Oando PLC has completed the acquisition of 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the completion of the deal on Wednesday.

NUPRC Chief Executive, Engineer Gbenga Komolafe, made the announcement at the ongoing Oil and Gas Energy Week in Abuja, a significant event sponsored by the Nigerian National Petroleum Company (NNPC) Limited and other industry stakeholders.

The acquisition marks a significant milestone for Oando, a leading indigenous energy solutions provider, solidifying its position in Nigeria’s oil and gas sector.

“This acquisition is a testament to Oando’s commitment to expanding its footprint in the upstream sector,” said Komolafe. “The divestment agreement with ENI, which includes the full acquisition of NAOC Ltd, has been successfully finalized, and we look forward to the signing ceremony in the coming days.”

The NAOC deal is part of a broader wave of acquisitions and divestments within Nigeria’s oil industry, reflecting a dynamic shift in the sector.

Alongside Oando’s acquisition, other major transactions include Equinor’s completed deal with Project Odinmin and the ongoing due diligence for Shell Petroleum Development Company of Nigeria Limited’s (SPDC) transaction with the Renaissance Consortium.

Seplat Energy Offshore Limited is also advancing its proposed takeover of ExxonMobil Nigeria’s offshore shallow water operations, pending ministerial consent.

Oando’s acquisition of NAOC significantly boosts its operational capacity, increasing its participating interests in key Oil Mining Leases (OMLs) from 20% to 40%.

This strategic move not only enhances Oando’s production capabilities but also positions the company to leverage new opportunities in Nigeria’s oil-rich regions.

The NUPRC has emphasized the importance of adhering to regulatory frameworks to ensure smooth transitions and protect national interests.

Komolafe highlighted that while divestments are the right of investors, they must be conducted within the rule of law and best practices to avoid the pitfalls experienced by other countries.

“Countries like Brazil, Canada, and the UK have faced challenges with divestments that were not well-managed,” Komolafe noted. “We aim to avoid similar issues by ensuring that divestments in Nigeria are carried out with thorough due diligence, safeguarding financial capacity, technical capability, and environmental responsibilities.”

Oando’s acquisition aligns with Nigeria’s broader energy strategy, which includes diversifying its energy portfolio and attracting foreign investment.

The country is also focusing on becoming a hub for green hydrogen production, leveraging its abundant solar radiation to support Europe’s energy needs.

As Oando takes the helm of NAOC, the company is expected to drive initiatives that enhance oil production and contribute to sustainable energy solutions.

Guinness Nigeria Plc, one of the leading brewery companies in the country, has reported a financial downturn in its latest unaudited report for the nine months ending March 2024.

The company recorded a loss before tax of N60.45 billion, its first loss in five years while in the same period last year, the company reported N9.94 billion in profit.

The loss is attributed to a combination of increased operational expenses and significant foreign exchange (FX) pressures. Operating expenses surged by 9% from N44.43 billion to N48.50 billion.

This rise in costs, coupled with an 89% increase in FX loss to N83 billion, largely driven by a $22.5 million loan from its parent company and the float in exchange rate in 2023, severely impacted the company’s bottom line.

Despite these challenges, Guinness Nigeria’s revenue saw a notable increase of 27%, climbing to N220.30 billion from N172.47 billion the previous year.

This revenue growth was primarily due to increased local sales, indicating a strong market presence despite the financial hurdles.

Analysts at CardinalStone noted that the elevated cost pressures are expected to persist in the coming quarters, driven by rising inflation affecting locally sourced raw materials and foreign exchange volatility impacting imported products.

They anticipate a flattish EBIT margin of 10.1% for the full year 2023/2024, influenced by high energy prices and increased marketing expenses due to intense industry competition.

The challenging economic environment has led to a significant increase in the prices of many commodities.

Nigeria’s headline inflation hit a 28-year high of 33.95% in May, reflecting the declining purchasing power of consumers.

Despite the current financial setback, there is optimism about the future. Analysts expect a recovery in EBIT margin to 10.2% in the 2024/2025 fiscal year, supported by the localization of raw materials, improved export earnings, and reduced foreign currency exposure.

The recent acquisition of a majority stake by Tolaram, coupled with long-term licensing agreements, is anticipated to provide synergistic benefits and strong revenue growth.

Ardova Plc, a leading indigenous energy company, and global lubricants giant Shell International have joined forces to launch the inaugural “Power Conference.”

The event, themed “Powering Nigeria’s Industries – Enhancing Productivity and Competitiveness,” was held in Lagos and drew significant attention from key stakeholders across the energy sector.

The conference stems from a strategic partnership between Ardova Plc and Shell International, highlighting their joint commitment to advancing Nigeria’s energy sector and fostering economic development.

The collaboration aims to create a platform for discourse on innovative energy solutions and collaborative approaches to drive industrialization and sustainable growth in the country.

In his opening remarks, Abdulwasiu Sowami, Group Executive Chairman of Ardova Plc, said its important to address the nation’s energy challenges through collective efforts.

“The Shell Power Conference serves as a nexus for experts and stakeholders to readdress the pressing challenges facing the Nigerian power sector.

“It underscores the critical need for collaborative approaches to drive industrialization for growth and development.

“At Ardova Plc, our vision is to promote power as a national aspiration by meticulously designing and recognizing key opportunities to provide adequate results,” Sowami stated.

Moshood Olajide, Managing Director at Ardova, reiterated the company’s commitment to fostering innovation and sustainability within the energy sector.

“The Shell Power Conference provides an invaluable platform for collaboration and knowledge-sharing, which is essential for driving progress in our industry. We are excited to participate in discussions that will shape the future of energy and look forward to the opportunities that arise from this esteemed gathering,” Olajide said.

The conference also featured discussions on initiatives and projects aimed at transitioning Nigeria towards a sustainable energy future, aligning with global efforts to combat climate change and reduce carbon emissions.

Keynote speakers and panelists explored innovative solutions and technologies that can enhance productivity and competitiveness in Nigeria’s business landscape.

Samir Mahgoub, Regional Sales Manager for Africa and European markets at Shell International, expressed enthusiasm about the partnership with Ardova.

“We are excited to collaborate with Ardova at the Shell Power Conference in our bid to advance sustainable energy solutions across Nigeria and the West African market. This conference is an opportunity to exchange ideas and explore innovations that will drive energy transition,” Mahgoub noted.

One of the highlighted innovations at the conference was the Shell Lubricant Solution, which utilizes proprietary Gas-to-Liquids (GTL) technology to convert natural gas into high-quality base oils for lubricants.

These GTL-based lubricants are designed to offer greater reliability and superior performance, particularly for the power sector’s transmission and distribution operations.

At the conclusion of the event, attendees expressed optimism about the future of Nigeria’s energy sector and commended Ardova and Shell for their proactive efforts in addressing energy challenges.

The “Power Conference” is expected to be an annual event, serving as a catalyst for ongoing dialogue and collaboration among industry stakeholders to drive sustainable growth and development in Nigeria’s energy landscape.