Nigeria: Downstream Oando Takes Stake in Agip
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Tuesday, 05 August 2008 |
Oando has announced its first foray into upstream with the acquisition
of 15% of Italian oil giant Agip Exploration’s interest in production-sharing contracts off the Nigerian coast for $188,4m.
Oando, one of Nigeria’s biggest independent energy group, said the transaction was “a rare opportunity to acquire a balanced upstream asset portfolio in our home market in line with our stated principle to acquire proven and actively producing properties that demonstrate the potential for increased financial return”.
Oando said $18,8m of the $188,4m was paid on Thursday last week, the day on which the purchase agreement was sealed. The other $169,6m would be paid at the completion of the transaction. The group said the transaction would be financed through a combination of internal and external finance sources.
The deal is subject to receipt of consent by the Nigerian government and to “no adverse event having occurred in the business condition as defined in the agreement”. Oil facilities, including Agip’s, have in the past come under attack from militants.
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