Oando PLC Finalises $783m Acquisition Of NAOC

Oando PLC has successfully concluded its acquisition of the Nigerian Agip Oil Company (NAOC) from Italy’s Eni, in a landmark $783 million deal.

This strategic move marks a significant step in Oando’s long-term growth plan, reinforcing its position in Nigeria’s oil and gas sector.

The transaction, which encompasses both reimbursement and asset consideration, received final approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). With this acquisition, Oando now holds a 40 percent stake in key oil mining leases (OMLs) 60, 61, 62, and 63—doubling its previous 20 percent interest. This expanded ownership includes 40 discovered oil and gas fields, 24 of which are actively producing.

In addition to increasing its stakes in these OMLs, Oando now gains control over crucial infrastructure assets, including 1,490 kilometers of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai power plants with a capacity of 960MW.

The acquisition significantly boosts Oando’s total reserves, which have surged from 505.6 million barrels of oil equivalent (MMboe) to over 1 billion barrels, a 98 percent increase based on 2022 estimates.

Oando expects the acquisition to immediately enhance its cash flow, further strengthening its financial position.

The company’s Group Chief Executive, Mr. Wale Tinubu, emphasised that this acquisition is the result of a decade-long effort, dating back to Oando’s purchase of ConocoPhillips’ Nigerian assets in 2014. Mr. Tinubu underlined the importance of this acquisition for Oando and other indigenous energy players, signaling a new phase in Nigeria’s upstream sector.

While optimistic about the deal’s potential, Oando acknowledges the risks and uncertainties inherent in such transactions, including fluctuations in crude oil prices and international operational challenges. Despite these concerns, the company is committed to maximising the potential of the acquired assets while exploring diversification opportunities in clean energy and related sectors.