Financial Energy Review
The Minister of State for Petroleum Resources (Oil) Sen. Heineken Lokpobiri, has commended Oando Plc for its strategic acquisition of Nigerian Agip Oil Company, NAOC, marking a significant milestone in Nigeria’s oil and gas industry.
The $783 million transaction sees Oando’s participating interests in OMLs, 60, 61, 62 and 63 increase from 20% to 40% and increment in ownership stake in NAOC’s JV assets including 40 discovered oil and gas fields of which 24 are currently producing, 40 identified prospects, 12 production stations, 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai Phase 1 & 2 power plants and associated infrastructure.
During a meeting with Oando’s management team, led by Managing Director Ainojie Alex Irune, Lokpobiri praised the company’s foresight in reshaping the industry’s narrative, where Nigerian companies were now competing with international oil companies, IOCs.
The Minister expressed optimism for a future where Nigerian companies like Oando can compete favorably globally with international oil companies beyond the country’s shores.
Highlighting the significance of indigenous companies breaking new frontiers in the industry, Lokpobiri said, “Our concerted efforts to ramp up oil production are yielding remarkable results, with positive developments coming from all angles.
“I am particularly delighted to witness indigenous companies breaking new frontiers in this pursuit. I commend Oando for their strategic foresight in reshaping the narrative within the oil and gas industry. With this acquisition—alongside earlier acquisitions—Oando has positioned Nigeria firmly within the league of IOCs.
“We are growing enormous local capacity with companies like Oando, Seplat and others. Our expectations is that you (Oando) will sustain this momentum and in the nearest future, you will be at par with the so-called IOCs.
“I never knew Oando had so much capacity that if given the desired support can grow our oil production in such a manner that will be a game changer in this country
“My job is to continue to create an enabling environment for all oil and gas companies to operate in this country, whether indigenous or IOC.”
Earlier, the Managing Director of Oando Plc, Mr Ainojie Alex Irune, said the m visit was imperative to highlight their achievements, while expressing optimism for brighter days in the industry and Nigeria at large.
Irune also disclosed that Oando remain committed to growing Nigerian content in the oil and gas sector, while lauding the Minister for his support and commitment to the industry.
He said, “Our visit is not only to intimate you that we have concluded the transaction, but to also highlight the landmarks that we have done in achieving this milestone.
“I see brighter days ahead, we know the difficulties faced by not just the industry but also in the country, and we are poised to move the industry and the country forward.
“In everything that we have done, we have sought to put the best of local content forward and to inspire Nigerians that Nigerians can do it.”
