Eni to sell NAOC Ltd to Oando PLC, reaffirms commitment to Nigeria

Eni, a major player in the oil and gas industry, has announced its agreement with Nigeria’s premier indigenous energy provider, Oando PLC. Oando PLC, listed on both the Nigerian and Johannesburg Stock Exchange, will acquire Nigerian Agip Oil Company Ltd (NAOC Ltd), an Eni-owned subsidiary. NAOC Ltd is renowned for its onshore oil & gas exploration, production in Nigeria, and power generation activities.

Key Assets Included in the Oando and Eni Deal

NAOC Ltd boasts a robust portfolio with interests spanning four onshore blocks in Nigeria (OML 60, 61, 62, 63), operating on behalf of NAOC JV. The joint venture consists of NAOC Ltd holding a 20% stake, Oando with 20%, and NNPC E&P Limited possessing the majority 60%. Additionally, NAOC Ltd operates in the Okpai 1 and 2 power plants, which have a cumulative capacity of 960MW, and two onshore exploration leases (OPL 282 and OPL 135) with significant ownership.

Exclusions and Continuity for Eni in Nigeria

However, the deal excludes NAOC Ltd’s interests in SPDC JV (Shell Production Development Company Joint Venture). This particular venture, where Shell operates with a 30% stake, alongside TotalEnergies with 10%, NAOC holding 5%, and NNPC at 55%, will remain within Eni’s diverse portfolio. Post-transaction, Eni’s commitment to Nigeria remains undeterred. The company will continue its operations through Nigerian Agip Exploration (NAE) and Agip Energy and Natural Resources (AENR), emphasizing its dedication to health, safety, and the environment. Eni’s focus will pivot to offshore activities that they operate, while participations in assets operated by others will also remain intact.

Eni’s Strategic Move Aligns with 2023-2026 Plan

This transaction aligns seamlessly with Eni’s strategic plan for 2023-2026. As part of its vision, the Upstream segment will complement growth with high-grading activities, adding invaluable resources. Simultaneously, the divestment aims to present resources to new owners, opening avenues for enhanced value and opportunities.

The successful conclusion of this monumental deal awaits the green light from local regulatory bodies and relevant authorities, marking a pivotal shift in the energy landscape of Nigeria.