In a landmark deal, Oando Plc has acquired a 100% stake in Nigerian Agip Oil Company from Eni, an Italian energy firm, for $783 million. The acquisition, announced in a corporate notice filed with the Nigeria Exchange Limited, aligns with Oando’s strategy to expand its upstream operations in Nigeria’s oil and gas industry.
The transaction significantly increases Oando’s participating interest in key oil mining leases 60, 61, 62, and 63 from 20% to 40%, doubling its stake in the NEPL/NAOC/OOL Joint Venture.
The acquired assets include:
- 40 oil and gas fields (24 currently producing)
- 1,490 km of pipelines
- 12 production stations
- Three gas processing plants
- Brass River Oil Terminal
- Kwale-Okpai power plants (combined capacity of 960MW)
As a result, Oando’s total reserves have surged by 98% to one billion barrels of oil equivalent, based on 2022 estimates. The deal is expected to be immediately cash-generative, providing a substantial boost to revenue and cash flow.
Group Chief Executive Wale Tinubu described the acquisition as a major win for Oando and the indigenous energy sector, stating, “With full control of these assets, we’re in a stronger position to drive Nigeria’s upstream growth while ensuring sustainable practices in our host communities.”
Oando’s focus will now be on maximizing the potential of the acquired assets, increasing production, and maintaining a balance between operational efficiency and environmental stewardship. The Nigerian Upstream Petroleum Regulatory Commission approved the sale last month.
