September 7, (THEWILL) – The Nigerian National Petroleum Company (NNPC) Limited has denied reports that it is opposed to the sale of the shares of Nigerian Agip Oil Company Limited (NAOC) to Oando Plc.
The clarification follows media reports quoting a communication between NNPC E&P Limited and NAOC concerning the recently reported sale of 100 percent shares of NAOC to Oando as announced by Oando earlier in the week.
In a statement by NNPC Limited on Thursday, signed by its Chief Corporate Communications Officer, Garba Deen Muhammad, the national oil company said it was not opposed to the NAOC-Oando share transfer agreement as reported in the media.
The NNPC said the recent letter erroneously being referred to as communicating its opposition to the share transfer agreement between NAOC and Oando, was sent by NEPL, an NNPC subsidiary (not by NNPC).
It said the letter did not contain an objection by NNPC to the sale of NAOC shares to Oando as being misrepresented in the media.
“It has come to our notice that a routine communication in the form of a letter written by NNPC E&P Limited (NEPL) to its JV Partner, Nigerian Agip Oil Company Limited (NAOC), is being interpreted to suggest that NNPC Limited is opposed to the sale of NAOC shares to Oando Plc. This is not correct.
“NNPC wishes to state that the letter was sent by NEPL, an NNPC Limited subsidiary. However, nowhere was opposition or objection to the transaction mentioned in the letter.
“NEPL was only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error.
“Adherence to those clauses will protect the transaction, now and in the future,” NNPC said.
THEWILL recalls that Oando Plc had earlier announced that it had sealed a deal with Eni (the parent company of NAOC) to acquire the 100 percent shares of its Nigerian subsidiary, NAOC and that the deal was subject to ministerial approval.
The announcement prompted the letter by NPEL to NAOC seeking clarification on the “purported sale of its shares to Oando Plc”.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
