Oando Plc has been awarded the prestigious “Energy Deal of the Year 2024” at the Nigeria International Energy Summit (NIES) 2025, recognizing its transformative $783 million acquisition of the Nigerian Agip Oil Company (NAOC) from the Italian energy giant, Eni. This landmark acquisition has solidified Oando’s position as a key player in Africa’s energy sector and marks a significant milestone in the company’s strategic growth over the past decade.
A Decade of Strategic Growth and Acquisition
The acquisition of NAOC is the culmination of Oando’s decade-long strategy to increase its footprint in the oil and gas sector. Oando’s entry into the ConocoPhillips/NAOC/NNPC Joint Venture in 2014 through the acquisition of ConocoPhillips Nigeria’s business paved the way for its expansion. This acquisition doubled the company’s stake in the venture to 40%, allowing Oando to assume the role of operator for critical upstream assets.
The acquisition of NAOC not only enhanced Oando’s upstream portfolio but also provided it with significant infrastructure and resources. The assets acquired include forty discovered oil and gas fields, an extensive pipeline network, three gas processing plants, the Kwale-Okpai power plant with a total nameplate capacity of 960MW, and the Brass River Oil Terminal. These additions have boosted Oando’s total 2P reserves to an impressive 1.0 billion barrels of oil equivalent (boe), significantly enhancing the company’s market position.
Celebrating Strategic Vision and Leadership
The “Energy Deal of the Year 2024” award, presented by NIES, recognizes transformative deals that drive advancements in energy and economic growth. The award is a significant accolade for Oando, highlighting its exceptional leadership, strategic vision, and impact on the energy sector in Africa. The Nigeria International Energy Summit is a globally recognized platform that fosters discussions and high-level deals, and Oando’s recognition at this event underscores its pivotal role in shaping the continent’s energy future.
The NIES award specifically celebrates excellence in negotiation, strategic alignment, innovation, and collaboration—qualities that Oando demonstrated throughout the NAOC acquisition process. In response to receiving the award, Dr. Ainojie Irune, Managing Director of Oando Energy Resources, attributed the success to the company’s focus on ramping up its production sustainably. The company has emphasized optimizing its asset portfolio, improving security measures, and leveraging advanced technologies like data analytics and digitalization post-acquisition.
Strong Financial Performance and Future Growth
Oando’s acquisition of Nigerian Agip Oil Company has had a significant impact on its financial performance, particularly in FY 2024. The company reported a remarkable 45% surge in revenue, reaching N4.1 trillion, driven by the added assets and capabilities resulting from the acquisition. This growth further solidifies Oando’s position as a leading energy player in Nigeria and Africa.
In addition to the impressive revenue growth, Oando has also made strides in rewarding its shareholders. The company recently distributed 1.28 billion additional shares as stock dividends, marking the largest shareholder reward in its history. The shares were distributed in two tranches to encourage long-term value appreciation and to boost future dividend prospects for shareholders.
Optimizing for Long-Term Success
Post-acquisition, Oando is focused on optimizing its asset portfolio, enhancing operational efficiency, and building strong community partnerships. The company is committed to sustainable growth by improving security, utilizing advanced technologies, and fostering collaborative relationships with stakeholders. These initiatives are expected to drive further growth and create long-term value for shareholders, customers, and the communities in which Oando operates.
Conclusion: A Strategic Milestone for Oando
The $783 million acquisition of the Nigerian Agip Oil Company has positioned Oando for long-term success in the energy sector. With its expanded portfolio of upstream assets, enhanced production capacity, and strengthened market presence, Oando is poised to continue leading the way in Africa’s energy sector. The recognition at the Nigeria International Energy Summit further underscores Oando’s leadership and vision for transforming the energy landscape, ensuring sustainable growth and creating lasting value for its stakeholders.
