Oando targets July to seal up ConocoPhillips’ assets acquisition

Oando Energy Resources Inc. (OER), a company focused on oil and gas exploration and production in Nigeria, has announced that the company and United States oil major ConocoPhillips have entered into an agreement to extend the outside date for completion of the proposed acquisition of the Nigerian upstream oil and gas business of ConocoPhillips to July 31, 2014.

The parties extended the outside closing date for completion of the ConocoPhillips acquisition to enable them finalise activities required to complete the transaction, having received the required consent of the minister of petroleum resources in Nigeria, the company said in a statement on Monday, published on its website.

OER, the upstream business of Oando plc, had on June 18 announced the receipt of the consent of the minister of petroleum resources for the acquisition of the Nigerian upstream oil and gas business of the Unites States oil major ConocoPhillips for a total cash consideration of $1.65 billion, subject to customary adjustments.

The acquisition of the ConocoPhillips’ Nigerian upstream oil and gas business is expected to position OER as one of the leading indigenous independent exploration and production (E&P) players in Nigeria, as measured by total reserves and production.

OER, which is listed on the Toronto Stock Exchange, had in May said the outside date for completion of the proposed acquisition of the ConocoPhillips’ assets had been extended to June 30, 2014, from April 30 2014. The extension was to enable the companies satisfy all closing conditions, including the anticipated consent of the minister of petroleum resources.

The acquisition, which is expected to boost OER’s oil production to about 50,000 barrels per day (bpd) from about 5,000bpd, comprises the indirect acquisition of all of the shares of Phillips Oil Company Nigeria Limited, Phillips Deepwater Exploration Nigeria Limited, and Conoco Exploration and Production Nigeria Limited.

On December 20, 2012, Oando plc, Nigeria’s leading indigenous energy group, listed on both the Nigerian and Johannesburg stock exchanges, and disclosed that OER had entered into agreements with ConocoPhillips to acquire its entire business interests in Nigeria.