Italian major Eni has announced today the signing of an agreement to sell its Nigerian onshore oil & gas subsidiary to Oando Plc
Italian major Eni has announced today the signing of an agreement to sell its Nigerian onshore oil & gas subsidiary to Oando Plc, confirming a deal that had been in the making for a few years.
The deal covers Eni’s interest in some 40 discovered fields, including 24 currently producing, some 40 identified prospects and leads, 12 production stations, about 1,490km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Okpai gas-to-power stations.
Eni’s Nigerian Agip Oil Company (NAOC Ltd) notably operates OMLs 60, 61, 62 and 63 on behalf of the NAOC joint-venture that includes NAOC (20%, operator), Oando Plc (20%) and state-owned NNPC E&P Ltd (60%).
The blocks are very rich in gas and liquids and are a key supplier of natural gas to the Nigeria LNG export terminal. Output from the four licenses has been unstable in recent years due to crude theft and pipeline vandalism, but upside development and exploration potential remains significant.
The deal also includes the Okpai I and II gas-to-power plants with a total nameplate capacity of 960 MW, and NAOC’s operated interests in OPL 282 (90%) and a OPL 135 (48%), two onshore exploration leases in the Niger Delta.
However, NAOC Ltd’s 5% interest in the Shell Production Development Company (SPDC) joint-venture is not included in the transaction, Eni and Oando said in their statements.
“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,” said Oando Group Chief Executive Wale Tinubu CON.
Eni’s deal is in line with international oil companies’ divestment strategies as they rationalize their portfolios in Nigeria by concentrating on offshore assets only. Following the transaction, Eni will still have two subsidiaries in Nigeria, including Nigerian Agip Exploration (NAE) for deep offshore and Agip Energy and Natural Resources (AENR) for shallow water developments.
The deal covers Eni’s interest in some 40 discovered fields, including 24 currently producing, some 40 identified prospects and leads, 12 production stations, about 1,490km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Okpai gas-to-power stations.
Eni’s Nigerian Agip Oil Company (NAOC Ltd) notably operates OMLs 60, 61, 62 and 63 on behalf of the NAOC joint-venture that includes NAOC (20%, operator), Oando Plc (20%) and state-owned NNPC E&P Ltd (60%).
The blocks are very rich in gas and liquids and are a key supplier of natural gas to the Nigeria LNG export terminal. Output from the four licenses has been unstable in recent years due to crude theft and pipeline vandalism, but upside development and exploration potential remains significant.
The deal also includes the Okpai I and II gas-to-power plants with a total nameplate capacity of 960 MW, and NAOC’s operated interests in OPL 282 (90%) and a OPL 135 (48%), two onshore exploration leases in the Niger Delta.
However, NAOC Ltd’s 5% interest in the Shell Production Development Company (SPDC) joint-venture is not included in the transaction, Eni and Oando said in their statements.
“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,” said Oando Group Chief Executive Wale Tinubu CON.
Eni’s deal is in line with international oil companies’ divestment strategies as they rationalize their portfolios in Nigeria by concentrating on offshore assets only. Following the transaction, Eni will still have two subsidiaries in Nigeria, including Nigerian Agip Exploration (NAE) for deep offshore and Agip Energy and Natural Resources (AENR) for shallow water developments.
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