Eni Sells Nigerian Onshore Oil Exploration Firm to Oando

ENI, an Italian multinational energy company, has finalized its plans to withdraw from onshore oil exploration activities in Nigeria. They have reached an agreement to sell Nigerian Agip Oil Company Limited (NAOC Ltd) to Oando Plc.

Oando has agreed to acquire the entirety of Nigerian Agip Oil Company Limited, and the specific financial details of this transaction have not been disclosed. This information was conveyed through an official statement issued by both companies on Monday.

As a result of this acquisition, Oando, primarily owned by Wale Tinubu, who is the nephew of President Bola Tinubu, will assume ownership of four onshore blocks (OML 60, 61, 62, 63) once Ministerial Consent and all necessary regulatory approvals are obtained.

“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”, the company stated.

ENI is moving its focus in Nigerian Market from onshore to offshore segment, as the firm intends to keep its other subsidiary, Nigeria Agip Exploration (NAE) and Agip Energy.

“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,” it wrote in the statement.

“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.”