Oando, Nigeria’s leading indigenous energy solutions provider, has secured an $800 million loan from the African Export-Import Bank (AfreximBank) to acquire 100% of the shares of the Nigerian Agip Oil Company (NAOC). The loan agreement was signed at the Intra-African Trade Fair in Egypt Cairo
The moderator of the deal signing described it as “… a significant and strategic acquisition of 20% participating interest in the Nigerian Agip Oil Company Limited across OMls 60, 61, 62 and 63.”
Recall that on Monday, September 4, 2023, Oando PLC 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% of the shares of the Nigerian Agip Oil Company (NAOC).
The acquisition of NAOC is a significant milestone for Oando, as it will enable the company to expand its operations and strengthen its position in the oil and gas industry. The acquisition will also help Oando to increase its production capacity and improve its profitability
Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, which consists of forty discovered oil and gas fields, twenty-four of which are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), would be further increased by the transaction
The IATF 2023, since commencing on the 9th of November, has been replete with deal signing, reiterating AfreximBank’s support and commitment to pushing the African continent forward.
The loan from AfreximBank will provide Oando with the necessary financial resources to complete the acquisition of NAOC . The acquisition is expected to be completed in the coming months.
Source: Punchng, The Sun, This day live
