Crisis-laden Oando Plc concludes plan to acquire Agip Oil Company, even as legal tussle with shareholders rage on, ENigeria newspaper reports.
This is as Oando Plc continues to battle internal skirmishes which ENigeria Newspaper understands is not ending anytime soon.
You would recall that weeks back, ENigeria Newspaper published a report detailing the internal crisis currently rocking embattled Oando Plc under the leadership of Wale Tinubu.
The report centered on the legal battles initiated by aggrieved shareholders of Oando Plc who dragged the Chief Executive Officer, Wale Tinubu, and 11 others before a Federal High Court seating in Lagos.
ENigeria Newspaper revealed exclusively that some of the cited grievances of the enraged shareholders bordered on alleged classical cheating as well as short-changing by buying their shares for far less than what was paid when the shares were purchased.
Consequently, the shareholders are seeking 25 reliefs from the Federal High Court, among which are general damages in the sum of N10 million, an order of the court restraining Wale Tinubu and others from taking any step or making omission capable of undermining the rights, privileges of the Applicants as it relates to their respective Shareholding and membership of OANDO, ARDOVA, and CORONATION INSURANCE PLC among other things. READ IT HERE
While the earlier-mentioned issues remain unresolved, fresh indications emerged on Monday that Oando Plc has concluded plans to acquire Agip Oil Company after it entered into an agreement with ENI for the acquisition of 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd), ENigeria Newspaper understands.
ENI Officially Announces Oando Plc’s Acquisition of Agip Oil Company
The finalization of the acquisition process which was announced today on ENI official website, is said to be subject to Ministerial Consent and other required regulatory approvals.
The statement reads, “ENI announces the signing of an agreement with Oando PLC – Nigeria’s leading indigenous energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange – for the sale of Nigerian Agip Oil Company Ltd (NAOC Ltd), the wholly Eni-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.
“NAOC Ltd is present with interests in Nigeria across 4 onshore blocks (OML 60, 61, 62, 63), which it operates on behalf of NAOC JV (operator NAOC Ltd 20%, Oando 20%, NNPC E&P Limited 60%), in the Okpai 1 and 2 power plants (with a total nameplate capacity of 960MW), and in two onshore exploration leases (OPL 282 and OPL 135, respectively 90% and 48%) for which it also holds operatorship.”
ENI Says no sales of 5% stake in SPDC JV Operated by Shell
ENI however maintained that it would retain its 5% stake in the SPDC JV operated by Shell.
The company noted that it will still maintain its presence in Nigeria through the Nigeria Agip Exploration (NAE) and Agip Energy. It also said the transaction is in line with the company’s 2023-2026 plan
It said, “Eni continues to operate in the country focusing on operated offshore activities. Participation in operated-by-others assets, both onshore and offshore, and Nigeria LNG will remain in Eni portfolio too.”
“The transaction is consistent with the Eni 2023-2026 Plan.
“The Upstream will supplement the core organically led growth with inorganic high-grading activity, adding resources with incremental value while divesting resources that can offer greater value and opportunities to new owners.”
“The closing of this transaction is subject to, inter alia, the authorization of all relevant local and regulatory authorities.”
However, finalizing the sale is subject to approval of all relevant local and regulatory authorities, it said.
Oando Plc Speaks on Acwuisition of Agip Oil Company
Speaking on the deal via a press statement released and signed by Company Secretary, Ayotola Jagun, it said the acquisition would see Oando’s interests in OMLs 60, 61, 62, and 63 increase from 20% to 40%. Below is an excerpt from the press statement…
The transaction increases Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.
It increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty 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.
Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction will 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.
NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30%, TotalEnergies 10%, NAOC 5%, 2 NNPC 55%) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.
Wale Tinubu Speaks on Agip Oil Acquisition
Wale Tinubu the Group CEO of Oando Plc also commented on the development, he said: the deal would help unlock more opportunities for the energy company.
Wale Tinubu also added that the acquisition highlights the important role indigenous companies will play in the future of the Nigerian upstream sector. He said:
“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. 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.”
Source: ENigeria Newspaper
