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Oil driller Oando won the bid to operate an oil block in Angola, according to statement by the company on Wednesday, marking its entry into Africa’s second biggest oil producing nation.
Its upstream arm Oando Energy Resources was awarded the operatorship to run the block in Onshore Kwanza Basin after a bidding process arranged by the Angolan National Agency for Petroleum, Gas and Biofuels, the filing said.
Oando is listed on the Nigerian Exchange in Lagos, with a secondary listing in Johannesburg.
The company is on a drive to ramp up capacity, which led in August to the full acquisition of Eni’s local unit, the Nigerian Agip Oil Company, for $783 million.
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The transaction raised Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent, helping buck up the energy provider’s total reserves by 98 per cent.
Oil-rich Kwanza Onshore Basin offers substantial exploration potential in both pre-salt and post-salt plays, Oando stated.
The estimated prospective resources of the basin range from 770 million to 1.1 billion barrels of crude.
Oando will hold a 45 per cent participating interest in the block, and lead its development as operator.
Other companies in the joint venture are Effimax with a 30 per cent interest and Sonangol with a 15 per cent holding.
READ ALSO: Oando wins ‘Deal of the Year’ award at Africa Energy Week 2024
“This development underscores Oando’s relentless commitment to expanding our footprint across Africa and contributing to the continent’s energy sufficiency goal,” said CEO Wale Tinubu.
“I am confident in our ability to leverage our expertise to develop and maximise the value of this asset,” he added.
Oando Energy Resources holds interest in fourteen oil and gas assets spanning exploration, development and production onshore and offshore in Nigeria as well as in Sao Tome and Principe.
Oando reported a 30.8 per cent slide in net profit to N76.3 billion in the nine months to September.
Its revenue for the period surged 35.8 per cent to N3.2 trillion, according to its earnings report.
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