Oando PLC (“Oando” or the “Firm”) (www.OandoPLC.com), Nigeria’s main vitality options supplier listed on each the Nigerian Alternate Restricted and Johannesburg Inventory Alternate is happy to announce the profitable completion of the acquisition of 100% of the shareholding curiosity within the Nigerian Agip Oil Firm (NAOC) from the Italian vitality firm, Eni, for a complete consideration of US$783 million comprised of consideration for the asset and reimbursement (the “Transaction”).
Obtain doc: https://apo-opa.co/4cD97ik
This acquisition is a major milestone in Oando’s long-term technique to increase its upstream operations and strengthen its place within the Nigerian oil and fuel sector.
Transaction Highlights
The Transaction will increase Oando’s present collaborating pursuits in OMLs 60, 61, 62, and 63 from 20% to 40%.
It will increase Oando’s possession stake in all NEPL/NAOC/OOL Joint Enterprise property and infrastructure which embody forty found oil and fuel fields, of which twenty-four are at present producing, roughly forty recognized prospects and leads, twelve manufacturing stations, roughly 1,490 km of pipelines, three fuel processing crops, the Brass River Oil Terminal, the Kwale-Okpai phases 1&2 energy crops (with a complete nameplate capability of 960MW), and related infrastructure.
Primarily based on 2022 reserves estimates, Oando’s complete reserves stand at 505.6MMboe and the transaction will ship a 98% enhance of 493.6MMboe, bringing the full reserves to 1.0Bnboe.
The Transaction is straight away money generative and can contribute considerably to the cashflows of the Firm.
Commenting, Wale Tinubu CON, Group Chief Govt, Oando PLC, stated:
“As we speak’s announcement is the fruits of ten years of toil, resilience, and an unwavering perception within the realisation of our ambition because the 2014 entry into the Joint Enterprise through the acquisition of Conoco-Philips Nigerian Portfolio. It’s a win for Oando, and each indigenous vitality participant, as we take our future in our fingers, and play a pivotal position on this subsequent section of the nation’s upstream evolution. With our assumption of the position of operator, our quick focus is on optimizing the property’ immense potential, advancing manufacturing and contributing to our strategic goals. This we’ll do whereas prioritizing accountable practices and sustainable growth in making certain a balanced strategy to our host communities, and environmental stewardship as we complement the nation’s plan to spice up manufacturing output.
Trying to the longer term, we’ll proceed to pursue strategic diversification alternatives inside the broader vitality sector that present enhanced progress and worth creation for our stakeholders, significantly in clear vitality, agri-feedstock sector, in addition to vitality infrastructure and mining.”
Distributed by APO Group on behalf of Oando Vitality Assets.
Ahead Wanting Statements:
This information launch accommodates forward-looking statements and forward-looking info inside the that means of relevant securities legal guidelines. The usage of any of the phrases “count on”, “anticipate”, “proceed”, “estimate”, “goal”, “ongoing”, “could”, “will”, “undertaking”, “ought to”, “consider”, “plans”, “intends” and related expressions are supposed to establish forward-looking info or statements. Specifically, this information launch accommodates forward-looking statements referring to supposed acquisitions.
Though the Firm believes that the expectations and assumptions on which such forward-looking statements and data are affordable, undue reliance shouldn’t be positioned on the forward-looking statements and data as a result of the Firm can provide no assurance that such statements and data will show to be appropriate. Since forward-looking statements and data deal with future occasions and situations, by their very nature they contain inherent dangers and uncertainties.
Precise outcomes might differ materially from these at present anticipated as a consequence of numerous elements and dangers. These embody however aren’t restricted to: dangers associated to worldwide operations, the precise outcomes of present exploration and drilling actions, modifications in undertaking parameters as plans proceed to be refined and the longer term value of crude oil. Accordingly, readers mustn’t place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing listing of things just isn’t exhaustive.
The forward-looking statements and data contained on this information launch are made as of the date hereof and the Firm undertakes no obligation to replace publicly or revise any forward-looking statements or info, whether or not on account of new info, future occasions or in any other case, until so required by relevant securities legal guidelines.
Cautionary Statements
Manufacturing info is often reported in items of barrel of oil equal (“boe” or “BOE”) or in items of pure fuel equal (“Mcfe”). Nonetheless, BOEs or Mcfes could also be deceptive, significantly if utilized in isolation. A boe conversion ratio of 6 Mcf:1 barrel, or an Mcfe conversion ratio of 1 barrel:6 Mcf, is predicated on an vitality equivalency conversion technique primarily relevant on the burner tip and doesn’t signify a price equivalency on the wellhead.
There is no such thing as a certainty that it is going to be commercially viable to supply any portion of the contingent assets.
There is no such thing as a certainty that any portion of the possible assets can be found. If found, there isn’t any certainty that it is going to be commercially viable to supply any portion of the assets.
Outlined Phrases
“Reserves” are these portions of petroleum anticipated to be commercially recoverable by utility of growth initiatives to identified accumulations from a given date ahead underneath outlined situations. Reserves should additional fulfill 4 standards: they have to be found, recoverable, industrial, and remaining (as of the analysis date) based mostly on the event undertaking(s) utilized. Reserves are additional categorized in accordance with the extent of certainty related to the estimates and could also be subclassified based mostly on undertaking maturity and/or characterised by growth and manufacturing standing.