Italian oil giant Eni has signed an agreement with Oando, an energy solutions provider for the sale of all its stake in Nigerian Agip Oil Company Ltd (NAOC Ltd), a wholly-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.
NAOC Ltd is present with interests in Nigeria across 4 onshore blocks (OML 60, 61, 62, 63), which it operates on behalf of NAOC JV (operator NAOC Ltd 20%, Oando 20%, NNPC E&P Limited 60%), in the Okpai 1 and 2 power plants (with a total nameplate capacity of 960MW), and in two onshore exploration leases (OPL 282 and OPL 135, respectively 90% and 48%) for which it also holds operatorship.
Eni said in a statement, but did not disclose the financial details of the accord.
NAOC’s participating interest in Shell Production Development Company (SPDC) Joint Venture of 5 per cent, is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.
“Following the transaction completion with Oando PLC, Eni will maintain its presence in Nigeria through Nigerian Agip Exploration (NAE) and Agip Energy and Natural Resources (AENR), reiterating the company’s commitment to its employees health and safety, as well as to the environment.
“Eni continues to operate in the country focusing on operated offshore activities. Participations in operated-by-others assets, both onshore and offshore, and Nigeria LNG will remain in Eni portfolio too,” the global oil giant noted.
Eni added that the transaction is consistent with its 2023-2026 plan, wherein the upstream will supplement the core “organically led growth with inorganic high-grading activity”.
To this end, the company emphasised that it will be adding resources with incremental value while divesting resources that can offer greater value and opportunities to new owners.
“The closing of this transaction is subject to, inter alia, the authorisation of all relevant local and regulatory authorities,” the company pointed out. The sale is expected to nearly double Oando’s reserves to 996 million barrels of oil equivalent.
Commenting Wale Tinubu, Group Chief Executive, Oando PLC said: “The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production.
“Furthermore, it is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves. Today’s announcement is not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian upstream sector,” he said.