Oando Plc, a Nigerian energy company, has reached an agreement with Eni to acquire 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
The key points of this transaction are:
1. Oando’s participating interests in oil blocks OMLs 60, 61, 62, and 63 will increase from 20% to 40%.
2. Oando will gain ownership of various assets, including oil and gas fields, production stations, pipelines, gas processing plants, and power plants with a total capacity of 960MW.
3. Based on 2021 reserves estimates, Oando’s total reserves will increase by 98%.
4. The acquisition also includes interests in exploration assets, namely OPL 282 and OPL 135.
5. NAOC Ltd’s participation in the SPDC JV is not part of the transaction and will remain with Eni.
This acquisition is seen as a significant milestone for Oando, aligning with their strategy of enhancing and developing reserves while contributing to the Nigerian upstream sector.
The completion of the transaction is subject to regulatory approvals. The forward-looking statements in the announcement highlight the potential risks associated with such transactions.
