Oando Plc has officially announced its acquisition of the entire shareholding of Nigerian Agip Oil Company Limited (NAOC) from Eni. This strategic move significantly strengthens Oando’s stake in the NEPL/NAOC/OOL Joint Venture, encompassing 40 oil and gas fields, 12 production stations, a sprawling 1,490-kilometer pipeline network, three gas processing facilities, the Brass River Oil Terminal, and associated infrastructure. The Italian oil major ENi signed an agreement with Oando, an energy solutions provider for the sale of all its stake in Nigerian Agip Oil Company Ltd (NOAC Ltd), a wholly –owned subsidiary focusing on onshore oil and gas exploration and production in Nigeria, as well as power generation, the Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN).
Oando is taking over ownership of both the assets and liabilities of NAOC. NAOC Ltd presently has interests across 4 onshore blocks (OML 60, 61, 62, 63), which it operates on behalf of NAOC JV (operator NAOC Ltd 20 percent, Oando 20 per cent, NNPC E&P Limited 60 percent), 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 percent and 48 percent) for which it also holds operatorship.
NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30 percent, TotalEnergies 10 percent, NAOC 5 percent, NNPC 55 percent) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio. Following the transaction completion with Oando PLC, as announced, Eni said it will maintain its presence in Nigeria through Nigerian Agip Exploration (NAE) and Agip Energy and Natural Resources (AENR). But Mr. Alagoa Morris, Programme Manager/Head, Niger Delta Resource Centre of the Environmental Rights Action/Friends of the Earth Nigeria, (ERA/FoEN) who spoke with Vanguard in Yenagoa said while Agip is at liberty to divest 100 per cent of the company’s assets or shares, the buyer (Oando) should be prepared to take over ownership of not only the assets but also the liabilities of NAOC. He said “this divestment move by the Nigerian Agip Oil Company (NOAC) is not entirely coming as a surprise to some industry watchers and those environmental bodies like ERA/FoEN that has effectively monitored the environment over the years as it relates to oil industry induced pollution.
“While Agip may be a liberty to divest 100 per cent of the company’s assets or shares, the caveat for the buyer is that they should beware; as they are to take over ownership both assets and liabilities of NOAC.
There are several legacy oil spill impacted sites from Agip facilities and, not forgetting existing legal matters in courts. Agip needs to fully disclose every such liability to the buyer and, if the buyer also fails to ensure it gets full disclosure; the buyer shouldn’t claim ignorance as that cannot be accepted as an excuse.”
