A Review of the Nigerian Energy Industry

Oando completes acquisition of ConocoPhillips Nigerian assets for $1.5bn

Oando Oil's Managing Director Wale Tinubu attends an Oil and Gas conference in Nigeria's capital Abuja
Mr. Wale Tinubu, Oando CEO

Chuks Isiwu 30 July 2014, Sweetcrude, Lagos – Oando Energy Resources Incorporated, OER, a company focused on oil and gas exploration and production in Nigeria, announced, Wednesday, the completion of its acquisition of the Nigerian upstream oil and gas business of ConocoPhillips for a total cash consideration of US$1.5 billion after customary adjustments plus a deferred consideration of US$33 million.

The transaction entails the acquisition of ConocoPhillips’ Nigerian oil and gas businesses consisting of the onshore business and Phillips Oil Company Nigeria Limited, which holds a 20% non-operating interest in Oil Mining Leases, OMLs, 60, 61, 62, and 63 as well as related infrastructure and facilities in the Nigerian Agip Oil Company Limited, NAOC, joint venture.

Offshore businesses acquired by Oando following the acquisition are Conoco Exploration and Production Nigeria Limited, CEPNL, which holds a 95% operating interest in OML 131 located 70 km offshore in water depths of 500m to 1,200m.; and Phillips Deepwater Exploration Nigeria Limited, PDENL, which holds a 20% non-operating interest in Oil Prospecting Licence, OPL, 214 located 110 kilometres offshore in water depths of 800 metres to 1,800 metres. The other coventurers are ExxonMobil (20% and operator), Chevron (20%), Svenska (20%), Nigerian Petroleum Development Company (15%) and Sasol (5%).

Last month, the Minister of Petroleum ResourcesMrs Diezani Alison-Madueke, approved the conversion of OPL 214 to OML 145 for an initial period of 20 years.

Oando said in a statement obtained by SweetcrudeReports that through this transaction, OER will indirectly own all of the issued share capital of POCNL, CEPNL and PDENL. The effective date of the transaction is January 1, 2012.


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