African exploration and production company Oando Energy Resources (OER) has announced the Nigerian government's approval of a US$1.65bn acquisition of ConocoPhillips' oil and gas assets
A minister's consent is the mandatory approval for all oil and gas acquisitions in Nigeria, according to the Petroleum Act of 1969. With this approval granted by Diezani Alison-Madueke, the Nigerian minister of petroleum resources, OER and ConocoPhillips are positioned to complete the transaction, stated OER in a release.
ConocoPhillips' oilfields produced about 43,000 bpd last year and have proven reserves of 213mn barrels of oil equivalent.
Wale Tinubu, chairman of OER, said, “We are delighted to receive the minister’s approval to complete the acquisition. It has been a long journey, and 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. The coast is clear for us to immediately complete the acquisition.”
After the completion of this acquisition, the company said it will be positioned as the largest oil producer in Nigeria. It is expected to produce 50,000 boepd from six fields, and significantly enhance its upstream strategy and operations.
The company will also acquire a 20 per cent working interest in the Nigerian Agip Oil Company joint venture (JV), Brass River Oil terminal and 480MW Kwale-Okpai combined cycle gas-fired power plant, stated reports.
Oando’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) will almost double from US$276mn to US$613mn, stated the company.