Wale Tinubu, Chairman of Oando Energy Resources said, “We are delighted to receive the approval of the Honourable Minister of Petroleum Resources for the completion of the acquisition.”
The date of the aquisition of the Nigerian upstream oil and gas business of ConocoPhillips, was extended several times in anticipation of the minister’s consent.
[DATA OAO:Oando Energy Resources] initially paid a deposit of 450 million dollars and received added funds through debt commitment letters from financial institutions (815 million dollars), private placement of shares (200 million dollars) and the recent sale of its EHGC asset, Seven Energy for 250 million dollars.
(READ MORE: Oando sells East Horizon Gas share capital)
The ConocoPhillips transaction is now positioned to be completed.
“It has been a long journey, wherein we kept faith with our strategy and executed every milestone diligently. This acquisition satisfies our criteria for assets in production, as well as excellent appraisal and exploration prospects. The coats now stands clear for us to immediately complete the acquisition,” Tinubu added.
Oando is now set to work with ConocoPhillips towards completing the acquisition by the long stop date of June 30 or shortly after.
Once completed, Oando’s operations will be substantially boosted with production of about 50,000 barrels of oil equivalent per day post the acquisition, which is expected to generate significant growth in revenue and profitability.