ConocoPhillips leaves Nigeria, sells assets to Oando for $1.79 billion

Global oil-giant, ConocoPhillips is leaving Nigeria, after years of operating oilfields at several parts of the country. ConocoPhillips is selling its assets to Oando Energy Resources (OER) for $1.79 billion plus customary adjustments.  This will extend Oando’s asset in onshore and offshore resources in the Nigerian oil sector, and the organization has paid $435 million cash deposit, and is expected to complete the payment by mid-2013. Speaking on the deal, CEO of Oando Plc, Wale Tinubu said, “Upon closing, we expect that this will be a transformational transaction for OER, as the company has only been listed on the Toronto Stock Exchange (TSX) for about 5 months and now has an opportunity to execute its strategy and materially increase its production and reserves base. In our view, the combination of the right timing, right assets and the right company can lead to significant value creation in the Gulf of Guinea. We expect that the closing of this transaction will position OER as a leading, indigenous independent E&P player in Nigeria.” The CEO of Oando Energy Resources (OER), Pade Durotoye, said, “This potential transaction represents a transformational 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. 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.”