Sandesara Family's Sterling Oil Adds Eni's AENR To Its Nigerian Portfolio

LAGOS / MUMBAI: Sterling Oil Exploration and Energy Production Company Limited has expanded its Nigerian energy portfolio through the acquisition of Agip Energy and Natural Resources (Nigeria) Limited (AENR), a subsidiary of Italy's Eni. The transaction adds a 5% interest in the Renaissance joint venture, which operates oil and gas assets in the Niger Delta. Nigerian National Petroleum Company Limited holds 55%, Renaissance holds 30% and operates the venture, and TotalEnergies holds 10%.

The acquisition was completed through Apex Global Energy Limited, a wholly owned subsidiary of Sterling Oil, with Eni announcing the completion on October 26. The transaction was done at an undisclosed price; a day later, TotalEnergies sold its 10% oil interest in the same venture to Vaaris Energy for about ₹6,700 crore ($800 million). Eni, which described Sterling Oil in its statement as "one of Nigeria's leading operators in the onshore sector", will retain its deep offshore assets and its stake in Nigeria LNG.

The move builds on Sterling Oil's established presence in Nigeria. According to the company, its entry into the country dates back to the 2005 licensing round, when it secured Oil Mining Lease 143 in Anambra State. The company says it developed the Okwuibome field and has produced Okwuibome Blend crude since 2011, supplying international markets in Europe and Asia. The company also says it has shipped more than 13 million barrels of crude oil to Indian public-sector refiners so far this year.

The newly acquired interest broadens Sterling Oil's participation in the country's oil and gas industry. While the company will not operate the Renaissance venture directly, the 5% stake gives it a share in the venture's production and associated costs.

Sterling Oil is family-owned by the Sandesara family. It is privately held and debt-free, with no public shareholders or institutional investors. Its business in Nigeria has developed over more than two decades, the company says, with the latest transaction a further step in expanding its portfolio in the country.

The acquisition also reflects the opportunities emerging from the restructuring of Nigeria's onshore oil sector. As international companies reassess their portfolios, established operators and new investors are taking on interests in assets that remain central to the country's energy production.

For the debt-free, family-owned Sterling Oil, the AENR acquisition adds a new investment to its existing operations in Nigeria's changing oil and gas market.