In a deal valued at $783m, Oando Plc has acquired a 100 per cent stake in the Nigerian Agip Oil Company from Italian energy firm, Eni.
On Thursday, in a corporate notice filed on the Nigeria Exchange Limited Oando noted the acquisition aligned with its strategy to bolster its upstream operations in the country’s oil and gas industry.
The firm reports that the transaction significantly increases its participating interest in key oil mining leases 60, 61, 62, and 63 from 20 per cent to 40 per cent, effectively doubling its stake in the NEPL/NAOC/OOL Joint Venture.
The newly acquired assets include 40 oil and gas fields, with 24 currently producing, as well as 1,490 kilometres of pipelines; 12 production stations; three gas processing plants; the Brass River Oil Terminal; and the Kwale-Okpai power plants, with a combined capacity of 960 MW.
Oando stated that, as a result of the acquisition, its total reserves had surged by 98 per cent, from 505.6 million barrels of oil equivalent to one billion barrels of oil equivalent, based on 2022 estimates.
It added that the deal was expected to be immediately cash-generative, providing a substantial boost to its revenue and cash flow.
It further stated that “Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bn Boe,”
