Nigerian oil tycoon Wale Tinubu’s Oando to acquire Italian-owned NAOC

Oando Plc, a Nigerian integrated energy solutions provider led by oil magnate Adewale Tinubu, has announced a historic agreement with Eni, a global integrated energy company, for the acquisition of 100 percent of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).

This landmark acquisition, which is poised to redefine Nigeria’s oil and gas landscape, is set to substantially elevate Oando’s stake in OMLs 60, 61, 62, and 63 from 20 percent to an impressive 40 percent. The deal, however, remains contingent upon securing Ministerial Consent and regulatory approvals.

Tinubu, group CEO of Oando Plc, expressed his optimism about the acquisition. He stated: “The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production. Furthermore, it aligns with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.”

Tinubu, a towering figure in the Nigerian energy industry, emphasized that this announcement underscores the indispensable role played by indigenous companies in Nigeria’s upstream sector. Oando’s strategic move aligns seamlessly with the nation’s overarching objective of promoting local participation in the energy industry, thereby substantially contributing to Nigeria’s economic growth.

Under the terms of this transformative transaction, Oando will gain full ownership of all NEPL/NAOC/OOL Joint Venture assets, including numerous oil and gas fields, production stations, pipelines, gas processing plants, and power plants.

This strategic maneuver is poised to dramatically elevate Oando’s total reserves, increasing from 503.3 million barrels of oil equivalent (MMboe) based on 2021 estimates to an astonishing 98 percent surge. Furthermore, the acquisition will significantly expand Oando’s exploration portfolio, securing a 90 percent interest in OPL 282 and a 48-percent interest in OPL 135.

The recent revelation follows closely on the heels of Ocean and Oil Development Partners Limited (OODP), an investment firm predominantly owned by Tinubu, disclosing its plans to take Oando Plc private. This initiative aims to steer the oil-producing and marketing company onto a trajectory of growth following a prolonged series of legal battles.

In pursuit of complete ownership of the integrated energy company, OODP, the primary shareholder, has initiated a strategic plan to acquire all outstanding shares held by minority stakeholders. Qualified shareholders will receive N7.07 ($0.0153) in cash or an equivalent sum in South African Rand for each ordinary share held at the Effective Date of the Scheme.

Tinubu serves as a non-executive director of OODP and holds a commanding 66.7-percent stake in the company, while his deputy, Omamofe Boyo, also a non-executive director at OODP, owns the remaining 33.3 percent.

By offering a scheme consideration that is 58 percent higher than the last traded share price of Oando on March 28, 2023 — the day before the submission of the scheme application to the Securities and Exchange Commission — OODP is unequivocally aiming for complete ownership of the integrated energy company.

This will ultimately lead to the delisting of Oando’s shares from the Nigerian Exchange and the Johannesburg Stock Exchange, marking a pivotal moment in the company’s history.