Nigeria-based Oando Energy Resources bought ConocoPhillips’ Nigerian upstream oil and gas businesses for US$1.5 billion plus a deferred consideration of US$33 million, Oando said Thursday.
Oando, an independent upstream company, will indirectly own all issued share capital of Conoco’s onshore business Phillips Oil Company Nigeria Limited and its offshore businesses Conoco Exploration and Production Nigeria Limited and Phillips Deepwater Exploration Nigeria Limited.
The offshore assets include a significant share of six separate discovered fields and eight separate prospects.
Those assets have combined estimated reserves of 281.6 million barrels oil equivalent (MMboe), Oando said.
Oando currently has production, development and exploration assets in the Gulf of Guinea, primarily in Nigeria.
The purchase will increase Oando’s proved plus probable reserves by 211.6 MMboe.
Provable and probable reserves and resources now attributable to Oaando as of December 31, 2013 are estimated at 536.8 MMboe.
With the purchase, Oando’s sales production was 41,071 barrels of oil equivalent per day (boe/d) in 2013 and 44,512 boe/d in the first half of 2014.
“This transaction represents a transformational leap 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,” said Oando CEO Pade Durotoye.