ENI, an Italian firm, has agreed to divest its onshore Nigerian assets to Oando Plc, an indigenous energy solutions provider.

Oando disclosed this in a statement signed by the Company Secretary, Ayotola Jagun, on Monday, September 4.

The agreement is to acquire 100 per cent of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd), the company said, adding that the completion of the transaction would be subject to ministerial consent and other required regulatory approvals.

With the acquisition, Oando will nearly double its reserves to 996 million barrels of oil equivalent.

“The transaction increases Oando’s current participating interests in OMLs [Oil Mining Lease] 60, 61, 62, and 63 from 20 per cent to 40 per cent,” the company stated.

While Oando did not disclose the acquisition cost, an investment bank, Jefferies, pegged the deal at more than $500 million, according to a Reuters report.

After the sale, Eni will retain the unit’s five per cent stake in the Shell Production Development Company (SPDC) joint venture operated by Shell. At the same time, the Italian group will keep its offshore activities in Nigeria.

The purchase will enable Oando to “significantly increase production” and “bring to bear the important role indigenous actors will play in the future of the Nigerian upstream sector,” it said.

NAOC Ltd, which focuses on oil and gas exploration and production, has interests in four onshore blocks, two onshore exploration leases and two power plants.

“The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimise resource allocation, and significantly increase production. Furthermore, it aligns with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.

“Having achieved this significant milestone, we look forward to closing the transaction and harnessing the full potential of the enhanced platform to accrue value for our local communities, stakeholders and shareholders,”  the group chief executive, Oando, Wale Tinubu, said.