The transaction is subject to customary adjustments.
As per the agreement signed in 2012, OER will acquire ConocoPhillips’ Phillips Oil Company Nigeria (POCNL), which holds 20% non-operating interest in Oil Mining Leases (OMLs) 60, 61, 62, and 63.
In addition, the company will also buy out all the related infrastructure and facilities in the Nigerian Agip Oil Company Joint Venture (NAOC JV).
The 20% interest in NAOC JV will include 40 discovered oil and gas fields, 40 identified prospects, 12 production stations, about 950km crude oil, and natural gas liquids and gas pipelines.
It also covers two gas processing facilities, Brass River Oil Terminal, Kwale-Okpai 480MW combined cycle gas-fired power plant and associated infrastructure.
Under the agreement, ConocoPhillips will also sell its Phillips Brass (PBL) to OER.
The offshore business of ConocoPhillips includes Conoco Exploration and Production Nigeria (CEPN) with 95% interest in OML 131, and the company’s Phillips Deepwater Exploration Nigeria (PDENL) with 20% non-operating interest in oil prospecting licenses (OPL) 214.
As per the agreement, Oando will purchase all the issued share capital of POCNL, PBL, CEPN, and PDENL.
OER chairman Wale Tinubu said "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," Tinubu added.
