Nigerian Billionaire Excited as Company Completes Takeover of Agip Oil for $783m

• Oando PLC has completed the acquisition of Nigerian Agip Oil Company (NAOC) from Eni after ten years
• The transaction will help actualise Oando’s dream of upscaling its upstream operations and strengthen its position in the Nigerian oil and gas sector
• CEO Wale Tinubu expressed his excitement that the deal is completed and unveiled the benefits to Oando

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Oando Plc said it has completed the acquisition of 100% shareholding interest in the Nigerian Agip Oil Company (NAOC) from Eni for a total consideration of $783 million, including consideration for the asset and reimbursement.

The deal was announced in a statement signed by Oando’s chief compliance officer and company secretary, Ayotola Jagun, and released on the Nigerian Exchange (NGX) Limited on Thursday, August 22, 2024.

Read also

Nigerian billionaire Abdulsamad Rabiu loses billion of dollar as naira dips in value

According to the statement, the deal with AGIP will increase Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%

Part of the statement reads:

"The transaction will also increase Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture Assets and infrastructure which include forty discovered oil and gas fields, of which 24 are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the KwaleOkpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.”

It added that 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; and the transaction is immediately cash-generative and will contribute significantly to the cash flows of the company

Read also

After Dangote, Another refinery secures license to begin operation

Oando CEO speaks on Agip Oil

Wale Tinubu, the Group Chief Executive of Oando Plc, expressed excitement about the deal and outlined plans for the future.

He said:

“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.”

According to Tinubu, with our assumption of the operator role, our immediate focus is 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.”

Read also

NNPC reacts as filling stations adjust petrol pump price amid fuel scarcity

Looking to the future, Oando CEO assured:

“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.”

TotalEnergies reacts to report of leaving Nigeria

Legit.ng reported that with its $860 million sale and purchase agreement (SPA) with Chappal Energies, TotalEnergies declared that it would not be leaving the Niger Delta.

This occurred after TotalEnergies EP Nigeria, a subsidiary of the parent business, signed a SPA with Chappal Energies to sell its 10% stake in the SPDC JV licenses in Nigeria.

Dr. Charles Ebereonwu, country communication manager of TotalEnergies in Nigeria, stated that the company is staying in the Niger Delta despite the $860 million SPA deal with Chappal Energies.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng