NNPC SUBSIDIARY RAISES QUESTIONS OVER AGIP-OANDO ASSETS SALE DEAL

and Oando to decide on a successor operator.

“Please note that as holders of 60 per cent participating interest in the NEPL/NAOC/OOL JV, we are indeed concerned that the entire purported assignment was executed without due compliance with the terms of the JOA.

“We expect that all parties to the JOA will observe and comply with the terms of the JOA.

“In view of the foregoing, we request NAOC’s confirmation to NEPL, the authenticity or otherwise of the reported divestment to enable us to determine our next steps with regards to the management/operations of the assets,” the document stated.

When THISDAY contacted the General Manager, Business Support Group, Oando Energy Resources, Alero Balogun, she noted that the letter was directed at NAOC, and thus, it was unable to comment on it.

“However, we trust that, as requested by NEPL, NAOC will engage accordingly to ensure that their concerns are addressed.

“In the meantime, we would like to reiterate that Eni has not assigned its 20 per cent interest in the NAOC JV to Oando PLC.

“The statements Oando and Eni put out spoke to the signing of a sales and purchase agreement for the purchase of 100 per cent of the shares of NAOC Ltd by Oando subject to the fulfilment of conditions precedent, including receipt of all relevant regulatory and partner approvals,” Oando explained.

Oando added that it had earlier highlighted clearly that the transaction was subject to ministerial and all regulatory approvals.

Meanwhile, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has shut down the Brass crude oil export terminal in protest against the plans by Italian energy group, Eni to sell NAOC, its local subsidiary to Oando Plc.

The oil workers, who expressed displeasure over the sale of Agip's oil, gas and power assets without prior consultation with them, had demanded that Eni put the sale on hold until they have been properly consulted and terms for transfer of services agreed.

The shutdown of the Brass crude terminal and other NAOC assets started on Tuesday, according to PENGASSAN sources.

"NAOC management only told workers about the sale on September 4, the day the deal was made public, having denied plans for any such sale when worker representatives asked at a meeting in July", PENGASSAN said.

Besides the Brass terminal, the joint venture operates four onshore oil blocks in the Niger delta, two onshore exploration leases, 12 flow stations, three gas processing plants and two power plants. NAOC also has a five per cent interest in the Shell-operated SPDC joint venture in Nigeria, which is not included in the sale.

The Brass terminal received 24,000 barrels of crude on September 4. Receipts averaged 27,000 bpd last month. The last tanker to load there, the Seavision, departed for Italy with a 349,000bl cargo on August 22, Argus Media reported.

Oando acquired its 20 per cent stake in the NAOC joint venture when it bought US firm, ConocoPhillips' Nigerian business for $1.5 billion in 2014.

Buying NAOC from Eni will lift Oando's interest in the joint venture to 40 per cent and increase its reserves by 98 per cent.