OANDO PLC - Oando Announces Agreement with ENI for the Acquisition of 100% of the Shares of Nigerian Agip Oil Company Limited

Oando Announces Agreement with ENI for the Acquisition of 100% of the Shares of Nigerian Agip Oil Company Limited

Oando PLC
(Incorporated in Nigeria and registered as an external
company in South Africa)
Registration number: RC 6474
(External company registration number 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
ISIN: NGOANDO00002
(“Oando” or the “Company”)



                                 Monday 4, September 2023

                                       Press Statement

OANDO PLC ANNOUNCES AGREEMENT WITH ENI FOR THE ACQUISITION OF 100%
        OF THE SHARES OF NIGERIAN AGIP OIL COMPANY LIMITED


Lagos, Nigeria - Oando PLC (“Oando” or the “Company”), Nigeria’s leading indigenous
energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg
Stock Exchange, is pleased to announce that it has reached an agreement with Eni (“ENI”)
(an integrated energy company actively supporting a just energy transition, with the objective
of achieving Net-Zero carbon emissions by 2050 and promoting efficient and sustainable
access to energy for all), for the acquisition of 100% of the shares of Nigerian Agip Oil
Company Limited (NAOC Ltd).

Completion of the transaction is subject to Ministerial Consent and other required regulatory
approvals.

Transaction Highlights

   •   The transaction increases Oando’s current participating interests in OMLs 60, 61, 62,
       and 63 from 20% to 40%.
   •   It increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets
       and infrastructure which include forty discovered oil and gas fields, of which twenty-
       four are currently producing, approximately forty identified prospects and leads, twelve
       production stations, approximately 1,490 km of pipelines, three gas processing plants,
       the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants (with a total
       nameplate capacity of 960MW), and associated infrastructure.
   •   Based on 2021 reserves estimates, Oando’s total reserves stand at 503.3MMboe and
       the transaction will deliver a 98% increase.
   •   The transaction also grows Oando’s exploration asset portfolio through the acquisition
       of a 90% interest in OPL 282 and 48% interest in OPL 135.
   •   NAOC Ltd participating interest in SPDC JV (Shell Production Development Company
       Joint Venture - operator Shell 30%, TotalEnergies 10%, NAOC 5%, NNPC 55%) is not
       included in the perimeter of the transaction and will be retained in Eni’s portfolio.

Commenting Wale Tinubu CON, Group Chief Executive, Oando PLC said:

“The synergies created by this acquisition will unlock unparalleled opportunities for us to re-
align expectations, enhance efficiency, optimize resource allocation, and significantly increase
production. Furthermore, it is in alignment with our strategy of acquiring, enhancing,
appraising, and efficiently developing reserves.

Today’s announcement is not just an important milestone for the future of Oando; it brings to
bear the important role indigenous actors will play in the future of the Nigerian upstream sector.

Having achieved this significant milestone, we look forward to closing the transaction and
harnessing the full potential of the enhanced platform to accrue value for our local
communities, stakeholders and shareholders."


Forward Looking Statements:
This news release contains forward-looking statements and forward-looking information within
the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”,
“continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”,
“plans”, “intends” and similar expressions are intended to identify forward-looking information
or statements. In particular, this news release contains forward-looking statements relating to
intended acquisitions.

Although the Company believes that the expectations and assumptions on which such
forward-looking statements and information are reasonable, undue reliance should not be
placed on the forward-looking statements and information because the Company can give no
assurance that such statements and information will prove to be correct. Since forward-looking
statements and information address future events and conditions, by their very nature they
involve inherent risks and uncertainties.

Actual results could differ materially from those currently anticipated due to a number of factors
and risks. These include but are not limited to: risks related to international operations, the
actual results of current exploration and drilling activities, changes in project parameters as
plans continue to be refined and the future price of crude oil. Accordingly, readers should not
place undue reliance on the forward-looking statements. Readers are cautioned that the
foregoing list of factors is not exhaustive.

The forward-looking statements and information contained in this news release are made as
of the date hereof and the Company undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new information, future
events or otherwise, unless so required by applicable securities laws.

Cautionary Statements
Production information is commonly reported in units of barrel of oil equivalent (“boe” or “BOE”)
or in units of natural gas equivalent (“Mcfe”). However, BOEs or Mcfes may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 barrel, or an Mcfe conversion
ratio of 1 barrel:6 Mcf, is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the wellhead.
There is no certainty that it will be commercially viable to produce any portion of the contingent
resources.

There is no certainty that any portion of the prospective resources will be discovered. If
discovered, there is no certainty that it will be commercially viable to produce any portion of
the resources.

Defined Terms
“Reserves” are those quantities of petroleum anticipated to be commercially recoverable by
application of development projects to known accumulations from a given date forward under
defined conditions. Reserves must further satisfy four criteria: they must be discovered,
recoverable, commercial, and remaining (as of the evaluation date) based on the development
project(s) applied. Reserves are further categorized in accordance with the level of certainty
associated with the estimates and may be subclassified based on project maturity and/or
characterized by development and production status.

Ends.


For further information, please contact:

 Ayotola Jagun                                    Alero Balogun
 Company Secretary                                General Manager, Business Support Group
 The Wings Office Complex,                        The Wings Office Complex,
 17a Ozumba Mbadiwe Avenue,                       17a Ozumba Mbadiwe Avenue,
 Victoria Island, Lagos, Nigeria.                 Victoria Island, Lagos, Nigeria.
 Tel: +234 (1) 270400, Ext 6159                   Tel: +234 (1) 270400, ext. 6761
 ajagun@oandoplc.com                              albalogun@oanodplc.com


For Oando PLC

Ayotola Jagun
Chief Compliance Officer & Company Secretary


JSE Sponsor to Oando
Questco Corporate Advisory Proprietary Limited

Date: 04-09-2023 10:27:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.