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The Nigerian oil firm oando plc has finalized the takeover of Nigerian Agip Oil Company (NAOC), purchasing the entire share capital from Eni, the Italian energy conglomerate, in a whopping $783 million transaction. This acquisition cements Oando’s position as a major player in the industry.
According to Ayotola Jagun, Chief Compliance Officer and Company Secretary, the acquisition significantly bolsters Oando Plc’s stake in OMLs 60, 61, 62, and 63, doubling its participating interests from 20% to 40%. This substantial increase solidifies the company’s presence in these key oil mining leases.
Oando Plc’s ownership stake has increased substantially in the NEPL/NAOC/OOL Joint Venture’s extensive portfolio of assets, including 40 discovered oil and gas fields, of which 24 are currently in production. The company’s interests have also grown in 40 identified prospects and leads, 12 production stations, and approximately 1,490 kilometers of pipelines. Additionally, Oando Plc now has a greater share in three gas processing plants, the strategic Brass River Oil Terminal, and the Kwale-Okpai power plants, boasting a combined capacity of 960MW.
‘Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98% increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe, adding that the transaction is immediately cash generative and will contribute significantly to the cash flows of the Company’, it added.
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In a statement, Wale Tinubu, Group Chief Executive Officer of Oando Plc, commented: ‘Today’s announcement is the culmination of ten 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.
‘Looking to the future, 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.’