Oando Acquires Nigerian Agip Oil Company for $783 Million
Oando PLC has successfully acquired the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni. This $783 million deal marks a significant milestone for Oando, doubling its stake in key oil fields and boosting its reserves.
Oando PLC, one of Nigeria’s leading energy companies, has completed a landmark acquisition by purchasing the Nigerian Agip Oil Company (NAOC) from Eni for $783 million. This strategic move is set to enhance Oando’s position in the oil and gas sector, significantly increasing its assets and production capacity. The acquisition is a testament to Oando’s commitment to expanding its operations and contributing to Nigeria’s energy landscape.
The Nigerian Agip Oil Company (NAOC) is a major player in Nigeria’s oil and gas industry. It operates several oil mining leases (OMLs) and is involved in the exploration, production, and transportation of oil and gas. NAOC’s assets include 40 discovered oil and gas fields, 24 of which are currently producing, as well as extensive infrastructure such as pipelines, production stations, and gas processing plants.
Oando’s acquisition of NAOC includes a 100% shareholding interest, effectively doubling Oando’s participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%. This deal also increases Oando’s ownership stake in all joint venture assets and infrastructure, including:
- 40 oil and gas fields: 24 currently producing.
- 1,490 km of pipelines: Essential for transporting oil and gas.
- 12 production stations: Key facilities for processing oil and gas.
- 3 gas processing plants: Crucial for refining natural gas.
- Brass River Oil Terminal: A major export terminal.
- Kwale-Okpai power plants: With a total capacity of 960MW.
This acquisition is a game-changer for Oando. It significantly boosts the company’s oil and gas reserves, increasing them by 98% to approximately one billion barrels of oil equivalent. The deal is expected to be immediately cash-generative, contributing to Oando’s cash flows and enhancing its financial stability. With this acquisition, Oando is well-positioned to optimize these assets, advance production, and achieve its strategic objectives.
The acquisition has several positive implications for Nigeria:
- Increased Production: With Oando’s expertise, the production from these fields is expected to increase, boosting Nigeria’s oil output.
- Economic Growth: The deal will contribute to the country’s economy by generating revenue and creating jobs.
- Energy Security: Enhanced production capacity will improve Nigeria’s energy security and reduce dependence on imports.
- Local Content Development: Oando’s commitment to responsible practices and sustainable development will benefit local communities and promote environmental stewardship.
Oando’s acquisition of the Nigerian Agip Oil Company is a significant milestone in the Nigerian oil and gas industry. This $783 million deal not only strengthens Oando’s position but also promises to bring substantial benefits to Nigeria’s economy and energy sector. As Oando takes on the role of operator, the focus will be on optimizing the assets’ potential, advancing production, and contributing to the country’s strategic objectives.
