Oando

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Oando PLC
Public
Traded as NSEOANDO
JSE: OAO
TSXOER
Industry Oil and Gas
Founded 1956
(ESSO)
Headquarters Victoria Island, Lagos, Nigeria.
Area served
West Africa
Key people
Adewale Tinubu (GCE)
Omamofe Boyo (DGCE)
Products Oil
Petroleum
Natural gas
Petrochemical
Fuel
Lubricant
Revenue Increase 449.8 Billion (2013)
Increase 16.5 Billion (2013)
Total equity Increase 162 Billion (2013)
Number of employees
1,000
Website www.oandoplc.com
Zenon House, where Oando's corporate Headquarters is located

Oando is Nigeria's largest independent conglomerate in the energy industry, including petroleum products marketing, supply & trading, exploration and production, and gas distribution, and the first Nigerian company to achieve a dual listing on both the Nigerian and Johannesburg Stock Exchanges. Oando is Nigeria's largest indigenous oil company with a production output of 54,000 boepd and a market capitalisation of $894 Million.

Through its upstream subsidiary Oando Energy Resources (OER), Oando has a secondary listing on the Toronto Stock Exchange with a market capitalisation approximately $1 Billion.

History[edit]

Oando’s earliest roots can be traced to the formation of Esso Africa in 1956. Esso Africa was a petroleum marketing company, a subsidiary of the Exxon Corporation of USA. In 1976, the Nigerian government purchased a controlling stake in the company and rebranded the company as Unipetrol Nigeria. On 1 March 1991, Unipetrol became a Public Limited company. Later on in the same year, the Nigerian government sold 60% equity to the Nigerian public in an Initial Public Offering. By February 1992, Unipetrol was listed on the Nigerian Stock Exchange.[1]

In 1990 Benedict Peters became the co-founder of Ocean and Oil Limited, known today as Oando [2]

In 1999, Unipetrol acquired a 40% stake in Gaslink Nigeria Limited, a gas utility company. The acquisition was motivated by a desire to utilize its exclusive gas sale and purchase agreement with the Nigerian gas company. In 2001, the company increased its stake to 51 per cent. So far, Gaslink has developed 250 km of gas pipeline infrastructure.

In 2000, Ocean and Oil, a private investment company led by Nigerian entrepreneurs Adewale Tinubu and Omamofe Boyo acquired a 30% controlling interest in Unipetrol Plc. In 2001, Ocean and Oil increased its stake in Unipetrol to 42% via an irredeemable convertible loan stock issue.

In 2002, Ocean and Oil led Unipetrol's bid for a 60% stake of Agip Nigeria Plc, a rival petroleum marketing firm, owned by Agip Petroli BV, an Italian-based oil company. The merged company was named Oando PLC in 2003, making the company the largest downstream petroleum marketing company in Nigeria.

In 2005, Oando Energy Services was incorporated as an integrated Oilfield Services company to achieve the group’s objectives in the upstream services industry.

In 2007, Oando Energy services acquired two oil drilling rigs in Nigeria’s Niger Delta. In 2008, the company emerged Nigeria’s first indigenous oil company with interests in producing deep water assets through the acquisition of equity in two oil blocks. By 2009, the company had acquired 5 swamp rigs and in 2010, the company launched its first Independent Power Plant for the Lagos Water Corporation. The project involved the construction of a 12.5MW power plant to provide uninterrupted power supply to the Lagos Water Corporation.

In 2011, Oando Gas and Power commissioned 128 km EHGC Pipeline, the pipeline was built under a joint venture arrangement with the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC)]. The gas infrastructure has the capacity to deliver up to 100 million standard cubic feet per day (mmscf/d) of natural gas and will deliver an initial 22mmscf/d of gas to its maiden customer, United Cement Company (UNICEM), to fuel its new 2.5million metric tonnes per annum cement plant, located in Mfamosing, Akampka Local Government Area of Cross River State.

In 2012, Oando Exploration and Production Limited ("OEPL") signed a farm-in agreement with Network Exploration & Production Nigeria Limited ("NEPN") for the acquisition of 40% participating interest in the Qua Iboe field (OML 13) subject to the consent of the Minister of Petroleum.[3]

In 2013, Oando Plc succeeded in raising over N55.2 billion from the capital markets as its Rights Issue recorded 101 per cent subscription. The company issued 4.548 billion shares to existing shareholders at N12 per share between December 2012 and February 2013 with the intention of raising N54.6 billion. Oando Gas and Power commissioned 10.4 MW Alausa Independent Power Plant to provide electricity to the Lagos State Secretariat Complex. Following the decommissioning of OES Professionalism in 2013, OES currently has a fleet of 4 rigs; OES Teamwork, OES Respect, OES Integrity and OES Passion.[4]

In 2014, Oando divested the 128 km Eastern Horizon Gas Company (EHGC) franchise in a $250 Million transaction with Seven Energy.[5]

In 2014, Oando Energy Resources ("OER") listed on the TSX an affiliate company of Oando PLC entered into agreements with ConocoPhillips ("COP") to acquire its entire business interests in Nigeria for a total cash consideration of ~ $1.5 Billion.[6]

In June 2015, Oando entered into an agreement with HV Investments II B.V., ("HVI"), a joint venture owned by a fund advised by Helios Investment Partners ("Helios") and The Vitol Group ("Vitol"), for a cash investment of US$276.8 million in Oando’s Downstream business.[7]

Overview[edit]

From its beginnings as a fuels marketer, the company has grown to become a sub-Saharan integrated energy company. Oando currently operates a group structure consisting of six subsidiaries across the energy value chain. The company plans to become Africa's energy major.

Oando employs close to 1,000 personnel in various West-African countries. Oando Marketing Limited, the company's downstream subsidiary owns Nigeria's largest petroleum retail network with over 600 Petrol stations. Oando Supply & Trading, another subsidiary of the company is Nigeria's largest independent importer of PMS. The company imported up to 4 million metric tons of white products into Nigeria between 2007 and 2009. In the Upstream sector, Oando Exploration & Production (OEPL) is the operator of two oil blocks in Nigeria's Niger Delta region – OPL 278 and OPL 236. The company is also a Nigerian Content Partner with AGIP Oil on OPL 282 and has a 45% interest in a marginal field, OML 56.

Operating divisions[edit]

Oando PLC is organized functionally into a number of operating divisions. These divisions are grouped into three categories:

  • Upstream: Oando Energy Resources (OER, The leading indigenous exploration and production company in Nigeria), Oando Energy Services (OES, Nigeria's largest indigenous rig services provider)
  • Midstream: Oando Gas & Power (OG&P, building Sub-Saharan Africa's largest gas pipeline grid, developing independent power plants in Nigeria), Akute Power Limited, Alausa Power Limited, Gaslink Nigeria Limited, Gas Network Services Limited
  • Downstream: Oando Marketing PLC (OMP, Nigeria's leading oil retailer), Oando Supply and Trading (OST, Africa's largest independent and privately owned oil trading company), Oando Terminaling and Logistics (OTL, propelling development of infrastructure to drive efficiency across the downstream)

Board of directors[edit]

As of October 2013:

  • Chairman: HRM Oba M. A. Gbadebo
  • Group Chief Executive: Jubril Adewale Tinubu[8]
  • Deputy Group Chief Executive: Omamofe Boyo
  • Group Executive Directors: Bolaji Osunsanya, Femi Adeyemo
  • Independent Non-Executive Director: Ammuna Lawan Ali, Francesco Cuzzocrea, Sena Anthony, Oghogho Akpata, Yusuf N’jie, Tanimu Yakubu

Strategic Assets[edit]

  • Over 460 Retail Outlets in West Africa
  • 7 Petroleum Storage Depots
  • 3 Aviation Fuel Depots
  • 2 Bitumen Plants
  • 2 Lubricant Blending Plants
  • 8 LPG Filling Plants
  • 1 Grease Plant
  • 1 Aerosol Filling Plant
  • 100 km gas pipeline in Lagos and 128 km (ongoing) in South Eastern Nigeria
  • 4 swamp drilling rigs
  • 16 licences for exploration, development and production of oil and gas concessions in OER.

References[edit]

  1. ^ "Oando PLC - Mining companies in Africa". Mining Africa. Retrieved 2017-04-26. 
  2. ^ "Benedict Peters - CEO Aiteo Group". Benedict Peters. Retrieved 2017-04-04. 
  3. ^ "Oando to acquire 40% interest in Qua Iboe". Punchng.com. Archived from the original on 5 June 2012. Retrieved 28 December 2016. 
  4. ^ "Lagos inaugurates Alausa power project". Thisdaylive.com. Archived from the original on 21 October 2013. Retrieved 28 December 2016. 
  5. ^ "Oando completes profitable sale of EHGC Franchise". Businessdayonline.com. Archived from the original on 6 April 2014. Retrieved 28 December 2016. 
  6. ^ "ConocoPhillips completes sale of Nigeria business to Oando". Energymixreport.com. 30 July 2014. Retrieved 28 December 2016. 
  7. ^ "Helios Vitol linked firm takes n62bn stake in Oando downstream". Businessdayonline.co. Archived from the original on 5 July 2015. Retrieved 28 December 2016. 
  8. ^ Zaln Verjee (30 November 2010). "Wale Tinubu: Africa is 'most interesting frontier' market right now". Cnn.com. Retrieved 28 December 2016. 

External links[edit]