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Tag: Oando

  • Shareholders excited over Oando’s N104.1b profit

    Shareholders excited over Oando’s N104.1b profit

    Shareholders yesterday expressed optimism on the performance outlook of Oando Plc, after the indigenous energy provider recorded a major turnaround in profitability with a pre-tax profit of N104.1 billion in 2023.

    Shareholders said the recovery, from previous streak of losses, underlined the relentless efforts of the board and management to turn around the company.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, described the latest earnings report of Oando as a “cheering news” to shareholders.

    He said sustaining such performance would bring much joy and celebration to shareholders, urging the management of the company to improve on the performance in the next quarters.

    National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, said shareholders invest in companies to reap rewards and are always happy to see a positive turnaround in the fortunes of companies.

    “I’m very glad and excited about the news. This shows that the board and management are not relenting in turning around the company to profitability. We hope the same trend will continue for the first and second quarters of 2024. We hope the 2023 profit is sustained in many years to come.

    “The reason we invested is to get good returns on our investment, either through dividend or capital appreciation. So, we are happy and glad for Oando’s 2023 financial results,” Bakare said.

    Chairman, Ibadan Zone Shareholders Association, Mr. Eric Akinduro, said Oando appeared to be out of the wood.

    “It is our expectation that the trend will be sustained so that investors can enjoy capital appreciation,” Akinduro said.

    Key extracts of the interim report and accounts of Oando for the year ended December 31, 2023 released at the Nigerian Exchange (NGX) showed significant improvements in sales and profitability of the company.

    Turnover rose by 71 per cent from N1.9 trillion in 2022 to N3.4 trillion in 2023. As against net loss of N81.2 billion in 2022, the company recorded net profit of N74.7 billion in 2023. Pre-tax profit stood at N104.1 billion in 2023, compared with pre-tax loss of N61.84 billion in 2022.

    Read Also: Oando’s turnover grew to N3.4trn in 2023 – Tinubu

    The report also highlighted significant reduction of 23 per cent in the group’s upstream borrowings from $635.6 million in 2022 to $488.9 million in 2023.

    The performance of the group was driven by considerable improvements in major business categories with trading operations rising by 50 per cent. Traded crude oil volumes rose to 32.8 million bbls in 2023 as against 21.8 million bbls in 2022. Traded refined petroleum products dropped by 15 per cent to 1.646 million MT in 2023 compared with 1.938 million MT in 2022.

    The upstream saw increase in production from 20,703 boepd in 2022 to 20,837 boepd in 2023, despite the challenges in the oil producing region. Oil production stood at 6,024bbls/day in 2023 as against 4,939bbls/day in 2022. Natural gas production stood at 14,572boe/day in 2023 compared with 15,292boe/day in 2022. NGL production was 241bbls/day in 2023 as against 472bbls/day in 2022.

    The release of the 2023 results brings the company a step closer to being in line with regulatory requirements for all listed companies. It indicates that by the end of this year, Oando will be on track with its peers in reporting results thus giving confidence to shareholders and investors on the company’s current state and future.

    2023 has seen Oando push forward with its growth agenda, recording positive highlights, including the signing of a Sale & Purchase Agreement (SPA) with Italian oil major, Eni to acquire one of its local subsidiaries, the Nigeria Agip Oil Company Limited (NAOC).

    In addition, its clean energy arm, Oando Clean Energy Limited (OCEL) launched its electric mass transit buses in partnership with the Lagos State government, signaling that things are beginning to look up for the indigenous giant.

    Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said the results showed that the company has weathered the storm and on track to consolidate future growth.

    According to him, despite the persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, the profit after tax of N 74.7 billion in 2023 was largely driven by increased trading volumes due to strategic global partnerships and net foreign exchange gains on the group’s foreign currency denominated assets as against losses on foreign currency denominated liabilities.

    He noted that the milestone signing of the Sale and Purchase Agreement with Eni towards the acquisition of 100 per cent of the shares of NAOC Ltd, marked a pivotal moment for the company as it is poised to unlock substantial synergies in the near future.

    “Our focus is now on completing the acquisition and seamlessly integrating operations to deliver exceptional value to our shareholders.

    “Having weathered the storm of recent years, our latest results provide a foundation for us to consolidate and build for the future. With our planned acquisition of NAOC, we are positioned to take full operatorship and drive-up outputs, value and efficiencies.

    “Moreover, our foray into and leadership in clean energy expand our footprint as a fit and proper integrated energy company with our feet firmly planted in today’s realities and the possibilities of the future,” Tinubu said.

    Nigeria had seen a decline in national oil output, precipitated by pipeline vandalism, oil theft and illegal refining, against this backdrop Oando’s Upstream operations saw average daily production increase marginally by one per cent to 20,837 boepd in 2023 vs 20,703 boepd in 2022.

  • Oando turns around with N104.1b profit

    Oando turns around with N104.1b profit

    Oando Plc has seen a major turnaround in profitability as the indigenous energy solutions provider recorded profit of N104.1 billion in 2023. The company had suffered losses in previous periods.

    Key extracts of the interim report and accounts for the year ended December 31, 2023 released at the Nigerian Exchange (NGX) showed significant improvements in sales and profitability of the company.

    Turnover rose by 71 per cent from N1.9 trillion in 2022 to N3.4 trillion in 2023. As against net loss of N81.2 billion in 2022, the company recorded net profit of N74.7 billion in 2023. Pre-tax profit stood at N104.1 billion in 2023, compared with pre-tax loss of N61.84 billion in 2022.

    The report also highlighted significant reduction of 23 per cent in the group’s upstream borrowings from $635.6 million in 2022 to $488.9 million in 2023.

    The performance of the group was driven by considerable improvements in major business categories with trading operations rising by 50 per cent. Traded crude oil volumes rose to 32.8 million bbls in 2023 as against 21.8 million bbls in 2022. Traded refined petroleum products dropped by 15 per cent to 1.646 million MT in 2023 compared with 1.938 million MT in 2022.

    The upstream saw increase in production from 20,703 boepd in 2022 to 20,837 boepd in 2023, despite the challenges in the oil producing region. Oil production stood at 6,024bbls/day in 2023 as against 4,939bbls/day in 2022. Natural gas production stood at 14,572boe/day in 2023 compared with 15,292boe/day in 2022. NGL production was 241bbls/day in 2023 as against 472bbls/day in 2022.

    The release of the 2023 results brings the company a step closer to being in line with regulatory requirements for all listed companies.  It indicates that by the end of this year, Oando will be on track with its peers in reporting results thus giving confidence to shareholders and investors on the company’s current state and future.

    2023 has seen Oando push forward with its growth agenda, recording positive highlights, including the signing of a Sale & Purchase Agreement (SPA) with Italian oil major, Eni to acquire one of its local subsidiaries, the Nigeria Agip Oil Company Limited (NAOC).

    In addition, its clean energy arm, Oando Clean Energy Limited (OCEL) launched its electric mass transit buses in partnership with the Lagos State government, signaling that things are beginning to look up for the indigenous giant.

    Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said the results showed that the company has weathered the storm and on track to consolidate future growth.

    According to him, despite the persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, the profit after tax of N 74.7 billion in 2023 was largely driven by increased trading volumes due to strategic global partnerships and net foreign exchange gains on the group’s foreign currency denominated assets as against losses on foreign currency denominated liabilities.

    He noted that the milestone signing of the Sale and Purchase Agreement with Eni towards the acquisition of 100 per cent of the shares of NAOC Ltd, marked a pivotal moment for the company as it is poised to unlock substantial synergies in the near future.

    “Our focus is now on completing the acquisition and seamlessly integrating operations to deliver exceptional value to our shareholders.

    Read Also: Oando chief warns against over reliance on IOCs

    “Having weathered the storm of recent years, our latest results provide a foundation for us to consolidate and build for the future. With our planned acquisition of NAOC, we are positioned to take full operatorship and drive-up outputs, value and efficiencies.

    “Moreover, our foray into and leadership in clean energy expand our footprint as a fit and proper integrated energy company with our feet firmly planted in today’s realities and the possibilities of the future,” Tinubu said.

    Nigeria had seen a decline in national oil output, precipitated by pipeline vandalism, oil theft and illegal refining, against this backdrop Oando’s Upstream operations saw average daily production increase marginally by one per cent to 20,837 boepd in 2023 vs 20,703 boepd in 2022.

  • TAP marks 4th empowerment

    TAP marks 4th empowerment

    The Aggregator Programme (TAP) at the weekend marked the fourth anniversary of its intervention in lifting the under-privileged.

    The organisation, which is made up of  Oando employees (#HumansOfOando) has the goal to relieve hunger in Nigeria’s most vulnerable communities through feeding .

    Conceived in April 2020, TAP was designed as a short-term solution to alleviate hunger during the COVID-19 pandemic in Nigeria. The initiative recognised that there was a huge gap, despite contributions and efforts made by the government, public and private sector players as well as Non-Governmental Organisations (NGOs) to feed the less privileged, according to a statement.

    Through TAP, the Humans of Oando have continued to rally donors to keep the cause thriving and  has   celebrated  it’s  charity’s fourth anniversary on  April 27

    Read Also: Mushin lawmaker reiterates commitment to digital skills empowerment

    Since its inception, the Programme has evolved its approach to tackling hunger through its feed, empower, and uplift initiative to ensure a portion of the individuals who benefit from the feeding program also learn a skill and thus, are equipped to generate income for themselves.

    In its four  years of feeding and empowering Nigerians, TAP has been able to reduce incidents of food insecurity among indigent communities by positively impacting circa 8,645 households, 37,550 individuals across over 33 communities in Lagos, all achieved by leveraging its 11 implementing partners such as Lagos Food Bank, Abraham’s Tent, Project Ark, JAKINS, Siddiqah Foundation, and others.

    To achieve the following Food Donation Drives in the past year, TAP collaborated with Siddiqah Foundation, a personal and community development organization built to impact the lives across the world through support and empowerment of stigmatized groups. The purpose of these drives was to donate food and other essentials to those in need.

    •         On May 6,  last year, at the Destitute Home in Ebute Metta, over 320 families were positively impacted.

  • Oando chief warns against over reliance on IOCs

    The Group Chief Executive, Oando PLC, Adewale Tinubu, has cautioned against an over-reliance on International Oil Companies (IOCs), advocating instead for empowerment of national companies, aggressively ensuring skills transfer, and building a robust indigenous energy sector.

    Tinubu, in a keynote address entitled: “The Winning Oil & Gas Industry Strategy”  which he delivered at the  third Guyana Energy Conference and Supply Chain Expo, in Georgetown, also emphasised the need for policy reforms, national infrastructure development, and proactive planning for population growth as critical elements for success in the sector. The conference had as its theme: “Fuelling Transformation and Modernisation.”

    Although he called for strategic partnerships of countries and operators in the sector, Tinubu cautioned countries against subsidies, emphasising instead the need for unifying foreign exchange rates and diversifying energy sources for long-term resilience, including investing in people and recognising them as an asset in driving the industry forward.

    Drawing from experiences in Nigeria, where crude oil theft and pipeline vandalism account for a daily decline of over 400,000 barrels of crude oil, the Oando boss emphasised that there was the need for proactive approach to challenges such as operational security threats, insisting that there is the need for strategic planning and international cooperation to effectively resolve these challenges, which he noted to include operational costs, infrastructure deficiencies, and regulatory frameworks.

    Read Also: Time has preserved Awo’s principles, legacies – Tinubu

    Tinubu further highlighted crucial steps essential to the development of the oil and gas sector in Guyana, including creating an enabling environment, establishing alternative financing institutions, and maximising opportunities during peak oil prices.

    He stressed the importance of proactive investments in infrastructure ahead of demand and linked GDP growth as a lifeline for economic activities to thrive beyond the oil sector.

    Guyana’s oil industry has rapidly ascended to a unique position in the global energy terrain with the discovery of the offshore Stabroek Block, exceeding nine billion barrels of oil equivalent. Since 2015, the country has become a notable player, echoing the trajectory of Nigeria’s oil industry in its early years. Both Guyana and Nigeria share the narrative of substantial offshore oil discoveries, marking economic opportunities that have significantly influenced their GDPs.

  • Cross River partners Oando on Renewable Energy

    Cross River partners Oando on Renewable Energy

    A renewable energy plan for Cross River State was unfolded yesterday following the signing of a Memorandum of Understanding (MoU) between the state and Oando Clean Energy (OCEL), the renewable energy business subsidiary of Oando Energy Resources, a part of the Oando PLC Group.

    The agreement was signed in Dubai as a sideline of the ongoing COP28 summit in United Arab Emirates (UAE).

    The MoU will facilitate the rollout of electric vehicles for mass transportation within the state, setting up an electric vehicle (EV) assembly plant, thus creating jobs for local indigenes as well as building a 100MW wind plant for power generation. 

    Representing Governor of Cross River State, Senator Prince Bassey Otu at the MOU signing was the Commissioner for Special Duties, Mr. Oden Ewa. Ewa said: “This landmark agreement marks a significant step forward in Cross Rivers’ journey towards a cleaner and more sustainable future. The MOU paves the way for the transitioning of our mass transit system to cleaner and less expensive fuels whilst also allowing for the use of our natural resource, wind to provide electrification for our people”.

    Read Also: Sanwo-Olu swears in two new exco members

    He added: “I commend Oando Clean Energy for their innovative solutions that address the impact of climate change in Nigeria and her citizens”.

    OCEL President / CEO, Dr. Ainojie Irune said: “As a company, we are committed to ensuring that this journey to a cleaner and more sustainable energy future is as seamless and as easy as possible. By putting our confidence in, not only the technology but the partnership and ensuring that the Cross River State Government and her people reap the benefits of generating power from sustainable sources”.

    He added: “Oando Clean Energy’s scope spans the entire 35 states of the federation and the FCT; and with one state at a time, we will create a cleaner, more viable energy ecosystem for Nigeria and our people”.

    Some of those who were at the pavilion include Minister of the Niger Delta, Abubakar Momoh; Minister of the Environment, Balarabe Lawal; Minister of State for Environment, Dr. Kunle Salako; Director General, (NCCC), Dr Salisu Dahiru.

  • Oando, gets $800m for NAOC acquisition

    Oando Plc has secured a $800 million loan agreement with African Export-Import Bank (Afreximbank) to facilitate the indigenous energy group’s acquisition of the entire share capital of Nigerian Agip Oil Company (NAOC).

    The loan agreement was signed yesterday at the on-going Intra-African Trade Fair (IATF2023) in Cairo, Egypt.

    Oando had in September 2023 announced that it had reached an agreement with Eni, an Italian multinational energy company with operations in 62 countries, including Nigeria, for the acquisition of 100 per cent of the shares of NAOC.

    The $800 million loan deal between Oando and Afreximbank was hailed as a significant step in fostering Africa’s growth aspirations, with Oando trailblazing efforts in diversified and sustainable energy.

    Afreximbank has signed deals woth $2 billion since the beginning of IATF2023, in a bold move aimed at fostering growth and strengthening partnerships across borders for Africa’s growth ambitions.

    Upon completion of the assets acquisition transaction, subject to Ministerial Consent and other required regulatory approvals, the transaction would increase Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent.

    The Nigerian National Petroleum Company Limited (NNPCL) has said it had not raised any objection to the sale of NAOC’s shares to Oando.

    Oando had outlined that the transaction would increase its ownership stake in all NEPL/NAOC/OOL Joint Venture (JV) assets and infrastructure which include 40 discovered oil and gas fields, of which 24 are currently producing and approximately 40 identified prospects and leads.

    The JV assets and infrastructure also include 12 production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants-with a total nameplate capacity of 960MW, and associated infrastructure.

    Read Also: Partial compliance as Lagos workers join NLC strike

    Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction is expected to deliver a 98 per cent increase.

    The transaction will also grow Oando’s exploration asset portfolio through the acquisition of a 90 per cent interest in OPL 282 and 48 per cent interest in OPL 135.

    However, NAOC’s participating interest in SPDC JV-Shell Production Development Company Joint venture – operator Shell 30 per cent, TotalEnergies 10 per cent, NAOC 5.0 per cent, NNPC 55 per cent, is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.

    Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said the synergies created by the acquisition would unlock unparalleled opportunities for the group to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production.

    According to him, the acquisition is in alignment with Oando’s strategy of acquiring, enhancing, appraising, and efficiently developing reserves.

    He said the acquisition deal was 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,” Tinubu said.

  • Africa has innate potential to become major world’s economic bloc, says Oando

    Africa has innate potential to become major world’s economic bloc, says Oando

    Africa has the vast resources and other potential to become a major world’s economic bloc but there is need for urgent collaborative efforts by governments and private sector stakeholders to unlock the full potential of the continent.

    At the Intra-Africa Trade Fair 2023 in Cairo, Egypt, the need for Africa to unite, prioritise its growth and remove self-imposed barriers to realise its industrialisation ambitions was a major theme of the discource.

    Speaking on realising Africa’s growth agenda through the energy transition, Executive Director, Oando Plc and Chief Operating Officer, Oando Energy Resources, Dr. Ainojie Irune called on governments to grow impatient about developing the continent.

    In a session with the  theme: African Energy Transition and African Industrialisation, Irune said Africa is truly blessed across the entire value chain and has everything needed to ensure that the energy transition for Africa serves its people.

    He stressed the need for governments to collaborate between regions and establish the required policies internally and externally to drive; not just trade, but the development of industries that would create the wealth the continent need to embark on the energy transition.

    According to him, Africa is the final frontier and it has a responsibility to design what it desires.

    “Africa is home to 39 per cent of the world’s renewable energy potential, yet is impoverished. A continent that is unable to feed its people, educate its people, must think, first, about survival, just like the rest of the world. So, we must get impatient about developing our continent together,” Irune said.

    He pointed out the challenges of intra-Africa trade and preferred solutions to foster regional cooperation, noting that regional cooperation in Africa is important and must be given the required attention.

    Read Also: NNPCL restores production of 275,000bopd

    “We talk about collaboration, yet as we speak today, we haven’t dealt with the issue of intra-Africa travel for tourism, nor business. To challenge the current tide against us, we have to look within, starting from our governance and policies. If we come together and throw our weight behind our agenda as a continent, we would become a powerful bloc to be reckoned with across the world. We need to build a consciousness that recognises the fact that everything we require to develop Africa is already within,” Irune said.

    He pointed out that intra-African trade currently accounts for only 15 per cent of the continent’s total trade, compared to 58 per cent in Asia and 67 per cent in Europe, noting that as the new continental market emerges with opportunities, those opportunities will not be to the benefit of Africans if African markets are not connected to create economies of scale.

    It is now generally agreed that the African Continental Free Trade Agreement (AFCFTA) presents Africa with an efficient shock absorber to the volatile global economy. Intra-African trade, in turn, provides the continent with an opportunity to accelerate its individual and collective efforts as governments, policy-makers, development institutions, corporate organisations and SMEs towards the realisation of the goals of the AfCFTA.

    The AfCFTA is expected to boost intra-African trade by 52.3 per cent by 2025, increase Africa’s income by up to $450 billion by 2035, according to the IMF, and lift 30 million Africans out of extreme poverty.

  • Consider nearness to gas during investment, Oando advises

    Consider nearness to gas during investment, Oando advises

    Investors have been urged to set up their plants close to areas with natural gas reserves.

     This is because it will aid a huge cut in their operational cost and ensure they benefit from a multiplier effect arising from this.

    General Manager, Commercial, Oando Energy Resources, Akinbambo Ibidapo-Obe, gave the advice at a plenary themed ‘Utilising natural gas as a key energy source,’ at the African Natural Resource and Energy Investment Summit, in Abuja.

    According to him, Nigeria is among the world’s leading gas-producing countries, yet only less than 15 per cent of our gas is utilised.

    He emphasised that Nigerians should identify the less utilisation of the gas resources as an opportunity to develop the country’s industrial capacity.

    He said: “We should consider locating these industries where the resources are abundant.

    “It is essential to build industries where the gas can have a multiplier effect, such as developing the host communities and increasing job opportunities. Many industrial costs are related to continuity.’’

    Ibidapo-Obe added: “Natural gas holds the potential to shape Nigeria’s sustainable energy future.

    Read Also: Oando acquires NAOC’s upstream oil assets

    Commenting on the energy transition in African perspective, the GM, said: “We need to view the concept of an ‘energy transition’ as an opportunity for change.

    “At least until 2040, the top four renewable energy sources are natural gas, oil, wind and solar.’’

    On the controversy over energy security amid growing call for energy transition, Ibidapo-Obe stated that he does not believe Nigerians should panic.

    According to him, “Energy transition is about integrating traditional energy with alternative solutions.

    “This is not a time to panic but an opportunity to leverage new possibilities, develop infrastructure, secure long-term planning, and reduce costs, we can use reserves and promote renewable energy.

    “Stay calm and see the available opportunities.’’

    He said Oando is exploring several renewable energy initiatives through its subsidiary, Oando Clean Energy.

  • NNPCL not opposed to sale of NAOC’s shares to Oando

    NNPCL not opposed to sale of NAOC’s shares to Oando

    Nigerian National Petroleum Company Limited (NNPCL) said it has not raised any objection to the sale of Nigerian Agip Oil Company Limited (NAOC)’s shares to Oando Plc.

    NNPCL regretted that a routine letter from its NNPC E&P Limited  (NEPL) to its JV Partner, NAOC was misintepreted as opposition to the sale.

    Chief Communication Officer, Nigerian National Petroleum Company Limited (NNPCL), Malam Garba Deen Muhammad, yesterday in Abuja, stated that the letter  sent to the subsidiary did not in any way imply objection to the sale of NAOC’s shares to Oando.

    According to him, NEPL was only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error. Adherence to those clauses would protect the transaction, now and in the future.

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    “It has come to our notice that a routine communication in the form of a letter written by NNPC E&P Limited (NEPL) to its JV Partner, Nigerian Agip Oil Company Limited (NAOC) is being interpreted to suggest that NNPC Ltd is opposed to the sale of NAOC shares to Oando PLC. This is not correct.

    “NNPC Ltd wishes to state that the letter was sent by NEPL, an NNPC Ltd. subsidiary.

    “However, nowhere was opposition or objection to the transaction mentioned in the letter.

    “NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error. Adherence to those clauses will protect the transaction, now and in the future.”

  • Oando acquires NAOC’s upstream oil assets

    Oando acquires NAOC’s upstream oil assets

    • Oil reserves double

    Oando Plc has reached agreement with ENI to acquire 100 per cent ownership stake in Nigerian Agip Oil Company Limited (NAOC), in a deal that nearly doubles Oando’s total oil reserves.

    In a regulatory filing yesterday, Oando said the transaction would increase Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent.

    Oando’s share price rose by 9.91 per cent to close at N6.10 per share at the Nigerian Exchange (NGX).

    Oando outlined that the transaction would increase its ownership stake in all NEPL/NAOC/OOL Joint Venture (JV) assets and infrastructure which include 40 discovered oil and gas fields, of which 24 are currently producing and approximately 40 identified prospects and leads.

    The JV assets and infrastructure also include 12 production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants-with a total nameplate capacity of 960MW, and associated infrastructure.

    Read Also; Tolling of federal highways to go on, says Umahi

    Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and the transaction is expected to deliver a 98 per cent increase.

    The transaction will also grow Oando’s exploration asset portfolio through the acquisition of a 90 per cent interest in OPL 282 and 48 per cent interest in OPL 135.

    However, NAOC’s participating interest in SPDC JV-Shell Production Development Company Joint venture – operator Shell 30 per cent, TotalEnergies 10 per cent, NAOC 5.0 per cent, NNPC 55 per cent, is not included in the perimeter of the transaction and will be retained in Eni’s portfolio.

    Oando noted that the completion of the transaction is subject to Ministerial Consent and other required regulatory approvals.

    Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said the synergies created by the acquisition would unlock unparalleled opportunities for the group to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production.

    According to him, the acquisition is in alignment with Oando’s strategy of acquiring, enhancing, appraising, and efficiently developing reserves.

    “Today’s 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,” Tinubu said.