Oando Plc has confirmed an agreement with Eni to acquire a 100% stake in Nigerian Agip Oil Company Limited (NAOC Ltd). The deal is pending ministerial consent and other regulatory approvals, according to an official statement from Oando.
This acquisition will double Oandoโs current interests in oil mining leases (OMLs) 60, 61, 62, and 63 from 20% to 40%.
The transaction also expands Oandoโs ownership in joint venture assets and infrastructure with NNPC Exploration and Production Limited (NEPL) and NAOC. The assets include 40 discovered oil and gas fields, approximately 40 prospects and leads, 12 production stations, and around 1,490 km of pipelines.
โTodayโs announcement is not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian upstream sector,โ said Wale Tinubu, Group Chief Executive at Oando Plc.
Editorial
The acquisition of a 100% stake in Nigerian Agip Oil Company by Oando Plc is a significant milestone in Nigeriaโs oil and gas sector. It not only amplifies Oandoโs footprint but also underscores the growing influence of indigenous companies in the upstream sector.
This move is in line with Oandoโs strategy of acquiring, enhancing, appraising, and efficiently developing reserves, and it could set a precedent for other local companies to follow.
However, the deal also raises questions about the concentration of power and resources in a few hands. Regulatory bodies must ensure that this acquisition does not lead to a monopoly that could stifle competition and innovation in the sector.
The government should also consider the environmental and social impacts of such a large-scale operation.
Did You Know?
- Oando Plc is one of the largest integrated energy solutions providers in Africa.
- The Nigerian oil and gas sector contributes about 9% to the countryโs Gross Domestic Product (GDP).
- Nigeria is the largest oil producer in Africa and the 11th largest in the world.
- The Nigerian Agip Oil Company was initially a joint venture between the Nigerian National Petroleum Corporation, Eni, and ConocoPhillips.
- The oil and gas sector is the largest source of foreign exchange earnings for Nigeria.
