Oando completes 100% acquisition of Agip
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), yesterday, announced the final completion of the acquisition of 100 per cent stake in Italian-owned Nigeria Agip Oil Company (NAOC) by Oando Plc.
NUPRC Commission Chief Executive (CCE), Mr.Gbenga Komolafe, stated this at ongoing NOG Energy week in Abuja.
Also completed is the sale of Equinor Nigerian business to Chappal Energies. Equinor and Chappal Energies had entered into an agreement for the sale of Equinor Nigeria Energy Company (ENEC), which holds a 53.85 per cent ownership in oil and gas lease OML 128, including the unitised 20.21 per cent stake in the Agbami oil field, operated by Chevron.
“For some of you who were at the panel session, the Chairman of IPPG (Independent Petroleum Producers Group) raised issues about the need for us to give update on the divestments programmes on-going. Now, I am here to give you real-time update on the four major divestments in Nigeria.
The NAOC-Oando divestment has been concluded. Signing ceremony will come up any moment. With this transaction Oando increases its current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent. Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty discovered oil and gas fields, of which 24 are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure, has also increased.
Speaking on the transaction, the Group Chief Executive, Oando, Wale Tinubu, had said, “The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production.
Furthermore, it is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves. Today’s 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.
Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders and shareholders.”
Giving an update on Shell Petroleum Development Company (SPDC) – RENAISSANCE $2.4 billion deals, Komolafe said that the deals were already undergoing due diligence.
“On the Exxonmobil- Seplat deal, expression of interest on commitment to apply for ministerial consent, we are yet to receive any as we speak.”
The ExxonMobil- Spelat deal have been in the saddle for over two years with industry observers warning on the consequences of the delay
The Nigerian National Petroleum Company Limited (NNPC Ltd) in March finally signed a settlement agreement with Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. resolving the long-standing compliance issues under Section 14 of the 2019 Joint Operating Agreement (JOA) contained in the Petroleum Industry Act (PIA).
The settlement was reached between the management of the two organizations in March, thereby granting consent to the sale of ExxonMobil’s 40 percent stake in MPNU assets to Seplat Energy Plc for $1.3 billion.
