The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that Oando PLC has successfully acquired 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd). This marks a significant milestone in Nigeria’s oil and gas sector.
NUPRC Chief Executive, Engineer Gbenga Komolafe, revealed the completion of this deal at the ongoing Oil and Gas Energy Week in Abuja. He stated, “Oando PLC, a leading indigenous energy solutions provider, has completed its divestment agreement with ENI for the acquisition of 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).”
This event, sponsored by the Nigerian National Petroleum Company (NNPC) Limited among others, provided a platform for Komolafe to update stakeholders on the status of several major acquisitions in Nigeria’s oil industry.
Other Acquisitions and Their Status
Komolafe also gave updates on three other significant acquisitions:
1. Equinor and Project Odinmim: This deal is completed, with the signing ceremony expected soon.
2. Shell Petroleum Development Company of Nigeria Limited (SPDC) and Renaissance Consortium: SPDC has submitted the necessary documents, which are currently undergoing due diligence.
3. Seplat and ExxonMobil Nigeria’s Offshore Shallow Water Operations: Seplat is committed to proceeding with the application for Ministerial Consent to NUPRC.
Addressing Delays in Divestment
Komolafe addressed the delays in concluding divestment processes, emphasizing the importance of following legal and best practices. He explained, “While we recognize the rights of investors to divest, the regulator maintains that this is done within the rule of law. Divestments in countries like Brazil, Canada, and the UK have had negative experiences, and we do not want that to happen here.”
He outlined the roadblocks investors must navigate to obtain approvals in Nigeria, including ensuring national interest security, financial and technical capability, and managing decommissioning and abandonment issues.
“The objective is that the seller will ensure that the buyer can demonstrate financial capacity, technical capability, and no legal encumbrances. Issues of decommissioning and abandonment will be well situated so that the nation does not end up carrying an unintended burden,” he added.
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Background and Future Plans
Oando initially announced the proposed acquisition of Agip from ENI, subject to Ministerial Consent and regulatory approvals. ENI confirmed the agreement, noting that it aligns with their 2023-2026 plan, and stated that they will continue their presence in Nigeria through Nigeria Agip Exploration (NAE) and Agip Energy.
The acquisition significantly increases Oando’s interests in oil mining leases (OMLs) 60, 61, 62, and 63, from 20% to 40%.
Previously, Project Odinmin Investments Limited proposed acquiring 100% of the issued shares of Equinor Nigeria Energy Company Limited. SPDC also clarified in court that its over $1.3 billion onshore oil assets sale to Renaissance Consortium is a share transaction, maintaining its Nigerian assets intact.
In related developments, NNPC recently filed a motion to discontinue legal action against subsidiaries of Mobil Nigeria and NUPRC as part of finalizing a settlement for the divestment of a 100% interest in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited.
These transactions, supervised under the NUPRC’s divestment framework, ensure that all activities are conducted transparently and in compliance with Nigerian regulations. This framework is designed to protect national interests and ensure the sustainability of the oil and gas sector in Nigeria.