By Adedapo Adesanya
Oando Plc and Italian oil company, Eni, have announced the signing of an agreement for Oando to acquire Nigerian Agip Oil Company (NAOC) Limited as it plans to divest some of its assets in the country.
The Wale Tinubu-led oil company will take NAOC Limited interests in Nigeria across four onshore blocks (OML 60, 61, 62, 63), which it operates on behalf of NAOC JV (operator NAOC Ltd 20 per cent, Oando 20 per cent, NNPC E&P Limited 60 per cent), 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 per cent and 48 per cent) for which it also holds operatorship.
The assets’ gross output is around 30,000 barrels of oil per day and 500 million standard cubic feet per day of gas. On an output basis, it is the least-performing Joint Venture (JV) among the five JVs operated by oil majors in Nigeria.
However, NAOC Limited’s participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30 per cent, TOTALEnergies 10 per cent, NAOC 5 per cent, and NNPC 55 per cent) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.
This will not mean a total exit for Eni as it 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.
The closing of this transaction is subject to regulatory approval from the relevant authorities.
Eni will continue to operate in the country, focusing on operated offshore activities. Participations are operated by other assets, both onshore and offshore, and Nigeria Liquified Natural Gas (NLNG) will also remain in the Eni portfolio.
The transaction is consistent with Eni’s three-year plan (2023-2026 Plan). This will see the upstream supplement the core organically led growth with inorganic high-grading activity, adding resources with incremental value while divesting resources that can offer greater value and opportunities to new owners.
