Oando Expands Strategically by Acquiring Nigerian Agip Oil Company for $783 million and Doubling Oil and Gas Reserves

Oando has acquired Agip for $783 million, thereby increasing its participating interests in four critical oil mining leases from 20% to 40%.

Oando PLC has effectively acquired 100% of the shareholding interest in Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni in a landmark transaction that is expected to significantly alter the oil and gas landscape of Nigeria.

The agreement, which is valued at $783 million, represents a substantial expansion of Oando’s upstream operations. It effectively doubles the company’s reserves and increases its participating interests in numerous critical oil fields.

Oando has achieved a significant milestone with the acquisition of a 100% shareholding interest in NAOC, which increases its participating interests in four critical oil mining leases (OMLs 60, 61, 62, and 63) from 20% to 40%. This expansion further solidifies Oando’s ownership of all NEPL/NAOC/OOL Joint Venture assets, which include a vast network of infrastructure, 40 discovered oil and gas fields, 24 of which are presently producing, and 1,490 kilometers of pipelines and three gas processing plants.

Wale Tinubu, Group Chief Executive of Oando PLC, characterized the transaction’s completion as the result of a decade-long strategic endeavor.

“Today’s announcement is the result of a decade of dedication, perseverance, and a steadfast conviction in the attainment of our objectives since our entry into the Joint Venture in 2014 with the acquisition of the Conoco-Philips Nigerian Portfolio.” “It is a victory for Oando and all indigenous energy players, as we assume responsibility for our own fate and play a critical role in the nation’s upstream evolution in this new phase,” he declared.

The transaction also represents a substantial increase in Oando’s reserves, as it adds 493.6 million barrels of oil equivalent (MMboe) to the company’s total reserves, which now stand at one billion barrels. The company’s cashflows and future financial performance are anticipated to be substantially impacted by this development, which is anticipated to be immediately cash-generative.

Tinubu stated that the acquisition of Oando is not solely about increasing production; it is also about promoting sustainable development and responsible practices. He stated, “Our primary objective is to maximize the assets’ immense potential, advance production, and contribute to our strategic objectives.” This will be accomplished while emphasizing sustainable development and responsible practices to guarantee a fair approach to environmental stewardship and our host communities.

The company is also considering the future as it assumes the role of operator for these assets and plans to diversify within the broader energy sector. Tinubu emphasized Oando’s intention to investigate opportunities in clean energy, agri-feedstock, energy infrastructure, and mining, reflecting the company’s dedication to long-term growth and value creation for its stakeholders.