Oando PLC, is set to acquire 100% of the shares of Nigerian Agip Oil Company Limited from Eni, the Italian multinational energy company headquartered in Rome. 

NAOC Ltd, a wholly-owned subsidiary of Eni, specializes in onshore oil and gas exploration and production in Nigeria, as well as power generation. The transaction will see Oando PLC expand its influence in the Nigerian energy landscape.

According to the Chief Compliance Officer & Company Secretary of Oando PLC, Ayotola Jagun, the acquisition will substantially increase Oando’s existing participating interests in OMLs 60, 61, 62, and 63, from 20% to 40%. 

Additionally, Oando will gain ownership stakes in various assets and infrastructure within the NEPL/NAOC/OOL Joint Venture, including numerous oil and gas fields, production stations, pipelines, gas processing plants, and power generation facilities.

The acquisition is also expected to significantly boost Oando’s exploration asset portfolio by securing a 90% interest in OPL 282 and a 48% interest in OPL 135. 

Based on 2021 reserve estimates, Oando’s total reserves will experience a remarkable 98% increase as a result of this transaction.

Eni, on the other hand, will retain its presence in Nigeria through Nigerian Agip Exploration and Agip Energy and Natural Resources. 

Eni will focus on operated offshore activities, participation in operated-by-others assets (both onshore and offshore), and its involvement in Nigeria LNG.

The completion of this transaction is subject to Ministerial Consent and other requisite regulatory approvals. It aligns with Eni’s 2023-2026 Plan, which seeks to optimize resource allocation and add value through high-grading activities. 

It is seen as a strategic move to divest resources that can offer greater value and opportunities to new owners.

Wale Tinubu, the Group CEO of Oando PLC, expressed optimism about the acquisition, emphasizing the significant role indigenous companies will play in the future of Nigeria’s upstream sector. 

He stated that the synergies resulting from this transaction will unlock various opportunities, enhance efficiency, and increase production, ultimately benefiting local communities, stakeholders, and shareholders.