Oando Plc, a leading African energy company, has successfully acquired a 100% shareholding interest in the Nigerian Agip Oil Company (NAOC) from Eni, an Italian oil major, for $783 million. This landmark transaction, announced on Thursday, represents a significant step in Oando’s strategic plan to bolster its upstream operations and enhance its presence in Nigeria’s oil and gas industry.
The acquisition will substantially increase Oando’s participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63, from 20% to 40%. Additionally, Oando will now hold a larger ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, reinforcing its position as a key player in the Nigerian energy sector.
Wale Tinubu, Group CEO of Oando, hailed the acquisition as a major achievement for the company and a victory for indigenous energy firms. “This transaction is a win for Oando and every indigenous energy player. Our focus now is on optimizing these assets’ immense potential, advancing production, and contributing to Nigeria’s strategic energy objectives, all while prioritizing responsible practices and sustainable development,” Tinubu said.
The acquisition is set to deliver substantial benefits to Oando, with an expected 98% increase in the company’s reserves, bringing the total to 1 billion barrels of oil equivalent (MMboe). Moreover, the deal is immediately cash-generative, significantly boosting Oando’s cash flows and enhancing its financial position.
This acquisition underscores Oando’s commitment to expanding its footprint in the oil and gas sector, leveraging new opportunities to drive growth and contribute to Nigeria’s energy security.
