Italian oil major Eni has secured approval from the Nigerian Upstream Petroleum Regulatory Commission to proceed with the sale of its subsidiary, Nigerian Agip Oil Company, to Oando PLC. This confirmation was disclosed in a statement published on Eni’s official website on Wednesday.
NAOC, which primarily engages in onshore oil and gas exploration, production, and power generation in Nigeria, will be transferred to Oando PLC, a prominent national energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange.
Eni’s decision underscores a growing trend among international oil companies to divest from onshore assets in Nigeria, redirecting their focus to offshore and deepwater segments within the oil and gas industry.
However, Eni clarified that its 5% stake in the Shell Production Development Company Joint Venture remains excluded from the transaction and will continue to be part of Eni’s portfolio.
In a statement, Eni emphasized its commitment to Nigeria, highlighting ongoing investments in deepwater projects and the Nigeria LNG sector.
The sale of NAOC to Oando follows Eni’s agreement in September 2023 to divest its interests in the onshore sector, a move initially contested by the Nigerian National Petroleum Corporation Limited. NNPC had raised concerns about regulatory approvals but subsequently acknowledged the clearance from NUPRC for the transaction to proceed.
This shift in ownership reflects broader changes in Nigeria’s oil industry, with major international players opting to exit onshore operations in recent years.
Shell, for instance, announced its sale of a 30% stake in SPDC to a consortium of local firms earlier in 2024, indicative of the increasing role of domestic entities in the country’s energy landscape.
Eni’s strategic realignment underscores its continued involvement in Nigeria’s offshore oil and gas activities amid evolving market dynamics and regulatory developments.
