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 expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.