Mohammed Shosanya
The African Energy Chamber (AEC),has endorsed Oando Plc’s complete acquisition of 100% of the shareholding interest in the Nigerian Agip Oil Company (NAOC) from Italian multinational Eni.
In a statement on Monday,the group said the development underscores the growing role of local exploration companies in revitalizing Nigeria and Africa’s upstream landscape.
It said:”The $783-million transaction sees Oando’s participating interests in Oil Mining Licenses (OML) 60, 61, 62 and 63 increase from 20% to 40% and its total reserves grow by almost 100% to one billion barrels of oil equivalent.
“Oando’s ownership stake will also increase in NAOC’s joint venture assets, which include 40 discovered oil and gas fields – of which 24 are currently producing – 40 identified prospects and leads, 12 production stations, 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai Phase 1 & 2 power plants and associated infrastructure.
“With a diverse portfolio of on- and offshore assets in Nigeria’s oil and gas sector, Oando represents one of the leading indigenous explorers on the continent. Currently, its producing assets include Qua Iboe (OML 13) and the Ebendo Field (OML 56), in addition to the four OMLs acquired from NAOC.
“The company’s promising development pipeline includes OML 90 and OML 122, which hold tremendous potential for boosting Oando’s operational capacity, while its exploration prospects center around interests in several strategic assets, including OMLs 321 and 323, as well as Blocks 5 and 12, OML 131 and OML 145”.
The statement quoted that Oando PLC is well-positioned to harness the full potential of Africa’s energy resources and create long-term value for the company’s stakeholders.
With a diverse and robust array of assets, it said Oando Plc has established a firm foundation for its business operations, ensuring a strong and sustainable presence in the dynamic and ever-evolving oil and gas sector.
“Oando is delivering on its pledge to expand upstream investments and its position in Nigeria’s oil and gas sector. The AEC congratulates and supports Oando on the successful completion of this milestone transaction, as it affirms the influence of local exploration and production companies and their unwavering belief in harnessing the full scope of Africa’s energy resources. We look forward to unpacking this deal and its many implications for the sector at this year’s AEW,” says NJ Ayuk, AEC Executive Chairman.
