Oando, Afreximbank Sign $800M Deal for Major Oil Sector Move

by Adenike Adeodun

Oando Plc, Nigeria’s leading indigenous energy firm, has recently partnered with Afreximbank to facilitate a major acquisition. They signed an $800 million loan agreement to fully acquire the Nigerian Agip Oil Company (NAOC). This significant deal was sealed at the Intra-African Trade Fair in Cairo, Egypt.

Earlier on September 4, 2023, Oando announced its plan to acquire 100% of NAOC shares from Eni, an Italian multinational energy company. This strategic acquisition involves a 20% participating interest across OMLs 60, 61, 62, and 63, doubling Oando’s current stakes and expanding its joint venture assets.

Upon completion, pending necessary approvals, this move will significantly increase Oando’s ownership in numerous oil and gas fields, a vast network of pipelines, several production stations, and major power plants, marking a new era in the Nigerian energy sector.

At IATF 2023, Afreximbank has been active, signing multiple finance deals to bolster Africa’s growth. This particular collaboration with Oando is a testament to fostering cross-border growth and strengthening partnerships in Africa.

Wale Tinubu, Group Chief Executive of Oando, highlighted the acquisition’s role in reshaping the Nigerian upstream sector. He emphasized the acquisition’s alignment with Oando’s strategy to enhance efficiency and increase production.

According to a report by This Day Live, Tinubu expressed confidence in closing the transaction soon, emphasizing its potential to deliver value to local communities, stakeholders, and shareholders alike. This development is a significant step for Oando in enhancing its position in the Nigerian energy market.

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