Oando completes $783 million acquisition of Nigerian Agip Oil Company from Italian giant Eni, doubling stake in key Oil Mining Leases…..For More READ THE FULL ARTICLE HERE ▶▶...CLICK HERE TO CONTINUE READING.>>
Key Points
Oando Plc acquires Nigerian Agip Oil Company for $783 million, doubling its stake in key Oil Mining Leases to 40 percent.
The acquisition adds 493.6 million barrels of oil equivalent to Oando’s reserves, boosting total reserves by 98 percent to 1 billion barrels.
Wale Tinubu leads Oando’s expansion, marking a decade of strategic planning and reinforcing the company’s presence in Nigeria’s oil and gas sector.
APC Chieftain Begs Nigerians to Shelve Protest, Say Tinubu will Stabilise Economy
Oando Plc, an integrated energy solutions provider led by Nigerian oil magnate Wale Tinubu, has completed the acquisition of the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni in a transaction valued at $783 million. This represents a pivotal milestone in Oando’s strategic plan to expand its upstream operations and strengthen its presence in the oil and gas sector.
Strategic expansion in Nigerian oil and gas
The acquisition effectively doubles Oando’s participating interest in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20 percent to 40 percent. This significant increase enhances Oando’s asset portfolio, which was valued at N3.143 trillion ($2.1 billion) as of Dec. 31, 2023.
The transaction also grants Oando a substantial stake in all NEPL/NAOC/OOL Joint Venture assets, which include 40 discovered oil and gas fields, 24 of which are currently in production. Additionally, the assets comprise 12 production stations, 1,490 kilometers of pipelines, three gas processing plants, and the Brass River Oil Terminal. The deal also includes the Kwale-Okpai phases 1 & 2 power plants, boasting a combined nameplate capacity of 960 megawatts.
According to 2022 reserves estimates, this acquisition will boost Oando’s total reserves by 98 percent, adding 493.6 million barrels of oil equivalent and bringing the company’s total reserves to 1 billion barrels of oil equivalent. The deal is expected to be immediately cash-generative, significantly contributing to Oando’s cash flow and supporting its long-term financial strategy.
A Decade in the making
Wale Tinubu, the Group CEO of Oando, hailed the acquisition as the culmination of a decade of strategic planning and determination. “Today’s announcement is the result of ten years of toil, resilience, and an unwavering belief in the realization of our ambition since our 2014 entry into the Joint Venture through the acquisition of Conoco-Philips Nigerian Portfolio. This acquisition is not just a win for Oando, but for every indigenous energy player. It signifies our commitment to taking our destiny into our hands and playing a pivotal role in the next phase of the nation’s upstream evolution,” Tinubu said…..For More READ THE FULL ARTICLE HERE ▶▶
With Oando assuming the role of operator in these assets, Tinubu emphasized the company’s focus on optimizing the assets’ potential, advancing production, and contributing to Oando’s broader strategic objectives. He also stressed the importance of prioritizing responsible practices and sustainable development, ensuring a balanced approach to host communities, and environmental stewardship.
“Looking to the future, we will continue to pursue strategic diversification opportunities within the broader energy sector, particularly in clean energy, agri-feedstock, energy infrastructure, and mining, which provide enhanced growth and value creation for our stakeholders,” Tinubu added.
Wale Tinubu drives Oando’s expansion
Since its rebranding from Unipetrol Nigeria Plc to Oando Plc in 2003, the energy solutions provider has grown under Wale Tinubu’s leadership into Nigeria’s leading energy company with broad operations across the upstream, midstream, and downstream sectors.
Wale Tinubu, who is the nephew of Nigeria’s president Bola Ahmed Tinubu, holds a 66.67 percent stake in Oando through Ocean and Oil Development Partners (OODP), alongside Omamofe Boyo, has been instrumental in the company’s evolution.
In 2023, Oando reported a profit surge to N74.7 billion ($51 million) and an average production of 20,837 barrels per day. The company’s revenue rose by 71 percent year-on-year to N3.4 trillion ($2.3 billion), driven by increased trading activity and a favorable exchange rate environment…..For More READ THE FULL ARTICLE HERE ▶▶
