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| Oando Plc |
By Ejiofor Alike
An indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, Oando Plc, has received ministerial consent for its acquisition of ConocoPhillips (COP) Nigerian assets, a deal worth $1.65 billion.
The ministerial consent is the mandatory final approval for all
oil and gas acquisitions in the country as stipulated under the Petroleum Act
of 1969.
Confirming the receipt of the approval, Oando said in a statement yesterday that with the due completion of the game-changing acquisition, the company would be positioned as the largest indigenous oil producer in Nigeria.
According to the statement, Oando would now produce circa 50,000
barrels of oil equivalent per day from six producing fields and would also
significantly impact its near immediate upstream strategy and operations, and
optimise its value across the energy chain.
In December 2012, Oando, through its Exploration and Production subsidiary Oando Energy Resources (OER), entered into an agreement with COP to acquire its Nigerian businesses.
Though Oando successfully raised the funds required to complete its acquisition of the assets, the closure of the ConocoPhillips acquisition was subject to meeting certain conditions, including government and regulatory approval, and the consent of the Minister of Petroleum Resources.
Commenting
on the successful completion of the deal, the Group Chief Executive Officer,
Oando Plc, Mr. Wale Tinubu, said he was delighted to receive the approval of
the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, for the
completion of the acquisition.
“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,” he said.
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