“The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production,” stated Oando Group Chief Executive, Wale Tinubu, adding, “Furthermore, it is in alignment with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.”
The deal is in line with Eni’s strategy to reduce oil activities in Nigeria in favor of natural gas, retaining its presence in the West African country through offshore exploration and production assets, Nigerian Agip Exploration and Agip Energy and Natural Resources. The supermajor will also retain its 5% participating interest in the Shell Production Development Company Joint Venture, which is operated by oil and gas company, Shell.
Subject to ministerial consent and regulatory approvals, the acquisition is expected to significantly increase the role of indigenous companies in the future of Nigeria’s upstream sector.
