A Nigerian oil firm, Oando Plc has acquired a 100 per cent stake in the Nigerian Agip Oil Company from Italian energy firm, Eni, in a deal valued at $783m.
According to the statement by Oando, the transaction significantly increases its participating interest in key oil mining leases 60, 61, 62, and 63 from 20 per cent to 40 per cent, effectively doubling its stake in the NEPL/NAOC/OOL Joint Venture.
“We are pleased to announce the successful completion of the acquisition of 100 per cent of the shareholding interest in the Nigerian Agip Oil Company from the Italian energy company, Eni, for a total consideration of $783m comprising consideration for the asset and reimbursement (the “transaction”),” the company said.
It stated that the newly acquired assets include 40 oil and gas fields, with 24 currently producing, as well as 1,490km of pipelines; 12 production stations; three gas processing plants; the Brass River Oil Terminal; and the Kwale-Okpai power plants, with a combined capacity of 960MW.
It explained that as a result of the acquisition, its total reserves has surged by 98 per cent, from 505.6 million barrels of oil equivalent to one billion barrels of oil equivalent, based on 2022 estimates.
It added that the deal was expected to be immediately cash-generative, providing a substantial boost to its revenue and cash flow.
“Based on 2022 reserves 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 stated.
The report by Punch newspaper on Friday quoted the Group Chief Executive of Oando, Wale Tinubu, as saying that the acquisition was a culmination of a decade-long journey that began with the company’s 2014 entry into the Joint Venture through the acquisition of ConocoPhillips Nigerian assets.
“This is a major win for Oando and the entire indigenous energy sector. With full control of these assets, we are in a stronger position to drive Nigeria’s upstream growth while ensuring sustainable practices in our host communities,” Tinubu said.
GIK/APA