NNPCL Not Against Sale Of Shares Of Agip Oil Company To Oando Plc

The Nigerian National Petroleum Company Limited on Thursday faulted some reports published by some media platforms (NOT THE WHISTLER) that it is opposing the sale of the shares of Agip Oil Company to Oando Plc.

The NNPCL said in a statement signed by Garba Deen Muhammad, Chief Corporate Communications Officer, that nowhere was opposition or objection to the transaction mentioned in the letter which it sent to it’s Joint Venture Partner, Nigerian Agip Oil Company Limited

The statement reads, “It has come to our notice that a routine communication in the form of a letter written by NNPC E&P Limited (NEPL) to its JV Partner, Nigerian Agip Oil Company Limited (NAOC) is being interpreted to suggest that NNPC Ltd. is opposed to the sale of NAOC shares to Oando PLC. This is not correct.
 

“NNPC Ltd. wishes to state that the letter was sent by NEPL, an NNPC Ltd. subsidiary. However, nowhere was opposition or objection to the transaction mentioned in the letter.

“NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error. Adherence to those clauses will protect the transaction, now and in the future.”

The National Oil Company had said in the letter that its consent as a member of the joint venture member operating ENI’s onshore asset, was not obtained before the planned divestment to Oando.

This, the NNPCL stated, was against contract rules governing the joint venture operation, and could affect the deal.

In a letter to the Managing Director of Nigerian Agip Oil Company Ltd, dated September 4, the NNPCL said if the deal goes through, it would have far-reaching contractual/legal implications in relation to the joint Operating Agreement dated July 1991 governing the operations of the NAOC/NEPL/OOL Joint venture.

The letter was signed by Ali Muhammed Zarah, Managing Director of NNPC E&P Limited.

Recall that Italian oil major Eni issued a press release saying that it had signed an agreement with Oando, an energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange, for the sale of all its stake in Nigerian Agip Oil Company Ltd (NAOC Ltd), a wholly-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.

But the NNPC Ltd argued that by virtue of the agreement, a party seeking to transfer part or the whole of its participating interest in the Joint Venture is obligated to seek the prior written consent of the other parties, especially since it controls 60 percent of the stake.