Oando Plc’s acquisition of the Nigerian Agip Oil Company (NAOC) from Eni for $783 million marks a significant expansion in Nigeria’s oil and gas sector. This deal not only doubles Oando’s stake in the NEPL/NAOC/OOL Joint Venture from 20% to 40%, but also significantly boosts the company’s reserves, production capacity, and infrastructure.
With this acquisition, Oando gains full control of 40 oil and gas fields, 24 of which are currently producing, along with extensive pipeline networks, production stations, gas processing plants
, the Brass River Oil Terminal, and the Kwale-Okpai power plants with a combined capacity of 960MW. The company’s reserves have surged by 98%, bringing their total reserves to one billion barrels of oil equivalent, based on 2022 estimates.
Related News
- oando-denies-owning-blending-plant-in-malta.
- “Oando, Cutix Lead Market Decline, Triggering N108bn Loss”
This strategic move aligns with Oando’s long-term goals to strengthen its upstream operations and to play a more significant role in Nigeria’s energy sector, as highlighted by the Group Chief Executive, Wale Tinubu. The acquisition is expected to be immediately cash-generative, providing a substantial boost to Oando’s revenue and cash flow, and positioning the company for future growth in the region.
