In a significant development, Italian oil and gas giant Eni has announced that it has received formal regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the sale of its wholly-owned subsidiary, Nigerian Agip Oil Company Limited (NAOC), to Oando Plc. This approval marks a major milestone in the transaction, which will be the first deal to be approved under the Petroleum Industry Act (PIA) and under the new upstream regulatory body, the NUPRC.
Eni confirmed that it has obtained all necessary local and regulatory authorities’ authorizations, paving the way for the completion of the transaction. The sale of NAOC to Oando Plc will transfer ownership of Eni’s subsidiary, which focuses on onshore oil and gas exploration and production, as well as power generation in Nigeria. NAOC’s assets include a range of onshore oil and gas fields, as well as power generation facilities.
However, NAOC’s participating interest in the SPDC JV (Shell Production Development Company Joint Venture) will not be included in the transaction and will be retained in Eni’s portfolio. The SPDC JV is a significant joint venture between Shell, TotalEnergies, NAOC, and the Nigerian National Petroleum Corporation (NNPC), with Shell holding a 30% interest, TotalEnergies holding a 10% interest, NAOC holding a 5% interest, and NNPC holding a 55% interest.
Eni remains committed to Nigeria through investments in deepwater projects and Nigeria LNG. The company has a substantial portfolio of assets in exploration and production, with an equity production of approximately 40,000 barrels of oil equivalent per day net of NAOC contribution. Eni also holds a 10.4% interest in Nigeria LNG.
In addition to the sale of NAOC, Eni is also developing plans for economic diversification in Nigeria. These plans include assessing the potential production of agri-feedstock for EniLive bio-refineries and various nature- and technology-based projects, such as clean cooking initiatives to offset emissions.
Eni has been operating in Nigeria since 1962, with a long history of investment in the country’s oil and gas sector. The company’s commitment to Nigeria is demonstrated by its ongoing investments in deepwater projects and Nigeria LNG, as well as its plans for economic diversification.
Other companies, including Shell Petroleum Development Company (SPDC), ExxonMobil, Total Energies, and Equinor, are also in the process of getting approval for similar transactions. These transactions are part of a broader trend of divestment by international oil companies in Nigeria, as they seek to focus on core assets and reduce their exposure to onshore oil and gas production.
