Oando Plc announced on Thursday that it has completed the acquisition of Nigerian Agip Oil Company (NAOC) from the Italian energy giant, Eni.
The transaction, valued at $783 million, includes reimbursement and consideration for the acquired assets, as outlined in Oando’s official statement.
Wale Tinubu, Oando’s CEO and nephew of Nigeria’s President Bola Tinubu, described the acquisition as the culmination of a decade-long effort.
“This deal represents the culmination of ten years of toil, resilience, and unwavering belief in realising our ambition since our 2014 entry into the Joint Venture through the acquisition of Conoco-Philips’ Nigerian portfolio,” said Tinubu.
He stated that the company will continue to seek strategic diversification opportunities within the broader energy sector, particularly in clean energy, agri-feedstock, energy infrastructure, and mining, to enhance growth and value for its stakeholders.
However, Tinubu did not address criticisms that Oando had been struggling financially before his uncle became president in May 2023.
Allegations have surfaced that President Tinubu facilitated deals benefiting Oando at the expense of Nigeria.
Earlier this year, Peoples Gazette reported that the Tinubu family was negotiating Oando’s takeover of Eni’s Nigerian assets in exchange for Eni’s repossession of the lucrative OPL 245 oil field in partnership with Shell.
But while both Oando and Eni denied any wrongdoing in separate statements, Nigeria’s Minister of State for Petroleum, Heineken Lokpobiri, confirmed the deal, asserting it was in the nation’s best interest.
In a statement issued by Ayotola Jagun, Oando’s Chief Compliance Officer and Secretary, the company expressed optimism that the acquisition would significantly expand its upstream operations and strengthen its presence in Nigeria’s oil and gas sector.
The deal effectively doubles Oando’s current participating interests in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20% to 40%.
The acquisition also enhances Oando’s ownership in all NEPL-NAOC-OOL joint venture assets and infrastructure, which include 40 discovered oil and gas fields—24 of which are currently producing—12 production stations, nearly 1,490 kilometers of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai power plants with a combined capacity of 960 megawatts.
Based on 2022 reserves estimates, Oando’s total reserves stood at 505.6 million barrels of oil equivalent (MMboe).
The transaction is expected to deliver a 98% increase in reserves, adding 493.6MMboe to bring the company’s total reserves to 1 billion barrels of oil equivalent (Bnboe).
