Adedapo Adesanya
By Adedapo Adesanya
The African Energy Chamber (AEC) has endorsed the agreement between Oando Plc and an Italian oil giant, Eni, for the acquisition of 100 per cent of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
In a statement seen by Business Post, the AEC said the transaction holds immense potential for Nigeria’s energy sector and the wider African energy landscape.
According to Mr NJ Ayuk, Executive Chairman of the AEC, the Oando-Eni deal marks a significant milestone for Nigeria’s energy sector and underscores the potential for local participation and growth.
“By increasing Oando’s stake in vital oil and gas assets and infrastructure, this agreement not only strengthens indigenous control but also contributes to increased economic development within the country.
“As we strive for energy sovereignty and sustainable growth, it is imperative that the Nigerian Government expedites the necessary approvals to realize the full benefits of this transformative transaction,” he said.
The deal will see Oando 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.
The AEC noted that the deal represents a substantial step towards enhancing indigenous participation and control in the energy industry, adding that it will not only grow the company but also contribute to the development of Nigeria’s hydrocarbon resources.
“This transaction marks a significant step forward for Oando, increasing its ownership and influence across a wide spectrum of energy assets, including production, infrastructure, reserves, and exploration. It positions Oando as a major contributor to Nigeria’s energy sector and underscores its commitment to furthering the country’s energy ambitions,” the AEC said.
The chamber also called on the Nigerian government to swiftly grant ministerial consent and any other necessary regulatory approvals to facilitate the completion of this transaction.
“Speedy approval will enable the parties involved to expedite the realization of the deal’s benefits, furthering Nigeria’s energy ambitions and attracting additional investments.
“This landmark agreement demonstrates the continued commitment of industry players like Oando and Eni to the sustainable growth and development of Africa’s energy resources.
“The AEC remains steadfast in its support of initiatives that drive economic prosperity, strengthen local capacity, and promote responsible resource management across the continent,” the statement added.
