JUST IN: Tinubu’s Oando Completes $783 Million Acquisition of Nigerian Agip Oil Company

Oando Plc has finalized the acquisition of 100% of the Nigerian Agip Oil Company (NAOC) from Eni for $783 million. This deal includes both the asset purchase and reimbursement costs. The announcement was made via a statement from Oando’s Chief Compliance Officer and Company Secretary, Ayotola Jagun, released on the Nigerian Exchange (NGX) Limited on Thursday.

This acquisition marks a major milestone in Oando’s strategy to expand its upstream operations and enhance its position within Nigeria’s oil and gas sector. As a result of this transaction, Oando’s interest in OMLs 60, 61, 62, and 63 will increase from 20% to 40%.

The deal also boosts Oando’s stake in all NEPL/NAOC/OOL Joint Venture assets, including 40 discovered oil and gas fields—24 of which are producing—along with 40 identified prospects and leads, 12 production stations, 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the KwaleOkpai power plants, which have a combined capacity of 960 MW.

Based on 2022 reserves estimates, Oando’s total reserves will rise from 505.6 million barrels of oil equivalent (MMboe) to 1 billion boe, a 98% increase. This acquisition is expected to be immediately cash generative and significantly enhance the company’s cash flow.

Oando’s Group Chief Executive, Wale Tinubu, described the acquisition as the culmination of a decade of dedication and resilience, following the company’s 2014 entry into the Joint Venture via the ConocoPhillips Nigerian Portfolio acquisition. Tinubu emphasized the strategic importance of the deal for both Oando and Nigeria’s energy sector, stating, “It is a win for Oando and every indigenous energy player as we take our destiny into our hands and play a crucial role in the nation’s upstream evolution.”

Looking ahead, Tinubu outlined Oando’s commitment to optimizing the assets, advancing production, and adhering to sustainable practices. He also highlighted the company’s ongoing focus on strategic diversification, including opportunities in clean energy, agri-feedstock, energy infrastructure, and mining.