Petroleum Africa
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Thursday, July 31, 2014
Oando Energy Resources Inc. (OER) has completed its acquisition of ConocoPhillips upstream business unit in Nigeria. The deal was completed for a cash consideration of $1.5 billion after customary adjustments plus a deferred consideration of $33 million. The acquisition has been in the works for some time, but for various reasons was delayed.
For its money OER gains Phillips Oil Company Nigeria Ltd. which holds a 20% non-operating interest in OMLs 60, 61, 62, and 63 onshore Nigeria as well as related infrastructure and facilities in the Nigerian Agip Oil Company Ltd. JV. Offshore, OER gained title to Conoco Exploration and Production Nigeria Ltd.’s 95% operating interest in OML 131. It also gained a 20% non-operating interest in OPL 214, which won approval for its conversion into OML 145 in June for an initial 20 years.
Through this transaction, OER will indirectly own all of the issued share capital of the three ConocoPhillips’ units. The effective date of the transaction is January 1, 2012.
In connection with this transaction, OER retained The Petroleum and Renewable Energy Company Ltd. as Independent Reserves Evaluator to report on the reserves and resources of the newly acquired assets.
“This transaction represents a transformational leap forward for our company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high quality growth in reserves and production,” said Pade Durotoye, CEO, OER. “Our management team is familiar with these assets and possess the managerial experience and technical expertise necessary to unlock their value for our shareholders.”
Also commenting, Wale Tinubu, Chairman, OER said, “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.”
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