Oando Secures $800m Afreximbank Commitment for Agip’s Assets Acquisition

Peter Uzoho

Afreximbank and Oando Plc, one of Nigeria’s leading indigenous energy solutions provider, yesterday, signed an $800 million loan document to facilitate the energy giant’s acquisition of 100 per cent of the shares of the Nigerian Agip Oil Company (NAOC).

The deal was signed at the ongoing Intra-African Trade Fair (IATF) in Cairo, Egypt.

On Monday, September 4, 2023, Oando Plc had announced that it had reached an agreement with Eni, an Italian multinational energy company with operations in 62 countries, including Nigeria, for the acquisition of 100 per cent of the shares of the NAOC.

The deal was a significant and strategic acquisition of 20 per cent participating interest in the Nigerian Agip Oil Company Limited across OMLs 60, 61, 62 and 63.

Upon completion of the assets acquisition transaction, subject to Ministerial Consent and other required regulatory approvals, Oando’s current participating interests in OMLs 60, 61, 62, and 63 would rise from 20 per cent to 40 per cent.

The transaction would further increase Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty discovered oil and gas fields, of which 24 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.

If one thing has reverberated across the IATF 2023, it’s deal signing. Since the commencement of the IATF, Afreximbank has signed over 10 financing deals with companies across different sectors to facilitate Africa’s growth ambitions.

The collaboration signed at IATF2023 was more than financing as it’s about fostering growth and strengthening partnerships across borders for Africa’s growth ambitions.

The Group Chief Executive, Oando Plc, Wale Tinubu, had while commenting on the deal to acquire Agip’s assets, said the agreement underscored the role indigenous actors would play in the future of the Nigerian upstream sector.

“The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimise 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,” he had stated.

According to Tinubu, having achieved the significant milestone, Oando was looking forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for local communities, stakeholders and shareholders.