Oando agreed to buy the Nigerian exploration and production unit of Italian oil major Eni for an undisclosed amount, a statement by the oil driller said on Monday.

The consummation of the deal is subject to ministerial consent and other regulatory authorisations. Shares in Oando, which has a secondary listing in Johannesburg, jumped by 9 per cent in Lagos at 10:56 WAT following the news.

The pact clears the way for Oando to acquire 100 per cent of the shares of Nigerian Agip Oil Company Limited (NAOC), which has interests in four onshore blocks and two onshore exploration leases in the country.

It will ramp up Oando’s current participating interests in OMLs 60, 61, 62 and 63 from 20 to 40 per cent.

“It increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure, which include forty discovered oil and gas fields, of which twenty-four are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the KwaleOkpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure,” the document said.

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Oando’s reserves total 503.3MMboe according to a 2021 reserves estimate, meaning the acquisition will trigger a 98 per cent increase.

The transaction also expands Oando’s exploration asset portfolio via the purchase of a 90 per cent stake in OPL 282 and a 48 per cent stake in OPL 135.

NAOC’s participating interest in Shell Production Development Company Joint Venture (operator Shell 30 per cent, TotalEnergies 10 per cent, NAOC 5 per cent, NNPC 55 per cent) is not part of the deal and so will be retained in Eni’s portfolio, Oando said.

“The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimise resource allocation, and significantly increase production,” Oando’s CEO Wale Tinubu said.

“Today’s announcement is not just an important milestone for the future of Oando; it brings to bear the important role indigenous actors will play in the future of the Nigerian upstream sector,” he added.

Last October, NNPC Limited acquired OVH Energy Marketing, owner and operator of Oando branded retail service stations, enabling the state oil firm to control Oando’s 380 filling stations across Nigeria.