Oando to sue individuals, entities spreading false information about NAOC transaction

Oando Plc has warned individuals and entities against spreading false information about the Nigerian Agip Oil Company (NAOC) transaction.

In a statement on Monday signed by Ayotola Jagun, the company’s secretary, Oando said it will sue those that do not desist from spreading inaccurate information.

On August 22, Oando said it completed the acquisition of Eni’s 100 percent shareholding in the NAOC for $783 million.

Reacting to the deal on August 25, Atiku Abubakar, former vice-president, asked the federal government to explain why Oando Plc, “owned by the president’s nephew,” received accelerated approval to buy the onshore assets of Agip and Eni while other transactions — such as the Shell-Renaissance and the ExxonMobil-Seplat deals — continue to suffer delays.

In response to Atiku’s claim, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), on August 26, said the divestment of NAOC to Oando was conducted in accordance with the Petroleum Industry Act (PIA) 2021 and the commission’s standard consent approval process.

Also commenting on the reactions that trailed the completion of the deal, Oando described the claims as “malicious, baseless, and false,” asserting that they have been deliberately propagated by certain individuals and their agents.

The company said such claims not only damage its reputation but also mislead the public, adding that it will not tolerate any attempts to tarnish its image or disrupt its operations through baseless and defamatory claims.

“To this end, the company has instructed its legal team to closely monitor the situation and gather evidence against those involved in these malevolent activities as we intend to seek legal redress against any individual or entity found to be responsible for spreading false information against the company and its management,” Oando said.

‘NAOC/OANDO TRANSACTION CONDUCTED WITH UTMOST INTEGRITY’

Oando said NAOC notified the NUPRC of its intent to carry out the transaction on May 16, 2023, and formally submitted its application on November 7, 2023.

The company said following the NUPRC’s recommendation, the commission granted ministerial consent for the transaction in accordance with the relevant laws on July 12, 2024.

“The timeframe under the PIA, from receipt of the application from the assignor to the grant of ministerial consent is clearly stipulated in the law to be a total of 180 days,” Oando said.

“The PIA provides a comprehensive regulatory framework for the transfer of upstream oil and gas assets.

“The responsibility for obtaining regulatory consent from the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”, “the Commission”) lies with the asset owner/assignor, in this case, NAOC.

“Specifically, Section 95 of the PIA provides that the holder of a petroleum prospecting licence or petroleum mining lease shall not assign, novate or transfer his licence or lease or any right, power or interest, or a shareholder of an incorporated joint venture shall not sell or transfer its shares without prior written consent of the minister, which shall be granted upon the recommendation of the commission.

“Following a rigorous, transparent and detailed due diligence process and with the effort and co-operation of all parties to the transaction the NAOC/Oando approval process was granted ministerial consent after a total period of 248 days from submission of the application by NAOC to the commission.”

The company reaffirmed its commitment to integrity and transparency in all its dealings, urging stakeholders and the public to rely on official communications from the company, and disregarding any rumours or unverified information.

Oando said it values the trust and confidence of its stakeholders and is dedicated to maintaining open and honest communication, reassuring that the NAOC/Oando transaction was conducted with the utmost integrity and adherence to regulatory standards.