"To Increase Production": Tinubu Speaks on Oando's 100% Share Acquisition of Agip Oil
- Oando Plc has struck a deal with Eni Plc for the acquisition of 100% shares in Agip Oil
- The transaction completion depends on ministerial clearance and other necessary regulatory approvals
- According to a notice by the oil company, the deal will tighten Oando’s grip in OMLs 60, 61, 62, and 63
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Oando Plc has disclosed that an agreement has been struck with Integrated Energy Company, Eni regarding the acquisition of a 100% share in its subsidiary, Nigerian Agip Oil Company Limited (NAOC Ltd).
The completion of the transaction is subject to ministerial clearance and other necessary regulatory approvals, according to a statement posted on the Nigerian stock exchange.
Source: UGC
This is coming after Oando Plc reported a net profit of N34.7 billion for the 2021 fiscal year. The positive outcome marks a significant recovery from the N140.7 billion loss after tax recorded in the previous year.
Legit.ng earlier reported that Nigerian National Petroleum Company Limited (NNPCL) acquired all 380 Oando retail outlets, aviation and gas brands nationwide from OVH Energy.
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Deal increases Oando’s grip in OMLs 60, 61, 62, and 63
Additionally, the purchase increases Oando's existing 20 percent to 40 percent participating interests in OMLs 60, 61, 62, and 63.
The oil company said the deal increased its ownership position in all infrastructure and assets owned by the joint venture between NNPC Exploration and Production Limited (NEPL), NAOC, and OOL.
The assets included in the statement comprise 12 production stations, 1,490 km of pipelines, 40 identified prospects and leads, 40 discovered oil and gas fields (of which 24 are actively producing), and 40 discovered oil and gas fields.
The Brass River oil port, the Kwale-Okpai phases 1 and 2, the power plants (with a combined nameplate capacity of 960 megawatts), and related infrastructure are among the other three gas processing facilities.
The statement reads in part:
Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will deliver a 98 percent increase.
The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90% interest in OPL 282 and 48% interest in OPL 135.
Meanwhile, it emphasised that NAOC Ltd.'s participation in SPDC JV—operated by Shell 30%, Total Energies 10%, NAOC 5%, and NNPC 55%—is not included in the transaction's boundaries and would be kept in Eni's portfolio.
Oando Plc's global chief executive, Wale Tinubu, stated that the acquisition's synergies will give the business unmatched opportunity to realign expectations, improve efficiency, optimise resource allocation, and considerably boost production.
He added that the deal is in alignment with the company's strategy of acquiring, enhancing, appraising, and efficiently developing reserves.
According to him, the development is significant not just for Oando's future, but it also highlights the significance of the role that indigenous actors will play in the development of Nigeria's upstream industry.
He said:
Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders and shareholders.
Oando MD speaks on electric buses and routes along Lagos roads
Legit.ng earlier reported that Oando Clean Energy Limited, an arm of Oando Plc owned by Wale Tinubu, said its newly acquired electric buses could run about 280km on full battery charge on Lagos roads.
In April this year, the company delivered an undisclosed number of electric vehicles from Yuntong Bus, a Chinese car manufacturing company.
The company signed an MoU with the Lagos State Government via the Lagos Metropolitan Area Transport Authority (LAMATA) on April 28, 2023.
Source: Legit.ng
