Oando Plc has bought a 100 per cent stake in the Nigerian Agip Oil Company from Italian energy firm, Eni, in a deal valued at $783m.

This was made known in a notice filed on the Nigeria Exchange Limited on Thursday, August 22, 2024.

According to Oando, the acquisition is in line with its strategy to boost its upstream operations in the country’s oil and gas industry.

The notice read: “We are pleased to announce the successful completion of the acquisition of 100 per cent of the shareholding interest in the Nigerian Agip Oil Company from the Italian energy company, Eni, for a total consideration of US$783m comprised of consideration for the asset and reimbursement (the “transaction”).”

The newly acquired assets are 40 oil and gas fields, with 24 currently producing, as well as 1,490 kilometres of pipelines, 12 production stations, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai power plants, with a combined capacity of 960MW.

Oando added that due to the acquisition, its total reserves had increased by 98 per cent, from 505.6 million barrels of oil equivalent to one billion barrels of oil equivalent.

It said: “Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe.”

The Group Chief Executive of Oando, Wale Tinubu, said the deal was a culmination of a decade-long journey that started with the company’s 2014 entry into the Joint Venture through the acquisition of ConocoPhillips Nigerian assets.

“This is a major win for Oando and the entire indigenous energy sector.

"With full control of these assets, we are in a stronger position to drive Nigeria’s upstream growth while ensuring sustainable practices in our host communities,” Tinubu stated.