We’re not opposed to Agip Oil share sales to Oando -NNPCL

The Nigerian National Petroleum Company Limited (NNPCL) has said that it was never opposed to the sale of the shares of Agip Oil Company to Oando Plc. In a statement signed by the Chief Corporate Communications Officer of the company, Garba Deen Muhammad said the letter to Agip Oil did not indicate it was opposed to the deal. In a letter to the Managing Director of Nigerian Agip Oil Company Ltd, dated September 4, and signed by Managing Director of NNPC E&P Limited, Ali Muhammed Zarah, NNPCL said if the deal goes through, it would have far-reaching contractual/legal implications in relation to the joint Operating Agreement dated July 1991 governing the operations of the NAOC/NEPL/OOL Joint venture. NNPCL said in the letter that its consent as a member of the joint venture member operating ENI’s onshore asset, was not obtained before the planned divestment to Oando. This it said was against contract rules governing the joint venture operation, and could affect the deal. The statement reads, “It has come to our notice that a routine communication in the form of a letter written by NNPC E&P Limited (NEPL) to its JV Partner, Nigerian Agip Oil Company Limited (NAOC) is being interpreted to suggest that NNPC Ltd. is opposed to the sale of NAOC shares to Oando PLC. This is not correct.  “NNPC Ltd. wishes to state that the letter was sent by NEPL, an NNPC Ltd. subsidiary. However, nowhere was opposition or objection to the transaction mentioned in the letter. “NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error. Adherence to those clauses will protect the transaction, now and in the future.” Oil major Eni had in a press release saying that it had signed an agreement with Oando, an energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange, for the sale of all its stake in Nigerian Agip Oil Company Ltd (NAOC Ltd), a wholly-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.

Oando Plc agrees ENI acquisition of Nigerian Agip Oil shares

Oando Plc, (Oando), has announced an agreement with ENI for the acquisition of 100 per cent of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).  The company which is listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange, is pleased to announce that the Completion of the transaction is subject to Ministerial Consent and other required regulatory approvals. The transaction is set to increase Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent. Oando in a statement said that the arrangements will increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include 40 discovered oil and gas fields, of which twenty four are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure. It said based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will deliver a 98 per cent increase. The transaction also grows Oando’s exploration asset portfolio through the acquisition of a 90 per cent interest in OPL 282 and 48 per cent interest in OPL 135. A Statement from the company said NAOC Ltd participating interest in SPDC JV like Shell Production Development Company Joint Venture – operator Shell 30 per cent TotalEnergies 10 per cent, NAOC 5 per cent, NNPC 55 per cent is not included in the perimeter of the transaction and will be retained in Eni’s portfolio. Commenting Wale Tinubu CON, Group Chief Executive, Oando PLC said: “The synergies created by this acquisition will unlock unparalleled opportunities for us to realign 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. Today’s announcement is 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.”