ENI to exit Nigeria’s onshore oil exploration market, sells firm to Wale Tinubu’s Oando

ENI, an Italian multinational energy company, has concluded plans to exit Nigeria’s onshore oil exploration after agreeing to sell Nigerian Agip Oil Company Limited (NAOC Ltd) to Oando Plc.

Oando, agreed to acquire 100 per cent of Nigerian Agip Oil Company Limited at an undisclosed amount. This was gathered from a statement by the companies on Monday.

This means that Oando, majorly owned by Wale Tinubu, the nephew of President Bola Tinubu, will take possession of four onshore blocks (OML 60, 61, 62, 63) upon Ministerial Consent and other required regulatory approvals.

“Eni announces the signing of an agreement with Oando PLC – Nigeria’s leading indigenous energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange – for the sale of Nigerian Agip Oil Company Ltd (NAOC Ltd), the wholly Eni-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.

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“NAOC Ltd is present with interests in Nigeria across 4 onshore blocks (OML 60, 61, 62, 63), which it operates on behalf of NAOC JV (operator NAOC Ltd 20%, Oando 20%, NNPC E&P Limited 60%), 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% and 48%) for which it also holds operatorship”, the company stated.

ENI is moving its focus in Nigerian Market from onshore to offshore segment, as the firm intends to keep its other subsidiary, Nigeria Agip Exploration (NAE) and Agip Energy.

“Eni continues to operate in the country focusing on operated offshore activities. Participation in operated-by-others assets, both onshore and offshore, and Nigeria LNG will remain in Eni portfolio too,” it wrote in the statement.

“The transaction is consistent with the Eni 2023-2026 Plan.

“The Upstream will supplement the core organically led growth with inorganic high-grading activity, adding resources with incremental value while divesting resources that can offer greater value and opportunities to new owners.”

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