Italian energy giant Eni has declared the signing of an agreement to sell its wholly-owned subsidiary, Nigerian Agip Oil Company Ltd (NAOC Ltd), to Oando PLC. Oando PLC, an energy solutions provider, is prominently listed on both the Nigerian and Johannesburg Stock Exchange.
NAOC Ltd has primarily been engaged in onshore oil & gas exploration and production within Nigeria, as well as power generation. It possesses interests in four onshore blocks, namely OML 60, 61, 62, and 63. NAOC Ltd operates these blocks on behalf of NAOC JV, wherein the operator, NAOC Ltd, holds a 20% stake, Oando owns 20%, and NNPC E&P Limited possesses a dominant 60% share. Apart from these onshore blocks, the company also maintains a significant presence in the Okpai 1 and 2 power plants which boast a combined nameplate capacity of 960MW. Additionally, NAOC Ltd has interests in two onshore exploration leases, OPL 282 (with a 90% stake) and OPL 135 (holding 48%), for both of which it also holds operatorship.
However, it’s pivotal to note that NAOC Ltd’s participating interest in the SPDC JV (Shell Production Development Company Joint Venture) does not fall within this transaction’s scope. In this joint venture, while Shell is the operator with 30%, TotalEnergies has a 10% stake, NAOC holds 5%, and NNPC claims the largest slice with 55%. This specific interest will continue to remain as part of Eni’s portfolio.
Following the conclusion of this sale to Oando PLC, Eni has made clear its intent to sustain its operations in Nigeria. This commitment will be upheld through its other entities – Nigerian Agip Exploration (NAE) and Agip Energy and Natural Resources (AENR). Eni said it remains steadfast in emphasizing its devotion to ensuring the health and safety of its workforce in the region, as well as prioritising environmental concerns. Eni’s operational focus within Nigeria will pivot to managed offshore activities, but the company will also retain its stakes in assets operated by other entities, both onshore and offshore. Additionally, Eni’s engagement with Nigeria LNG remains unchanged.
The company said envisages its Upstream sector to harmoniously complement its core organic growth with dynamic inorganic high-grading activity. This approach seeks to assimilate resources offering incremental value while also offloading resources that are better poised to provide increased value and avenues for potential new proprietors.
The finalisation of the transaction with Oando is contingent upon securing the necessary approvals from relevant local and regulatory authorities.