This is a significant milestone for Oando's long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.

Oando PLC has completed a $783 million acquisition of Nigerian Nigerian Agip Oil Company (NAOC), a subsidiary of Italian energy company, Eni.

The company made this known in a statement by its Chief Compliance Officer and Company Secretary, Ayotola Jagun, on Thursday, August 22, 2024.

The deal makes Oando, listed on the Nigerian Exchange Limited and Johannesburg Stock Exchange, the owner of a 100% shareholding interest in NAOC.

In a post on its X, Oando disclosed that the signing ceremony was held at The Peninsula Hotel in London. It said the event cemented its position as Nigeria's leading indigenous energy solutions provider.

The acquisition also marked a significant milestone for Oando's long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.

Following the development, the company has increased its current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.

It also increased 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 40 identified prospects and leads, 12 production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale/Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.

The transaction is expected to contribute significantly to the company's cash flow as it's immediately cash-generative.

“Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe,” Oando said.

Oando Plc confirms complete acquisition of Nigerian Agip oil company [X:@Oando_PLC]

According to Group Chief Executive Officer of Oando Plc, Wale Tinubu, the "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,” the statement added.