Eni receives approval for sale of Nigerian Agip Oil Company to Oando
Italy’s Eni has received formal consent from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the sale of Nigerian Agip Oil Company (NAOC) to national energy solutions provider Oando, Eni announced on July 24.
With all other relevant local and regulatory authorisations already obtained, this approval allows Eni to proceed to complete the transaction. Eni did not disclose the value of the deal.
NAOC, Eni’s wholly owned subsidiary, is involved in onshore oil and gas exploration and production, as well as power generation in Nigeria. It is listed on both the Nigerian and Johannesburg Stock Exchanges. NAOC’s 5% participating interest in the Shell Production Development Company joint venture is excluded from this deal. The other parties in this joint venture are operator Shell (30%), TotalEnergies (10%), and NNPC (55%).
Eni stated it remains committed to the country through investments in deepwater projects and Nigeria LNG. Furthermore, the company is developing plans for economic diversification in Nigeria, including assessing the potential production of agri-feedstock for Enilive biorefineries and various nature- and technology-based projects, such as clean cooking initiatives to offset emissions.
Currently, Eni has a portfolio of assets in exploration and production, with an equity production of approximately 40,000 barrels of oil equivalent/day, net of NAOC’s contribution. Eni also holds a 10.4% interest in Nigeria LNG.
This development follows Eni's recent divestment of its 10% share in engineering company Saipem for €393mn ($426mn). Saipem is involved in various gas and LNG projects, including QatarEnergy LNG's North Field project. In March, the company announced the successful loading out of the first three topsides from its Karimun fabrication yard in Indonesia, destined for Qatar.
The company has also signed a binding agreement with US-based private company Hilcorp for the sale of its 100% stake in the Nikaitchuq and Oooguruk assets in Alaska.
Eni has also entered a temporary exclusivity agreement with investment firm KKR to advance the due diligence phase and complete the documentation for the partial stake sale in Enilive, which focuses on biorefining, biomethane production, and smart mobility solutions.
In April, Eni announced it would raise its planned 2024 share buyback by 45% after first-quarter net income exceeded expectations. However, the group's leverage ratio has increased, coming close to the top end of the range indicated for the 2024-27 period.