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Italian energy group Eni has signed an agreement to sell its unit Nigerian Agip Oil Company (NAOC) to Nigeria’s Oando, both companies announced on Monday.
Nigerian Agip Oil Company Ltd, a wholly owned subsidiary of Eni, is active in Nigeria in onshore hydrocarbon exploration and production and power generation.
The company holds interests in four onshore blocks – OML 60, 61, 62, 63. It also has interests in Okpai 1 and 2 power plants with an installed capacity of 960MW, and in two onshore exploration licenses – OPL 282 and OPL 135.
Oando said its is aquiring “100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).” Both companies did not provide the financial details of the deal.
The deal, which is subject to the approval of Nigeria’s regulatory authorities, does not cover NAOC’s 5% stake in the Shell Production Development Company (SPDC) joint venture operated by Shell, the group added.
The stake NAOC holds in SPDC JV – Shell Production Development Company Joint Venture – Shell operator 30 percent, TotalEnergies 10 percent, NAOC 5 percent, NNPC 55 percent – is outside the scope of the transaction and will remain in Eni’s portfolio.
Oando PLC signed the acquisition agreement on September 4, 2023. Oando PLC is a leading Nigerian energy company listed on both the Nigerian Stock Exchange and Johannesburg.
Commenting on the deal, Wale Tinubu, Group Chief Executive of Oando PLC said: “The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production.”
Latest divestment
Eni is the latest oil major to divest its asset in Nigeria. Shell and ExxonMobil have sold their local units to Nigerian firms.
Between 2010 and 2021, major transnational oil companies completed 26 significant sales, retaining interests only in deep-water production or leaving the country entirely, according to the Stakeholder Democracy Network, a nonprofit focusing on the impact of the extractives industry in the Niger Delta.
The companies say they’re divesting in favour of cleaner energy and because of security concerns in some areas. But the democracy group said the firms have also been unsettled by recent cases in which affected Niger Delta communities successfully sued companies for damage to the Niger Delta in U.K. and Dutch courts.
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