Oando acquires Nigerian Agip oil company

Oando PLC says it has completed the acquisition of 100 per cent shares of Nigerian Agip Oil Company Limited.

The company made this known in a statement on Thursday, saying “Today marks a historic milestone for Oando PLC as we proudly announce the completion of our agreement with Eni for the acquisition of 100 per cent shares of Nigerian Agip Oil Company Limited (NAOC Ltd).”

According to a post on its X handle, Oando disclosed that the signing ceremony was held at The Peninsula Hotel in London.

It said the signing ceremony cemented its position as Nigeria’s leading indigenous energy solutions provider.

“This strategic acquisition aligns with our commitment to driving Nigeria’s energy transition and bolstering our portfolio.

“We are excited about the growth opportunities this presents for Oando PLC, our shareholders, and the Nigerian energy sector.

“We look forward to leveraging the acquired assets to further our goal of providing efficient and sustainable energy solutions for all,” Oando disclosed.

In a statement on its website on Thursday, Eni also announced the closing for the sale of its wholly owned subsidiary, Nigerian Agip Oil Company Ltd to Oando.

“The transaction, which received the approval of all relevant authorities, is in line with Eni’s strategy focused on the rationalization of the upstream activities by rebalancing its portfolio and divesting non-strategic assets.

“The 5 per cent participating interest in SPDC Joint Venture) is not included in the transaction, as it will be retained in Eni’s portfolio. Eni will continue to be present in the country through investment in deepwater projects and Nigeria LNG, while also exploring new opportunities related to the agri-feedstock sector,” it clarified.

The PUNCH reported late July that Eni received the nod of the Nigerian Upstream Petroleum Regulatory Commission to sell its unit, Nigerian Agip Oil Company, to Oando.

Eni had disclosed that the NAOC focuses on onshore oil and gas exploration and production as well as power generation.

NAOC’s five per cent stake in Shell Production Development Company Joint Venture was not included in the transaction and will remain in Eni’s portfolio, the statement stated.

“Eni remains committed to the country through investments in deepwater projects and Nigeria LNG”, it said.

The PUNCH reports that a number of the international oil companies in Nigeria have divested to the deepwater.

In September 2023, Oando announced plans to acquire the NAOC, but the deal was delayed due to regulatory approvals required.

On July 3, the NUPRC announced that Oando had completed the acquisition of 100 per cent shares of Eni in its subsidiary, NAOC, adding that an announcement was imminent.

A few weeks after,, the Italian oil company said it has obtained all other relevant local and regulatory authorities’ authorisations.

“Having already obtained all other relevant local and regulatory authorities’ authorisations, this achievement will allow Eni to proceed to the completion of the transaction for the sale of Nigerian Agip Oil Company Ltd (NAOC Ltd), Eni’s wholly owned subsidiary focusing on onshore oil & gas exploration and production as well as power generation in Nigeria, to Oando PLC, Nigeria’s leading national energy solutions provider, listed on both the Nigerian and Johannesburg Stock Exchange,” it stated.