By Emmanuel Nduka
The Nigerian government has approved the proposal of Italian oil giants, Eni to sell its Nigerian subsidiary, Nigerian Agip Oil Company (NAOC), to Oando PLC, owned by Wale Tinubu, President Bola Tinubu’s nephew.
The transaction, which still requires ministerial clearance and other regulatory approvals, was announced on Wednesday in a statement. “Eni has received formal consent from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the sale of NAOC Ltd to Oando Plc,” the Italian firm stated.
Heritage Times HT reports that NAOC’s assets include numerous oil and gas fields, production stations, and extensive pipeline networks, excluding its 5% stake in the Shell Production Development Company Joint Venture, which Eni will retain.
Eni said the sale would enable Agip focus on its onshore oil operations.
The transaction stated that one of the conditions for the president to restore Eni and Shell oil prospective licence OPL 245 last year was the transfer of Eni’s onshore assets to Oando, People Gazette reported.
“Having already obtained all other relevant local and regulatory authorities’ authorisations, this achievement will allow Eni to proceed to the completion of the transaction for the sale of Nigerian Agip Oil Company Ltd (NAOC Ltd), Eni’s wholly owned subsidiary focusing on onshore oil & gas exploration and production as well as power generation in Nigeria, to Oando PLC, Nigeria’s leading national energy solutions provider,” the Eni statement added.
Eni, however, excluded a five per cent stake in the Shell Production Development Company Joint Venture (SPDJV), stating that it was not covered in the business transaction.
“NAOC Ltd 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”.
While officials of the Nigerian National Petroleum Corporation (NNPCL) Limited had initially kicked against the sale, stating that Eni lacked authorisation to do so, they eventually backed down upon learning that the president himself had a stake in it, sources said.
Oando PLC will acquire almost 100% of NAOC’s shares. This deal will significantly increase Oando’s holdings in key oil mining leases (OMLs) and enhance its stake in several other assets. Specifically, Oando’s participating interest in OMLs 60, 61, 62, and 63 will double from 20% to 40%, and it will gain substantial interests in power plants and onshore exploration leases.
