We are not opposed to sale of Nigeria Agip Oil company — NNPCL

The Nigerian National Petroleum Company Limited (NNPCL) has clarified that it is not opposed to the sale of Nigerian Agip Oil Company Limited (NAOC) to Oando.

The NNPCL in a statement issued by Garba Deen Muhammad, Chief Corporate Communications Officer of the NNPC Ltd said, “It has come to our notice that a routine communication in the form of a letter written by NNPC E&P Limited (NEPL) to its JV Partner, Nigerian Agip Oil Company Limited (NAOC) is being interpreted to suggest that NNPC Ltd. is opposed to the sale of NAOC shares to Oando PLC. This is not correct.

“NNPC Ltd. wishes to state that the letter was sent by NEPL, an NNPC Ltd. subsidiary. However, nowhere was opposition or objection to the transaction mentioned in the letter. NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error. Adherence to those clauses will protect the transaction, now and in the future.”

Recall that Oando PLC in a statement on Monday announced the acquisition of 100 per cent of the shares of NAOC Ltd.

With the acquisition of Agip, Oando will assume ownership of forty discovered oil and gas fields, 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.

The completion of the transaction with ENI is however subject to Ministerial Consent and other required regulatory approvals.