
It noted that the transaction will generate immediate cash and contribute significantly to the company's cash flows.
Oando Plc’s Group Chief Executive Officer, Wale Tinubu, said the acquisition is the result of years of hard work and a win for indigenous energy players as they take charge of the evolution of Nigeria’s upstream sector.
He said, “Today’s announcement is the culmination of 10 years of toil, resilience and an unwavering belief in the realisation of our ambition since the 2014 entry into the Joint Venture via the acquisition of Conoco-Philips Nigerian Portfolio.
“It is a win for Oando and every indigenous energy player as we take our destiny in our hands and play a pivotal role in this next phase of the nation’s upstream evolution.
“With our assumption of the role of operator, our immediate focus is on optimising the assets’ immense potential, advancing production and contributing to our strategic objectives.
“This we will do while prioritising responsible practices and sustainable development in ensuring a balanced approach to our host communities and environmental stewardship as we complement the nation’s plan to boost production output.
“We will continue to pursue strategic diversification opportunities within the broader energy sector that provide enhanced growth and value creation for our stakeholders, particularly in clean energy, agri-feedstock sector, as well as energy infrastructure and mining.”
With the acquisition, Oando’s current participating interests in OMLs 60, 61, 62 and 63 have increased from 20 per cent to 40 per cent.
Eni had received approval from NUPRC to sell NAOC to Oando
In July this year, Eni, an Italian oil company, said it had received approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to sell NAOC to Oando.
This was also confirmed by the Chief Executive Officer of NUPRC, Gbenga Komolafe.
In a statement on its official website, Eni said the five per cent stake of the company in the Shell Production Development Joint Venture (SPDJV) was excluded from the transaction and will remain part of its portfolio.
Eni said while NAOC focuses on onshore oil exploration and production as well as power generation in Nigeria, it will focus instead on the onshore, deepwater and liquified natural gas (LNG) aspects of the oil and gas industry.
Before the announcement, Eni’s decision to sell NAOC to Oando in September 2023 was initially halted by the Nigerian National Petroleum Corporation (NNPC) Limited, insisting that Eni did not get the necessary approvals from regulatory bodies to sell its assets in Nigeria.
The corporation added that the sale of NAOC’s assets to Oando without its consent is a breach of the Joint Operating Agreement it signed in July 1991 relating to the NAOC/NEPL/OOL Joint Venture.
Like Eni like Shell, ExxonMobil, Equinor
Eni’s sale of NAOC to Oando replicates the current trend among International Oil Companies (IOCs) like Shell, ExxonMobil, and Equinor to divest from Nigeria’s onshore sector after many years of operation, allowing local energy players to run the show.
Shell had announced its agreement to sell its 30 per cent stake in SPDC to a local consortium for over $2.4 billion to streamline its portfolio and direct disciplined investments towards deepwater and integrated gas ventures in Nigeria.
In May 2024, the NNPCL signed a settlement agreement for the divestment of ExonnMobil’s stake in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Plc.
Seplat, in February 2022, announced an agreement to acquire ExxonMobil’s 40 per cent stake in MPNU. The proposed acquisition was, however, declined by the NUPRC due to “overriding national interest.”
Earlier this year, Equinor Nigeria Energy Company (ENEC) sold its oil stake in Nigeria to Chappal Energies. ENEC owned about 54 per cent of OML 128, an oil and gas lease which also includes a share in the Agbami oil field operated by Chevron.
IPMAN appeals to FG to intervene as NNPCL withholds fuel supplies
Meanwhile, TheRadar reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mosimi Depot in Ogun State requested the Nigerian National Petroleum Corporation Limited (NNPCL) to supply petroleum products totalling N75.142 billion, with payments having been completed by its members since June.
IPMAN, Mosimi Depot Chairman, Otunba Femi Adelaja, during a press briefing, said his members have already made payments for the products through the Lagos Private Depot Owners (PDO) since June but the NNPCL was yet to supply the products.
