OANDO PLC, Nigeria’s leading energy solutions provider, has successfully acquired the Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni for $783 million. This acquisition marks a significant step in Oando’s strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.
With this acquisition, Oando’s stake in Oil Mining Leases (OMLs) 60, 61, 62, and 63 will increase from 20 percent to 40 percent. The deal also includes ownership of extensive infrastructure, such as 40 discovered oil and gas fields, 12 production stations, nearly 1,500 km of pipelines, three gas processing plants, and the Brass River Oil Terminal. Additionally, Oando now owns the Kwale-Okpai power plants, with a combined capacity of 960MW.
Oando’s total reserves have nearly doubled due to the acquisition, from 505.6 million barrels of oil equivalent (MMboe) to 1 billion MMboe, enhancing the company’s cash flow and overall value.
Wale Tinubu, Group Chief Executive of Oando PLC, expressed his excitement over the acquisition, stating, ‘This milestone reflects our dedication to taking control of our destiny in Nigeria’s upstream sector. Our immediate focus is on maximising the potential of these assets while prioritising sustainable development and environmental stewardship.’
This acquisition is a part of Oando’s broader strategy to diversify its operations within the energy sector, including exploring opportunities in clean energy and infrastructure.
Oando’s acquisition of NAOC represents a pivotal moment for the company and underscores its commitment to playing a leading role in Nigeria’s energy industry.
