Oando to acquire Nigerian business of ConocoPhillips

walethimbuOando group chief executive, Wale Tinubu. (Image source: Oandoenergyresources)Nigerian energy group Oando has announced that its affiliate Oando Energy Resources (OER) has entered into a deal with ConocoPhillips (COP) to acquire COP’s Nigerian business interests

The transaction will cost an estimated amount of US$1.79bn, including customary adjustments.

Oando said that the agreement would entail the purchase of two onshore businesses and two offshore operations, which will include Conoco Exploration and Production.

It added that the proposed acquisition by Oando would represent a significant opportunity for OER and its shareholders with the addition of a significant share of six discovered fields and eight prospects in two offshore blocks.

Oando Energy Resources CEO Pade Durotoye said, “This potential transaction represents a transformation step forward for our company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high quality growth in reserves and production.”

Oando group chief executive Wale Tinubu added that he expected the closing of the deal would be a “transformational transaction for OER”.

The proposed acquisition will be expected to close by the first half of 2013, following appropriate consultations with stakeholders.

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