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Oando to complete $1.68bn ConocoPhillips acquisition January 31

By BusinessNews Staff on December 3, 2013

Oando Energy Resources, the Upstream subsidiary of Oando Plc listed on the Toronto Stock Exchange, has said it will complete the $1.68bn acquisition of the Nigerian assets of ConocoPhilips on January 31, 2014.

The company, in a statement on Sunday, said it had extended the closure date of its acquisition of ConocoPhillips’ Nigeria business by 60 days from November 30, 2013 to January 31, 2014.

According to the Head, Corporate Communications, Oando Group Plc, Dr. Alex Iruna, OER has affirmed its commitment to completing the acquisition.

He said, “The availability of $815m in committed credit facilities from local and foreign banks and the already paid $435m deposit place OER in good stead to finalise the financing of the balance necessary to close the $1.68bn purchase.”

Oando has steadily focused on Upstream diversification in an effort to increase annual free cash flows and increase value creation for shareholders.

This acquisition, Iruna said, would be a transformational milestone, making Oando the largest indigenous exploration and production company in Nigeria with 50,000 barrels of oil equivalent per day in production, 236 million in 2P reserves and over 500 million in contingent resources.

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