Nigeria's Oando Pays $197MM for Agip Deepwater Blocks

IBADAN, Nigeria (Dow Jones Newswires), Jan. 12, 2009

Oando PLC, Nigeria's integrated energy solutions provider, has paid $197 million to Eni SpA (E) unit Agip for a 15% stake in Oil Mining Licenses 125 and 134, the company's head of corporate communications said Monday.

Niyi Olowola said in a statement that OML-125 currently produces approximately 20,000 barrels of oil a day from the Abo field, which is expected to double production to 40,000 barrels a day later this year as a result of a recent drilling campaign.

OML-134 still in exploration phase, but has oil has been found and an appraisal well is being drilled.

The acquisition comes a week after Oando acquired a 30% stake in the Akepo oilfield and is "a further attestation to its resolve to acquire active near-term production assets in its rapidly growing oil and gas portfolio," Olowola said.

Wale Tinubu, Oando's group chief executive said the move is a "significant milestone for Oando as we officially join the league of companies with interests in deep offshore producing assets," the first Nigerian company to do so.

"This acquisition will contribute to our strategic target of 100,000 (barrels of oil a day) by 2012, as we continue to explore opportunities to build a robust portfolio of oil and gas properties."  

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