Oando Plc has announced that it reached an agreement with Eni for the acquisition of a 100 percent stake in its subsidiary, Nigerian Agip Oil Company Limited (NAOC Ltd).

The completion of the transaction is subject to ministerial consent and other required regulatory approvals, according to a statement released by Oando.

The transaction Increases Oandos current participating interests in oil mining leases (OMLs) 60, 61, 62, and 63, from 20 percent to 40 percent.

The oil company said the transaction also increases its ownership stake in all NNPC Exploration and Production Limited (NEPL)/NAOC/OOL joint venture assets and infrastructure.

The assets listed include 40 discovered oil and gas fields (of which 24 are currently producing), approximately 40 identified prospects and leads, 12 production stations, and approximately 1,490 km of pipelines.

Others are three gas processing plants: the Brass River oil terminal, the Kwale-Okpai phases 1 and 2 power plants (with a total nameplate capacity of 960 megawatts), and associated infrastructure.

Based on 2021 reserves estimates, Oandos total reserves stand at 503.3MMboe and the transaction will deliver a 98 percent increase.

The transaction also grows Oandos exploration asset portfolio through the acquisition of a 90% interest in OPL 282 and 48% interest in OPL 135.

NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture “ operator Shell 30%, Total Energies 10%, NAOC 5%, NNPC 55%) is not included in the perimeter of the transaction and will be retained in Enis portfolio, the statement reads.

Group Chief Executive at Oando Plc, Wale Tinubu, in his comment on the acquisition, said, The synergies created by the acquisition will unlock unparalleled opportunities for the company 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.

Todays 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.

Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders and shareholders. (Channels TV)