Wale Tinubu addresses acquisition of Agip from ENI, awaits ministerial approval

The Group Chief Executive, Oando Plc, Wale Tinubu, said the acquisition of Nigerian Agip Oil Company Limited (NAOC Ltd) from ENI shows the importance of local investors.

Tinubu said indigenous investors will play a vital role in the future of the Nigerian upstream sector, a statement obtained on Tuesday from the Nigerian Exchange Limited (NGX) said.

He noted that the acquisition of Agip, which will increase Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, will unlock unparalleled opportunities for Oando.

In the statement, Oando said its total reserves standing at 503.3MMboe as of 2021 estimates, will record a 98 per cent increase due to the deal to buyout ENI from the joint venture.

Ripples Nigeria previously reported on Monday that Oando agreed to acquire 100 per cent of Nigerian Agip Oil Company Limited. The deal will increase Oando’s stake to 40 per cent.

Presently, Oando and Agip have a 20 per cent stake each in the joint venture (NAOC JV) operated alongside the Nigerian National Petroleum Company (NNPC) E&P Limited, which has 60 per cent.

Upon the completion of the deal still awaiting Ministerial Consent and regulatory approvals, Oando will hold 40 per cent of the JV operating four onshore blocks (OML 60, 61, 62, 63).

Oando will also have access to other enterprises Agip is involved in, “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,” Tinubu said.

The oil boss said the acquisition was “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,” the statement quoted Tinubu.

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