Oando Acquires ConocoPhillips for N2.3 Trillion
LAGOS (NAN) ― Oando Plc
on Wednesday completed the acquisition of the Nigerian Upstream Oil and
Gas Business of ConocoPhillips for 1.5 billion dollars (about N2.3
trillion).
The News Agency of Nigeria (NAN) reports that Oando announced the acquisition in Lagos in a statement by Alex Irune, its Head of Media and Communications.
He
said the cost outlay of 1.5 billion dollars (N2.43 trillion) was
arrived at after customary adjustments plus a deferred consideration of
33 million dollars (N5.34 billion).
According
to him, the transaction involved the acquisition of ConocoPhillips’
Nigerian oil and gas businesses consisting of Phillips Oil Company
Nigeria Ltd.
ConocoPhilips
Oil Company Ltd holds 20 per cent 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 Joint Venture (NAOC JV) Ltd.
It
said that the other owners are the Nigerian National Petroleum
Corporation (NNPC) with a 60 per
cent interest and NAOC 20 per cent and
operator.
“Conoco
Exploration and Production Nigeria Ltd (CEPNL) holds 95 per cent
operating interest in OML 131 located 70 km offshore in water depths of
500m to 1,200m.
“Phillips
Deepwater Exploration Nigeria Ltd (PDENL) which holds a 20 per
cent non-operating interest in Oil Prospecting Licence (OPL) 214
located 110 km offshore in water depths of 800m to 1,800m,” it said.
The
statement said that other owners are ExxonMobil with 20 per cent and
operator, Chevron 20 per cent, Svenska 20 per cent, Nigerian Petroleum
Development Company 15 per cent and Sasol 5 per cent.
It said that the Minister of Petroleum Resources, Diezani Allison-Madueke, had in June approved the conversion of OPL 214 to OML 145 for an initial period of 20 years.
The
transaction, it added, made Oando Energy Resources (OER) to own
indirectly all of the issued share capital of POCNL, CEPNL and PDENL.
“The effective date of the transaction is January 1, 2012,” it said.
The
statement also said the transaction compelled OER to retain The
Petroleum and Renewable Energy Company Ltd as Independent Reserve.
It noted that Wale Tinubu,
the Chairman of OER said that “we believe in the significant potential
that the Nigerian oil and gas industry holds and are privileged to play a
pivotal role in its consolidation, growth and development.
“We
will continue to seek strategic opportunities that provide a platform
for enhanced growth and value creation for our stakeholders.”
