Nigerian Agip Sells its Onshore Operated Assets to Oando - Africa’s premier report on the oil, gas and energy landscape.

Nigerian Agip Sells its Onshore Operated Assets to Oando

Italian major ENI has announced the signing of an agreement with NSE & JSE listed  Oando PLC – for the sale of Nigerian Agip Oil Company Ltd (NAOC Ltd), the wholly ENI-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.

NAOC Ltd is present with interests in Nigeria across four onshore blocks (OML 60, 61, 62, 63), which it operates on behalf of NAOC JV (operator NAOC Ltd 20%, Oando 20%, NNPC E&P Limited 60%), in the Okpai 1 and 2 power plants (with a total nameplate capacity of 960MW), and in two onshore exploration leases (OPL 282 and OPL 135, respectively 90% and 48%) for which it also holds operatorship.

The assets’ gross output is around 30,000Barrels of Oil Per Day and 500Million standard cubic feet per day of gas. On an output basis, it is the least performing Joint Venture among the five JVs operated by oil majors in Nigeria.

NAOC Ltd’s participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30%, TOTALEnergies 10%, NAOC 5%, NNPC 55%) is not included in the perimeter of the transaction and will be retained in ENI’s portfolio.

Following the transaction completion with Oando PLC, ENI will maintain its presence in Nigeria through Nigerian Agip Exploration (NAE) and Agip Energy and Natural Resources (AENR), reiterating the company’s commitment to its employees health and safety, as well as to the environment. ENI continues to operate in the country focusing on operated offshore activities. Participations in operated-by-others assets, both onshore and offshore, and Nigeria LNG will remain in ENI portfolio too.

The transaction is consistent with ENI2023-2026 Plan. The Upstream will supplement the core organically led growth with inorganic high-grading activity, adding resources with incremental value while divesting resources that can offer greater value and opportunities to new owners.

The closing of this transaction is subject to, inter alia, the authorization of all relevant local and regulatory authorities.

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