Oando acquires Nigerian Agip Oil Company for $738m

The transaction includes a reimbursement and consideration for the asset.

Oando expects the acquisition to solidify its position in Nigeria’s oil and gas sector, enhancing its operational footprint and expanding its upstream capabilities.

Wale Tinubu, Group Chief Executive of Oando PLC, highlighted the significance of this acquisition as the culmination of a decade-long effort that began with Oando’s acquisition of ConocoPhillips’ Nigerian assets in 2014.

Tinubu said: “This is a win for Oando and every indigenous energy player as we take our destiny in our hands and play a pivotal role in the next phase of Nigeria’s upstream evolution.”

He further emphasized Oando’s commitment to optimizing the acquired assets’ potential while maintaining a focus on responsible practices, sustainable development, and contributing to Nigeria’s goal of boosting oil production.

Oando has cautioned that, while it believes the acquisition will yield significant benefits, the transaction involves inherent risks and uncertainties.

These include potential changes in project parameters, the future price of crude oil, and risks associated with international operations.

The company advised investors to consider these factors when evaluating its future prospects.

Despite the uncertainties, Oando remains optimistic about the acquisition’s potential to drive growth and value creation, particularly as it explores diversification opportunities in clean energy, agri-feedstock, and energy infrastructure.