Eni Confirms Regulatory Approval to Sell Agip Oil to Oando

By Adedapo Adesanya

Italian Oil Major, Eni, has confirmed the approval of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to sell its unit, Nigerian Agip Oil Company (NAOC), to Oando.

This is contained in a statement from the official website of the energy company on Wednesday.

Eni said NAOC focuses on onshore oil and gas exploration and production as well as power generation in Nigeria.

Eni’s decision reflects a broader trend among international oil companies (IOCs) to divest from onshore assets in Nigeria, focusing instead on the offshore and deepwater segments of the oil and gas industry.

The company, however, stated that the 5 per cent stake in the Shell Production Development Company Joint Venture (SPDJV) was excluded from the transaction and will remain part of Eni’s portfolio.

“Eni has received formal consent from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the sale of NAOC Ltd to Oando Plc.

“Having already obtained all other relevant local and regulatory authorities’ authorizations, this achievement will allow Eni to proceed to the completion of the transaction for the sale of Nigerian Agip Oil Company Ltd (NAOC Ltd), Eni’s wholly owned subsidiary focusing on onshore oil & gas exploration and production as well as power generation in Nigeria, to Oando PLC, Nigeria’s leading national energy solutions provider, listed on both the Nigerian and Johannesburg Stock Exchange.

“NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30%, TotalEnergies 10%, NAOC 5%, NNPC 55%) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.

“Eni remains committed to the country through investments in deepwater projects and Nigeria LNG.”

Recall that in September 2023, Eni agreed to sell NAOC, its wholly-owned subsidiary focusing on onshore oil and gas exploration and production as well as power generation in Nigeria, to Oando.

However, the Nigerian National Petroleum Corporation (NNPC) Limited resisted the move, emphasizing that Eni did not get the necessary approvals from regulatory bodies to sell its assets in Nigeria.

NNPC said that the sale of Agip assets to Oando without their consent is a breach of its Joint Operating Agreement it signed on July 1991 relating to NAOC/NEPL/OOL Joint Venture

With the move almost completed, Eni will join the other International Oil Companies (IOCs) that are divesting from Nigeria’s onshore sector after decades of operations.

Others include Shell which is selling its 30 per cent stake in SPDC to Renaissance, a consortium composed of five local companies for up to $2.4 billion, ExxonMobil, and Norway’s Equinor.

Despite this strategic shift, the Italian energy firm remains a significant player in the country’s offshore fields.