Eni divests of onshore Nigerian energy assets

Eni divests onshore Nigerian energy assets

ABUJA, September 5, 2023 – Eni has signed an agreement with local energy player Oando for the sale of its Nigerian subsidiary focused on onshore upstream and power generation activities, the Italian energy giant announced on Monday.

The sale of Nigerian Agip Oil Company will see Oando take an additional 20% interest in onshore blocks OML 60, OML 61, OML 62 and OML 63. Currently the blocks are being operated by Nigerian Agip Oil Company on behalf of a joint venture with state-owned NNPC.

Additionally, Oando will acquire two power plants with a production capacity of 960 MW, the Okpai 1 and Okpai 2 assets.

The local player will also take 90% and 48% operating stakes in two onshore exploration licences, OPL 282 and OPL 135 respectively.

The assets contain 40 oil and gas discoveries, of which 24 are currently under production; 1490-kilometres of pipelines; three gas processing plants; the Brass River oil terminal; and other associated infrastructure.

The acquisition will see Oando’s oil and gas reserves rise by 98%. In 2021, the company had just over 503 million barrels in reported reserves.

The transaction excludes Nigerian Agip Oil Company’s 5% interest in Shell Production Development Joint Venture, which will remain in Eni’s portfolio.

Eni will also continue its activities in Nigeria through Nigerian Agip Exploration and Agip Energy and Natural Resources with a focus on offshore activities.

The transaction is subject to regulatory approvals.

Cost of the acquisition was not disclosed.

According to Reuters, ExxonMobil and Shell have recently made moves to divest their onshore Nigerian assets due to oil theft, spills and streamlined exploration budgets.

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