The Italian energy company Eni signed a contract on Monday to sell its Nigerian Agip Oil Company (NAOC) subsidiary to Oando of Nigeria, according to a statement from the company.
This is the latest action by a major energy company to leave the country. Nearly all international oil majors, including Shell and Exxon Mobil Corp., are attempting to sell their onshore assets in the nation due to widespread oil theft from pipelines, ongoing conflicts with communities, and more concentrated exploration expenditures.
According to the company, Eni’s NAOC, which specialises in oil and gas exploration and production, holds stakes in two onshore exploration leases and four onshore blocks in Nigeria.
In a letter on Monday, Jefferies stated that Eni reduces its exposure to a difficult region plagued by bunkering and other disruptions and that the group mentions a consideration of over $500 million and strong metrics considering the difficult location of these blocks.
According to Jefferies, the deal has no effect on Eni’s projections.
Local and regulatory approval are required for the transaction. Political and legal obstacles in Exxon and Shell’s asset sales have prevented similar approvals.
According to the company’s 2023–2026 plan, Eni will keep its 5% investment in the joint venture Shell Production Development Company (SPDC), which is run by Shell, after disposing of NAOC.