Oando pays $783m for acquisition of Eni subsidiary NAOC

Oando Plc, a Nigerian energy solutions provider, has announces the successful completion of the acquisition of 100% of the shareholding interest in the Nigerian Agip Oil Company (NAOC) from the Italian energy company, Eni, for a total consideration of $783 million comprised of consideration for the asset and reimbursement.

The company described the acquisition as a significant milestone in its long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.

The transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%, according to the statement on Thursday.

It said: “It 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.

“Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98% increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe. The transaction is immediately cash generative and will contribute significantly to the cashflows of the company.”