Nigerian government has announced completion of the deal for acquisition of 100% Nigerian Agip Oil Company (NAOC), by Oando PLC.
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, who made the disclosure at Nigeria’s Oil and Gas Week in Abuja, said the signing ceremonies for the deal would come up any moment.
Join our WhatsApp Channel“NAOC-Oando divestment has been concluded. Signing ceremony will come up any moment,” NUPRC CEO said.
NAOC is Eni’s Nigerian subsidiary since 2013. Eni, an Italian oil giant, is considered one of the Super Majors in the world.
Eni had in September 2023 announced that it has signed an agreement with Oando PLC, a Nigerian indigenous energy solutions provider, to sell NAOC and focus on onshore oil & gas exploration and production in Nigeria, as well as power generation.
The completion of the acquisition deal marks a significant move in Nigeria’s oil and gas sector.
Prime Business Africa reports that NAOC currently holds stakes in four onshore blocks (Oil Mining Licenses 60, 61, 62, and 63) which it operates on behalf of NAOC JV (operator NAOC Ltd 20%, Oando 20%, NNPC E&P Limited 60%); in two power plant – Okpai 1 and 2; and in two onshore exploration leases – Oil Prospecting License (OPL) 282 and OPL 135.
Eni had said NAOC’s 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 is the operator with 30%, TotalEnergies 10%, NAOC 5%, and NNPC 55%.
“Following the transaction completion with Oando PLC, Eni will maintain its presence in Nigeria through Nigerian Agip Exploration (NAE) and Agip Energy and Natural Resources (AENR), reiterating the company’s commitment to its employees’ health and safety, as well as to the environment. Eni continues to operate in the country focusing on operated offshore activities,” Eni said earlier in a statement.
Seplat/ExxonMobil Deal
Speaking on the proposed $1.2 billion ExxonMobil downstream assets sale to Seplat Energy, the NUPRC boss said work is still in progress and yet to be concluded.
“On the MPN – SEPLAT expression of interest on commitment to apply for ministerial consent, we are yet to receive any as we speak,” Komolafe said.
Meanwhile, NNPC Limited and ExxonMobil have signed the settlement agreement on the proposed asset divestment to Seplat Energy Offshore Limited.
There is ongoing quests by IOCs including Shell and ExxonMobil, to sell off their onshore oil assets and fully migrate to offshore exploration amid recurring cases of theft, oil spills, and controversies with host communities who lament negligence and degradation of their environment.
As the oil majors continue the push to divest their onshore assets, environmental activists and stakeholders in the Niger Delta region call for justice over the impact of oil extraction activities in their communities for over seven decades.
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.
