Italian energy company Eni has agreed to sell its local subsidiary, Nigerian Agip Oil Company (NAOC) Ltd, to Oando Plc, a Nigerian energy company listed on both the Nigerian and Johannesburg stock exchanges. The deal, which is still subject to regulatory approvals, is expected to be completed in the first half of 2024.
- NAOC is an onshore oil and gas exploration and production company with interests in four blocks and two exploration leases in Nigeria.
- The transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.
- Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction is expected to deliver a 98% increase.
- The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90% interest in OPL 282 and 48% interest in OPL 135.
- The financial terms of the transaction have not been disclosed.
Considering these developments, we believe that this acquisition is a strategic move for Oando as it’s looking to expand its onshore oil and gas portfolio. We anticipate that this asset expansion will have a positive impact on Oando’s top-line revenue and bottom-line performance in the foreseeable future. This could also strengthen its position as a domestic player in the Nigerian upstream sector.
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