Ministry of Petroleum Resources has finally approved the proposed acquisition of ConocoPhillips’ Nigerian business by Oando.
The long-awaited transactionhad staggered from one long-stop date to another, even after the financial close of the $1.65 billion acquisition.
The chief executive of OANDO, Mr. Wale Tinubu, when reacting to the development said “It has been a long journey, wherein we kept faith with our strategy and executed every milestone diligently.
“This acquisition satisfies our criteria for assets in production, as well as excellent appraisal and exploration prospects. We will work hand in hand with the management team of ConocoPhillips to immediately complete the acquisition.”
The acquisition which is expected to be a “transformational milestone” is certain to make Oando the largest indigenous E&P company in Nigeria with 50,000 boepd in production from six producing fields, 236 million in 2P reserves and over 500 million in contingent resources.
The onshore business to be acquired by Oando under the deal includes Phillips Oil Company Nigeria Limited (POCNL), which holds a 20% non-operating interest in Oil Mining Leases (OMLs) 60, 61, 62, and 63 as well as related infrastructure and facilities in the Nigerian Agip Oil Company Limited (NAOC) Joint Venture (NAOC JV). Nigerian National Petroleum Corporation (NNPC) holds a 60% interest in the joint venture, while NAOC, which operates the assets, holds 20%.
By the terms of the agreement, Oando will also acquire ConocoPhillips offshore business, which includes Conoco Exploration and Production Nigeria Limited(CEPNL).
The company holds a 95% operating interest in OML 131, with other partners as Medal Oil, 5%; and Phillips Deepwater Exploration Nigeria Limited (PDENL), which holds a 20% non-operating interest in OPL 214.