Business
Eni’s Onshore Assets Sale To Oando Attracts Controversy
There have been controversies over the sale of Eni’s subsidiary, Nigerian Agip Oil Company Limited (NAOC) oil assets to Oando Oil Limited (OOL).
The assets comprise Oil Mining Lease, OMLs 60, 61, 62, and 63.
According to The Tide’s source, the controversy is based on the fact that ExxonMobil was previously stopped from selling its entire share capital of Mobil Producing Nigeria Unlimited, (MPNU) to Seplat Energy Plc.
Meanwhile, industry leaders, who bared their minds on the issue in different interviews, said they expected similar trend as the government had agreed that such assets should be utilised to enable the Nigerian Petroleum Development Company (NPDC), a fully-owned subsidiary of NNPC Limited, build its capacity to becoming a major exploration and producing company.
They said they were shocked to note the smooth sailing of the Eni/Oando deal, thus provoking Seplat Energy and other parties.
Speaking on the issue, the National President of Oil and Gas Service Providers Association of Nigeria, Mazi Colman Obasi, said, “I cannot understand why the two cases are treated differently. I expect the government to be fair and transparent to all investors”.
In the same vein, Lead Promoter, EnergyHub Nigeria, Prof. Felix Amieyeofori, said, “This is a new government that is making efforts to attract private investors and needs to send the right signals to the global community.
“It should also be known that Oando had successfully acquired Eni’s assets before for development. There seems to be trust that informs the current transaction by Eni”.
Already, the NNPC Limited has clarified that it is not against the sale of shares by NAOC to Oando Oil Limited.
NNPC’s Chief Corporate Communications Officer, GarbaDeen Muhammad, in a statement obtained by the source, 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 is being interpreted to suggest that NNPC Ltd is opposed to the sale of NAOC shares to Oando PLC. This is not correct.
“NNPC Limited wishes to state that the letter was sent by NEPL, an NNPC Ltd. subsidiary. However, nowhere was opposition or objection to the transaction in the letter.
“NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement 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”.
In a letter to the Managing Director of NOAC and the Chief Operating Officer of Oando Oil Limited, NNPC Limited, had said, “Our attention has been drawn to various reports circulating on different media platforms concerning an alleged divestment of NAOC participating in the OML mentioned above to Oando Oil Limited.
“A duly signed press statement allegedly emanating from OOL dated 4th September 2023 affirms that NAOC has assigned its entire 20 per cent participating interest in the said OMLs to OOL.
“While we are yet to confirm the authenticity of the purported divestment, we would like you to note that the purported divestment, if true, would have the following far-reaching contractual/legal implications in relation to the Joint Operating Agreement (JOA) dated July 1991 governing the operations of NAOC/NEPL/OOL joint venture:
“It is imperative for you to know that failure for you to obtain NEPL’s prior written consent and approval with regards to the alleged transfer of your interest in the joint asset constitutes a grave breach of the terms of the JOA and NEPL’s reserves its right in relation to the said breach- including NEPL’s entitlement to invalidate the purported assignment to OOL.
“Please note that as holders of 60 per cent participating interest in the NEPL/NAOC/ OOL JV, we are indeed concerned that the entire purported assignment was executed without due compliance with the terms of JOA. We expect that all parties to the JOA will comply and observe the terms of the JOA”.
Meanwhile, the management of Eni’s subsidiary, NAOC, has concluded plans to engage labour over the sale of the assets this week.
The Petroleum and Natural Gas Senior Staff Association of Nigeria, (PENGASSAN) had ordered the withdrawal of its members from all offices and field locations of Eni, over the sale deal.
However, the source’s checks indicated that the two parties have resolved to meet this week in order to allay the fears of workers, who are sceptical that the sale of the assets would culminate in retrenchment.
There are indications that the workers are scarred that the deal would lead to their retrenchment because they were not sufficiently carried along, hence the management has decided to engage them in order to restore harmony and enhance operations.
Chairman of PENGASSAN, Agip Group, Eyong Survival, had said, “The Managing Director of Eni Nigeria, Mr. Fabrizio Bolondi, invited the workforce to a meeting on September 4, 2023, and callously informed us that Eni has sold its 20 percent equity share in NAOC JV, comprising OML 60, 61, 62 and 63, covering parts of Rivers, Delta, Bayelsa, and Imo States to Oando Nigeria Limited, transferring all its assets and liabilities to Oando without recourse to outstanding financial obligations to the workers, vis-a-vis their employee savings plan, pension, and gratuity”.
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The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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