…The African Energy Chamber calls upon the Nigerian Government to expedite the approval process for the Oando-Eni deal
WED, SEPT 06 2023-theGBJournal |The African Energy Chamber (AEC) has endorsed ”the ground-breaking” agreement between Oando PLC and Eni for the acquisition of 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
Announcing the endorsement today, the AEC said this ”significant transaction” holds immense potential for Nigeria’s energy sector and the wider African energy landscape.
The AEC recognizes that this deal represents a substantial step towards enhancing indigenous participation and control in the energy industry.
According to AEC, Oando’s increased stake in OMLs 60, 61, 62, and 63, along with the additional ownership in NEPL/NAOC/OOL joint venture assets and infrastructure, will not only grow the company but also contribute to the development of Nigeria’s hydrocarbon resources.
This transaction marks a significant step forward for Oando, increasing its ownership and influence across a wide spectrum of energy assets, including production, infrastructure, reserves and exploration. It positions Oando as a major contributor to Nigeria’s energy sector and underscores its commitment to furthering the country’s energy ambitions.
The AEC emphasized the importance of local content and investment in Africa’s energy sector and calls upon the Nigerian government to swiftly grant Ministerial Consent and any other necessary regulatory approvals to facilitate the completion of this transaction.
”Speedy approval will enable the parties involved to expedite the realization of the deal’s benefits, furthering Nigeria’s energy ambitions and attracting additional investments,” it noted, adding that the landmark agreement demonstrates the continued commitment of industry players like Oando and Eni to the sustainable growth and development of Africa’s energy resources.
The AEC said it remains steadfast in its support of initiatives that drive economic prosperity, strengthen local capacity and promote responsible resource management across the continent.
“The Oando-Eni deal marks a significant milestone for Nigeria’s energy sector and underscores the potential for local participation and growth. By increasing Oando’s stake in vital oil and gas assets and infrastructure, this agreement not only strengthens indigenous control but also contributes to increased economic development within the country.
As we strive for energy sovereignty and sustainable growth, it is imperative that the Nigerian Government expedites the necessary approvals to realize the full benefits of this transformative transaction,” states NJ Ayuk, Executive Chairman of the AEC.
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