Oando’s $783m NAOC acquisition accentuates growing Nigerian local exploration – AEC

Ben Eguzozie

The African Energy Chamber (AEC), the voice of energy sector on the continent, has described Oando, Nigerian energy company’s successful acquisition of 100 percent of the shareholding interest of Italian multinational Eni in the Nigerian Agip Oil Company (NAOC), as accentuating the growing role of Nigerian local exploration companies in revitalising the country and Africa’s upstream landscape.

Oando completed its acquisition of Eni equity stake in NAOC worth some $783 million.

The $783-million transaction sees Oando’s 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 1 billion barrels of oil equivalent.

Oando’s ownership stake will also increase in NAOC’s joint venture assets, which include 40 discovered oil and gas fields – of which 24 are currently producing – 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.

With a diverse portfolio of on- and offshore assets in Nigeria’s oil and gas sector, Oando represents one of the leading indigenous explorers on the continent. Currently, the Nigerian oil major’s producing assets include Qua Iboe (OML 13) and the Ebendo Field (OML 56), in addition to the four OMLs acquired from NAOC. The company’s promising development pipeline includes OML 90 and OML 122, which hold tremendous potential for boosting its 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.

According to Wale Tinubu, Oando group chief executive, “This 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’s upstream evolution”.

Tinubu said the company will discuss its latest acquisition and investment strategy, affirming its commitment to Africa’s energy sector growth, with a focus on integrating just transition principles and technologies and ensuring local value creation. He said, Oando PLC, boasting a number of strategic partnerships and with a focus on sustainable growth, is well-positioned to harness the full potential of Africa’s energy resources and create long-term value for its 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,” he added.

For NJ Ayuk, executive chairman of African Energy Week, “Oando is delivering on its pledge to expand upstream investments and its position in Nigeria’s 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’s energy resources.  We look forward to unpacking this deal and its many implications for the sector at this year’s AEW,” he said.