THE Nigerian government has approved the 100 per cent divestment of Italian firm Eni onshore Nigerian assets to Oando Plc, an Indigenous energy solutions provider.
Oando disclosed this to the investing public in a statement signed by its chief compliance officer and company secretary, Ayotola Jagun, on Thursday, July 25.
It said Eni had received formal consent from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the sale of 100 per cent of the shares of Nigerian Agip Oil Company (NAOC) to Oando.
It noted that the acquisition followed Eni’s receipt of consent, adding that both parties could proceed with the completion of the transaction.
“We are delighted that Eni has received the government’s approval to proceed with the completion of this strategic transaction.
“We extend our gratitude to the Honourable Minister of Petroleum Resources and the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for their concerted efforts in ensuring the execution of the grant of consent under the novel and robust divestment framework established by the recently enacted Petroleum Industry Act,” the group chief executive of Oando, Wale Tinubu, said.
Eni had in September 2023 hinted of its plans to divest its Nigerian onshore assets to Oando following the recent operating environment faced by many companies.
The ICIR reported that the completion of the transaction was to be subject to ministerial consent and other required regulatory approvals.
The transaction, in which the acquisition cost was not disclosed, will increase Oando’s current participating interests in OMLs [Oil Mining Lease] 60, 61, 62, and 63 from 20 per cent to 40 per cent.
However, a report by Reuters, quoting an investment bank, pegged the deal at more than $500 million.
A formal chairman of the Major Oil Marketers Association of Nigeria (MOMAN), Adetunji Oyebanji, had told The ICIR that international oil companies’ exit and divestment was hurting Nigeria’s oil production.
Not less than 15 multinational companies have either divested or partially closed operations in Nigeria in the last three years.
In a report, the ICIR chronicled some of the companies that were left under harsh economic realities in the last year of President Bola Tinubu’s administration.