Nigerian energy company Oando PLC has successfully completed its acquisition of 100% of the shareholding interest in the Nigerian Agip Oil Company (NAOC) from Italian multinational Eni. As the voice of the African energy sector, the African Energy Chamber (AEC) endorses this groundbreaking acquisition, which underscores the growing role of local exploration companies in revitalizing Nigeria and Africa\u2019s upstream landscape.<\/p>\n\n\n\n
The $783-million transaction sees Oando\u2019s participating interests in Oil Mining Licenses (OML) 60, 61, 62 and 63 increase from 20% to 40% and its total reserves grow by almost 100% to one billion barrels of oil equivalent. Oando\u2019s ownership stake will also increase in NAOC\u2019s joint venture assets, which include 40 discovered oil and gas fields \u2013 of which 24 are currently producing \u2013 40 identified prospects and leads, 12 production stations, 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai Phase 1 & 2 power plants and associated infrastructure. <\/p>\n\n\n\n
With a diverse portfolio of on- and offshore assets in Nigeria\u2019s oil and gas sector, Oando represents one of the leading indigenous explorers on the continent. Currently, its producing assets include Qua Iboe (OML 13) and the Ebendo Field (OML 56), in addition to the four OMLs acquired from NAOC. The company\u2019s promising development pipeline includes OML 90 and OML 122, which hold tremendous potential for boosting Oando\u2019s operational capacity, while its exploration prospects center around interests in several strategic assets, including OMLs 321 and 323, as well as Blocks 5 and 12, OML 131 and OML 145.<\/p>\n\n\n\n
\u201cThis announcement is the culmination of ten years of toil, resilience and an unwavering belief in the realization 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\u2019s upstream evolution,\u201d said Wale Tinubu CON, Group Chief Executive, Oando PLC.<\/p>\n\n\n\n
Affirming its commitment to Africa\u2019s energy sector growth, the company will discuss its latest acquisition and investment strategy, with a focus on integrating just transition principles and technologies and ensuring local value creation. Boasting a number of strategic partnerships and with a focus on sustainable growth, Oando PLC is well-positioned to harness the full potential of Africa\u2019s energy resources and create long-term value for the company\u2019s stakeholders. With a diverse and robust array of assets, Oando PLC has established a firm foundation for its business operations, ensuring a strong and sustainable presence in the dynamic and ever-evolving oil and gas sector.<\/p>\n\n\n\n
\u201cOando is delivering on its pledge to expand upstream investments and its position in Nigeria\u2019s oil and gas sector. The AEC congratulates and supports Oando on the successful completion of this milestone transaction, as it affirms the influence of local exploration and production companies and their unwavering belief in harnessing the full scope of Africa\u2019s energy resources. We look forward to unpacking this deal and its many implications for the sector at this year\u2019s AEW,\u201d says NJ Ayuk, AEC Executive Chairman.<\/p>\n","protected":false},"excerpt":{"rendered":"