The Nigerian Upstream Petroleum Regulatory Commission, NUPRC has approved Eni’s proposal to divest its Nigerian wholly-owned subsidiary, Nigerian Agip Oil Company (NAOC), to Oando PLC, a development that marks a significant in Nigeria’s oil and gas sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the completion of the deal at Nigeria’s Oil and Gas Week in Abuja, maintaining that the signing ceremonies for the deal would come up any moment.
“For some of you who were at the panel session on Monday, the Chairman of IPPG (Independent Petroleum Producers Group) raised issues about the need for us to give update on the divestments programmes on-going. Now, I am here to give you real-time update on the major divestments in Nigeria,” Gbenga Komolefe, the CEO of NUPRC said on Tuesday.
He added, “ NAOC-Oando divestment has been concluded. Signing ceremony will come up any moment”.
Currently, NAOC holds stakes in four onshore blocks comprising Oil Mining Licenses 60, 61, 62, and 63; in two power plants, Okpai 1 and 2; and in two onshore exploration leases – Oil Prospecting License 282 and OPL 135.
The transaction, however, excludes NAOC’s interest in the Shell Production Development Company Joint Venture (SPDC JV) as it will be retained in Eni’s portfolio.
Eni said it continue its presence in Nigeria through Nigerian Agip Exploration and Agip Energy and Natural Resources and will focus on operated offshore activities.
When the deal is finally signed by both parties it will move Oando from its current 25,000 barrels per day to double its oil equivalent output to 50,000 barrels per day.
