The Nigerian mergers and acquisitions space is ending the year with big news with the recent acquisition of Conoco Phillips by Oando for $1.79 billion.
Oando will take a 20% stake in an on shore joint venture, a 20 percent stake in the Kwale Okpai Independent power plant and a 17 percent stake in the Brass LNG project.
It will also take a 95 per cent operated interest in the Chota Field amongst others.
Oando’s C.E.O. Pade Durotoye had this to say about the deal:
“This represents a transformational step forward for our company.
“Our management team is familiar with the assets contained in this proposed transaction and, we believe, possess the regional experience and technical expertise necessary to capture and unlock their future value for our shareholders.”
The deal is expected to close by the middle of next year and is part of what Conoco calls its asset disposition program.
According to Don Wallette, ConocoPhillips’s executive vice-president, of commercial, business development, and corporate planning,“This intended sale represents further progress on our asset disposition program.”
“We are pleased that Oando PLC recognizes the value of this asset.”