London, United kingdom | – Oando Energy Resources Inc., a company focused on oil and gas exploration and production in Nigeria, today announced the completion of its acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhilips for a total cash consideration of US$1.5 billion after customary adjustments plus a deferred consideration of US$33 million.
The sales price is inclusive of $550 million of deposits received, approximately $900 million received at closing, plus $33 million in deferred payments. The sales price less the cash in the business at closing, approximately $100 million, generated net proceeds of approximately $1.4 billion, after customary adjustments. The company expects to recognize an after-tax gain of approximately $1.1 billion for the sale.?
ConocoPhillips also announced that it has transferred its 17% shareholder interest in Brass LNG Limited, along with all of its related interests, to the remaining shareholders of Brass LNG Limited. The transfer did not have a material impact to the company’s results.
“We are pleased to complete these transactions with Oando PLC and the Brass LNG Limited shareholders,” said Don Wallette, E.V.P., Commercial, Business Development and Corporate Planning. “We appreciate the long and productive relationship we have had with the government of Nigeria and our partners.”
Proceeds from the sale will be available for general corporate purposes, including investments in the company’s higher-margin, organic growth programs.
“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 Pade Durotoye, CEO, OER. “Our management team is familiar with these assets and possess the managerial experience and technical expertise necessary to unlock their value for our shareholders.”
Also commenting, Mr. Wale Tinubu, Chairman, OER said “we believe in the significant potential that the Nigerian oil and gas industry holds and are privileged to play a pivotal role in its consolidation, growth and development. We will continue to seek strategic opportunities that provide a platform for enhanced growth and value creation for our stakeholders”.