Victor Ezeja
Italian Energy oil company, Eni, has announced that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has approved its bid to sell the Nigerian Agip Oil Company (NAOC), to Oando Plc.
In a statement released on Wednesday, the oil major stated that having gotten all other relevant approvals from the regulatory authorities, this latest one will enable it to proceed with completion of the transaction for the sale of NAOC to Oando Plc.
Join our WhatsApp ChannelPrime Business Africa had reported that Eni and Oando have agreed on acquisition of NAOC by Oando.
NAOC is Eni’s wholly owned subsidiary in Nigeria, focusing on onshore oil & gas exploration and production as well as power generation in Nigeria.
Oando Plc, Nigeria’s leading national energy solutions provider, listed on both the Nigerian and Johannesburg Stock Exchange, had also confirmed the deal.
Eni, however, said NAOC participating interest in Shell Production Development Company Joint Venture (SPDC JV) is not included in the transaction and will be retained in Eni’s portfolio. In the SPDC JV, Shell which is the operator has 30%, TotalEnergies 10%, NAOC 5%, NNPC 55%.
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The company said its focus now in Nigeria is on deepwater (offshore) projects and development of assets in other eco-friendly projects.
“Eni remains committed to the country through investments in deepwater projects and Nigeria LNG. Furthermore, the company is developing plans for economic diversification in the country which include assessing the potential production of agri-feedstock for Enilive biorefineries and various nature- and technology-based projects, such as clean cooking initiatives, to offset emissions,” the statement said.
Prime Business Africa reports that Eni has been operating in Nigeria since 1962, actively engaging in hydrocarbon exploration and production, as well as power generation. Currently, it has a substantial portfolio of assets in exploration and production, with an equity production of approximately 40,000 barrels of oil equivalent per day net of NAOC contribution. Eni also holds a 10.4% interest in Nigeria LNG.
The latest development reflects ongoing trend of multinational oil companies moving away from onshore oil exploration to deepwater oil and gas projects.
Background
Eni had in September 2023 agreed to sell NAOC to Oando Plc. However, the Nigerian National Petroleum Corporation (NNPC) Limited objected to the move, stating that Eni had not obtained the required regulatory body licences to sell its Nigerian assets.
However, Prime Business Africa reported some weeks ago that NUPRC Chief Executive, Gbenga Komolafe, confirmed that the regulatory authorities have now approved the energy company to go ahead with consummation of the transaction.
Other IOCs Exit Moves
Other IOCs that have divested their interests in onshore oil exploration in Nigeria include SPDC, ExxonMobil, and Norway’s Equinor.
Also, on 17 July, 2024, TotalEnergies announced that its subsidiary TotalEnergies EP Nigeria, signed a sale and purchase agreement (SPA) with Chappal Energies for the sale of its 10% interest in the SPDC JV licenses in Nigeria for $860 million. It is currently awaiting approval by the regulatory authorities.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
