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HomeBusinessOando to acquire Agip oil company, awaits regulatory approval

Oando to acquire Agip oil company, awaits regulatory approval

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By Samuel Bankole

Nigerian energy firm Oando on Monday signed an agreement to buy Nigerian Agip Oil Company (NAOC), which focuses on oil and gas exploration and production.

The local unit of the Italian energy group Eni has interests in four onshore blocks and two onshore exploration leases in Nigeria.

Eni said in a statement that after the sale, it will retain NAOC’s 5 percent stake in the Shell Production Development Company (SPDC) joint venture operated by Shell.

It did not provide the financial details of the agreement.

Also, in a statement posted on the Nigerian Exchange Limited website, Oando said the completion of the transaction is subject to ministerial consent and other regulatory approvals.

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The transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40 percent.

The statement noted that the transaction also increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty discovered oil and gas fields, of which twenty-four are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the KwaleOkpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.

It said that based on 2021 reserve estimates, Oando’s total reserves stand at 503.3 million, and the transaction will deliver a 98 percent increase.

The chief executive officer of Oando, Wale Tinubu, said in his comments on the transaction that “the synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production.

“Furthermore, it is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.

“Today’s announcement is not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian upstream sector.”

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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