- Makes total payment of USD197 million
- Makes history with first indigenous, deepwater producing participation
Oando PLC, Nigeria’s leading integrated energy solutions provider, has announced the payment of USD$197 million to Agip for a 15% stake in two oil blocks – OML-125 and OML-134, making Oando the first indigenous participant company in a producing deep offshore oil block.
OML-125 currently produces approximately 20,000 barrels per day (bpd) of oil from the Abo field combined with near term production growth and high potential exploration acreage to complement Oando’s existing upstream portfolio. Abo is also expected to produce close to 40,000 bpd later this year as a result of a recent drilling campaign. OML-134 although still in exploration phase, has already recorded the Oberan discovery, where an appraisal well is currently being drilled.
This is coming on the heels of Oando’s acquisition of 30% stake in Akepo oilfield, which is a further attestation to its resolve to acquire active near term production assets in its rapidly growing oil and gas portfolio.
The payment which takes into consideration all interest adjustments were funded 100% from Oando’s resources and is expected to be partially re-financed in the near term by a 45% debt injection from a consortium of international financiers made up of Standard Chartered Bank, Standard Bank and BNP Paribas.
Wale Tinubu, Group Chief Executive, Oando PLC said,”This is a significant milestone for Oando as we officially join the league of companies with interests in deep offshore producing assets. This acquisition will contribute to our strategic target of 100,000bpd by 2012, as we continue to explore opportunities to build a robust portfolio of oil and gas properties”
Also commenting, Babatunde Ogunnaike, Chief Executive Officer, OEPL said, “We are excited about the prospects of partnering with Agip. We are now positioned to receive cash flow from Abo production, which we strategically hedged against the vagaries of international crude oil prices.”
Wale Tinubu further opined that “the transaction is yet another testament to the coming of age of Indigenous Corporates in the challenging arena of the Upstream Oil Industry”
Financial Advice for the transaction was provided by Standard Chartered Bank.
