Oando Energy Resources (OER) has entered into an agreement with ConocoPhillips to acquire its Nigerian businesses, for about $1.79bn.
As per the agreement, OER will acquire ConocoPhillips’ Phillips Oil Company Nigeria (POCNL), which holds 20% non-operating interest in Oil Mining Leases (OMLs) 60, 61, 62, and 63.
In addition, the company will also buy out all the related infrastructure and facilities in the Nigerian Agip Oil Company Joint Venture (NAOC JV).
The 20% interest in NAOC JV will include 40 discovered oil and gas fields, 40 identified prospects, 12 production stations, about 950km crude oil, and natural gas liquids and gas pipelines.
It also covers two gas processing facilities, Brass River Oil Terminal, Kwale-Okpai 480MW combined cycle gas-fired power plant and associated infrastructure.
Under the agreement, ConocoPhillips will also sell its Phillips Brass (PBL) to OER.
PBL owns 17% interest in Brass LNG company, which is developing a greenfield project called the Brass LNG project, to set up a liquefied natural gas facility in Bayelsa State, Nigeria.
The offshore business of ConocoPhillips includes Conoco Exploration and Production Nigeria (CEPN) with 95% interest in OML 131, and the company’s Phillips Deepwater Exploration Nigeria (PDENL) with 20% non-operating interest in oil prospecting licenses (OPL) 214.
As per the agreement, Oando will purchase all the issued share capital of POCNL, PBL, CEPN, and PDENL.
Oando Energy Resources CEO PadeDurotoye said, “This potential transaction represents a transformational step forward for our Company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high quality growth in reserves and production.”
In connection with the proposed acquisition, OER has retained the Petroleum and Renewable Energy Company (Petrenel), the company’s independent reserves evaluator, so as to prepare a report on the reserves and resources of the OMLs 60, 61, 62, 63, 131 and OPL 214