Italian oil major Eni has signed an agreement with Oando, an energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange, 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 presently has interests across 4 onshore blocks (OML 60, 61, 62, 63), which it operates on behalf of NAOC JV (operator NAOC Ltd 20 percent, Oando 20 percent, NNPC E&P Limited 60 percent), 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 percent and 48 percent) for which it also holds operatorship.
NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30 percent, TotalEnergies 10 percent, NAOC 5 percent, NNPC 55 percent) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.
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Following the transaction completion with Oando PLC, Eni says it will maintain its presence in Nigeria through Nigerian Agip Exploration (NAE) and Agip Energy and Natural Resources (AENR).
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, it said.
The transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 percent to 40 percent and also 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 Kwale Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure.
The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90 percent interest in OPL 282 and 48 percent interest in OPL 135.
Commenting Wale Tinubu CON, 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.
