Oa n d o P l c through its s ub s i d i a r y, Oando Energy Resources and 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.
Having received consent of the minister of petroleum resources both parties have extended the outside closing date for completion of the acquisition to enable them finalise activities required to conclude the transaction.
The Federal Government finally approved the acquisition of the Nigerian upstream Oando, ConocoPhillips agree to extend date for completion of acquisition deal oil and gas business of ConocoPhillips by Oando Energy Resources (OER) Incorporated for a total cash consideration of $1.65 billion subject to customary adjustments.
Oando announced in a recent statement the receipt of the consent of the minister of petroleum resources, Diezani Alison-Madueke, for the acquisition of the business.
It said that further to the receipt of consent of the minister, OER and ConocoPhillips were now positioned to complete the transaction.
Wale Tinubu, chairman, OER, was quoted in the statement as saying, “We are delighted to receive the approval of the minister of petroleum resources for the completion of the acquisition.
It has been a long journey, wherein we kept faith with our strategy and executed every milestone diligently.
“This acquisition satisfies our criteria for assets in production as well as excellent appraisal and exploration prospects. The coast now stands clear for us to immediately complete the acquisition.”
OER will now work with ConocoPhillips towards completing the acquisition by the long stop date of June 30, 2014 or shortly thereafter,
according to the statement.
In February this year, Tinubu had said, “We are immensely pleased to have secured all funding to complete our acquisition of ConocoPhillips’ Nigerian assets. We are tremendously excited about the future of our organisation as this acquisition will not only provide significant growth in size and scale, but will substantially strengthen our position in the upstream sector.”
The Oando boss had also said though the company had duly completed all financial commitments regarding the acquisition, the closing of the ConocoPhillips acquisition remained subject to the satisfaction of the closing conditions, including approval from the minister.
In December 2012, Oando Plc, through its subsidiary, Oando Energy Resources, entered into an agreement with ConocoPhillips to acquire
the latter’s Nigerian businesses for the said total cash consideration.
