Oando Plc on Wednesday completed the acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips for 1.5 billion dollars

The News Agency of Nigeria (NAN) reports that Oando announced the acquisition in Lagos in a statement by Alex Irune, its Head of Media and Communications.

oando

He said the cost outlay of 1.5 billion dollars was arrived at after customary adjustments plus a deferred consideration of 33 million dollars (N5.34 billion).

According to him, the transaction involved the acquisition of ConocoPhillips’ Nigerian oil and gas businesses consisting of Phillips Oil Company Nigeria Ltd.

ConocoPhilips Oil Company Ltd holds 20 per cent 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 Joint Venture (NAOC JV) Ltd.

It said that the other owners are the Nigerian National Petroleum Corporation (NNPC) with a 60 per cent interest and NAOC 20 per cent and operator.

“Conoco Exploration and Production Nigeria Ltd (CEPNL) holds 95 per cent operating interest in OML 131 located 70 km offshore in water depths of 500m to 1,200m.

“Phillips Deepwater Exploration Nigeria Ltd (PDENL) which holds a 20 per cent non-operating interest in Oil Prospecting Licence (OPL) 214 located 110 km offshore in water depths of 800m to 1,800m,” it said.

The statement said that other owners are ExxonMobil with 20 per cent and operator, Chevron 20 per cent, Svenska 20 per cent, Nigerian Petroleum Development Company 15 per cent and Sasol 5 per cent.

It said that the Minister of Petroleum Resources, Diezani Allison-Madueke, had in June approved the conversion of OPL 214 to OML 145 for an initial period of 20 years.

The transaction, it added, made Oando Energy Resources (OER) to own indirectly all of the issued share capital of POCNL, CEPNL and PDENL.

“The effective date of the transaction is January 1, 2012,” it said.

The statement also said the transaction compelled OER to retain The Petroleum and Renewable Energy Company Ltd as Independent Reserve.

It noted that Wale Tinubu, the Chairman of OER said that “we believe in the significant potential that the Nigerian oil and gas industry holds and are privileged to play a pivotal role in its consolidation, growth and development.

“We will continue to seek strategic opportunities that provide a platform for enhanced growth and value creation for our stakeholders.”

Source: http://musbizublog.com/?p=17994

Wale Tinubu!!!!!!

Making moves behind the scenes since 1852

Hmmm, Trillions things we will get there boy

Cool business.

One day na one day, I go join this clique

$1.5Billion is not N2.3 trillion. It is N230 Billion.
The mistake you made is valued at N2.07trillion equivalent to $13.52 Billion. Thats a ridiculous mistake that should ban a writer from holding a pen for life.

Why the hell is this on the frontpage?

this guy getting richer every nanosecond

See money wahala dey for poor man ooooooo!!!

.

Nice one. I hope they won't lay off some of the current staff of ConocoPhillips. I also hope this will create like 500 employment spaces for graduate trainees.

These foreign company divestitures are not necessarily good indications.
The energy industry is still very active and continual sell offs in any region usually indicates unfavorable business environment or uninsurable risks.
Let's hope the local content initiative and indigenous ownership can be steered rightly for local growth.

Wow! that's a lotsa cash.

Its all GOOD.

$1.5 billion dollars exchange for 2.43 trillion Naira ? Does it mean the writer doesn't know the current exchange rate ? It is a shame that a field as potentially dynamic and vital as journalism should be overrun with dullards, bums and hacks, hag-ridden with myopia,apathy and complacence, generally stuck in a big stagnant mediocrity.

Lord please open ma eyes to see the path u lay for me and help me get to the top like him and also bless his hustling too... Amen

Chiaaa money

sey bi na this country! Eh, me self go make am now!
Not until I travel to Malaysia... I'll make it here in Nigeria...




amen!

See money ooo!!!

.

Nice Move !!!

Talkcentral: I"M I mad or what, how can $1.5B turns to be 2.5 trillion I think it should be around #270B or something close. Please help a brother









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I guess they meant $15 billion.

.

Money hmm

U r testing her to knw if she's materialistic, she's testing u 2 knw if u're stingy, d devil is testing u both 2 c who fails..#word

money speaking.

Seriously!? That is a whole lot of money even in Naira. These people have been doing business for a very long time, they know the area of the economy they are gonna struck gold! Paying 2.3trillion to buy off a company? I guess people should start buying shares of that company if is available.

Ahdeytelyeu.... I just dey wonder. Dem want may person die just to get $1billion

Mods, correct this nonsense abeg. $1.5b should be roughly N240b, NOT 2.3trillion. No be so our dear Naira don useless reach.

N2.3 trillion should be approximately $15b. . . .Oando's entire operations and asset-base (including Bola Thifinubu's stake) is not worth anywhere near that sum.

Nihilist: Why the hell is this on the frontpage?

Because they are a wholly owned Nigerian/African company that are attempting to take full control of the oil & energy industry so we don't have to rely on racist foreigners that just want to come here and take our oil and resources back to their lands, while we are left with nothing but corrupt politicians spending our money on houses in Switzerland.