Oando


Oando PLC is an African indigenous energy company operating in the upstream, midstream and downstream.[1]

Oando PLC
Public
Traded asNSE: OANDO
JSE: OAO
IndustryOil and Gas
Founded1956
(ESSO)
HeadquartersVictoria Island, Lagos, Nigeria.
Area served
West Africa
Key people
Adewale Tinubu (GCE)
Omamofe Boyo (DGCE)
ProductsCrude oil

Natural gas
NGL
Revenue ₦ 418.2M (2019-Q3)
₦ 13.2 Billion (2019-Q3)
Number of employees
300
SubsidiariesOando Energy Resources

Oando Trading
Websitewww.oandoplc.com

With a primary listing on the Nigerian Stock Exchange, Oando is the first African company to have a cross-border inward listing on the Johannesburg Stock Exchange.[2]

In 2014, it concluded the acquisition of ConocoPhillips' Nigerian business through its upstream subsidiary, Oando Energy Resources, making it the country's largest indigenous oil and gas producer at the time.[3]

In July 2016, Oando entered into a tri-partite agreement with the Vitol Group, an independent trader of energy commodities and Helios Investment Partner, an Africa-focused private investment firm to form OVH (formerly known as Oando Downstream). The new company, (with its name formed from the initials of Oando, Vitol Group and Helios) is one of Nigeria's biggest suppliers and distributors of refined petroleum products.[4]

In September 2016, Oando announced the execution of a definitive agreement with a vehicle owned by funds advised by Helios Investment Partners LLP ("Helios"), a premier Africa-focused private investment firm, to acquire 49% of the voting rights in Oando's midstream business subsidiary, Oando Gas and Power Limited.

Oando is Nigeria's largest indigenous oil and gas company with a production output of 43,000 barrels (6,800 cubic metres) per day of oil equivalent, enterprise value of N520 billion and market capitalisation value of N115.1 billion.

History

Oando's earliest roots can be traced to the formation of Esso Africa in 1956. Esso Africa was a downstream marketing company, a subsidiary of the Exxon Corporation of USA. To increase availability of petroleum products in the hinterland,[5] 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.[6]


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.[7]


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 cubic feet per day (2.8 million cubic metres per day) at standard pressure of natural gas and will deliver an initial 22 million cu ft/d (620 thousand m3/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.


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.[8]


In 2014, Oando divested the 128 km Eastern Horizon Gas Company (EHGC) franchise in a $250 Million transaction with Seven Energy.[9]


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.[10]


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$461 million in Oando's Downstream business.[11]


In 2016, Oando PLC completes strategic US$115.8 million gas and power agreement with Helios. Oando PLC completes sale of Akute IPP.


In April 2018, the Securities and Exchange Commission (Nigeria) gave the directive for Oando PLC's shares to resume trading on the Nigerian Stock Exchange after placing the company's shares on suspension in October 2017 in order to execute a forensic audit.[12]


On May 31, 2019, the Securities and Exchange Commission (Nigeria) issued a "Press Release on Investigation of Oando Plc" notifying the public of the conclusion of the commission's investigations of allegations against Oando. The Commission ordered the resignation of board members implicated and barred "...the Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO) of Oando Plc from being directors of public companies for a period of five (5) years".[13]


On Monday June 3, 2019 the Federal High Court of Lagos under presiding Judge C M A Olatoregun granted Oando PLC's Group Chief Executive, Adewale Tinubu, and Deputy Group Chief Executive, Omamofe Boyo, an injunction restraining the Securities and Exchange Commission from executing sanctions, pending the hearing and determination of the applicant's motion for interlocutory injunction.

On September 4, Oando announced that the NNPC/NAOC/OANDO Joint Venture made Significant Gas & Condensates Discovery Onshore Niger Delta find in the deeper sequences of the Obiafu-Obrikom fields, in OML61, onshore Niger Delta.


On December 13, Oando announced the successful signing of two gas supply agreements with Nigeria Liquefied Natural Gas Ltd (NLNG) for the renewal of gas supply for the existing Trains 1-3 for a term of 10 years and for gas supply for the impending Train 7 for a term of 20 years.

Overview

Exploration and Production: 2017 Average Net Production was 40,188 barrels (6,390 m3) per day of oil equivalent

Assets Portfolio: 14 Producing

Development & Exploration Assets:

  • 470.7 million bbl (74.8 million m3) of oil equivalent of 2P Reserves
  • 146.9 million bbl (23.4 million m3) of oil equivalent of 2C Resources

Trading: C 7% of Nigeria's Fuel Requirement is Supplied by Oando Trading

OVH Energy: > 320 Retail Outlets Operations in Nigeria, Ghana, Benin and Togo

Operating divisions

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)
  • Downstream: Oando Vitol and Helios (OVH Energy), Oando Trading

Board of directors

As of September 2017:

  • Chairman: HRM Oba M. A. Gbadebo
  • Group Chief Executive: Jubril Adewale Tinubu[14]
  • Deputy Group Chief Executive: Omamofe Boyo
  • Group Executive Director: Femi Adeyemo, Muntari Muhammad Zubairu, Ainojie 'Alex' Irune
  • Independent Non-Executive Director: Alphonsus Ikeme Osakwe, Ademola Akinrele SAN, Tanimu Yakubu, Alhaji Bukar Aji
  • Company Secretary: Ayotola Jagun

Strategic Assets
  • 14 licences for exploration, development and production of oil and gas concessions in Oando Energy Resources
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References
  1. "Oando sells shares in downstream sector for N54.9b". Retrieved 2018-08-05.
  2. "Oando list shares on JSE on November 25". Oando list shares on JSE on November 25. Retrieved 2018-08-05.
  3. "Oando Plc Signs Agreement to Acquire ConocoPhillips' Nigerian Affiliate". Oando Plc Signs Agreement to Acquire ConocoPhillips' Nigerian Affiliate. Retrieved 2018-08-05.
  4. "Subscribe to read". Financial Times. Retrieved 2018-08-05.
  5. Herman), Apter, Andrew H. (Andrew (2005). "The Pan-African nation : oil and the spectacle of culture in Nigeria". University of Chicago Press. p. 34. ISBN 9780226023564. OCLC 527696510.
  6. "Oando PLC - Mining companies in Africa". Mining Africa. Retrieved 2017-04-26.
  7. StocksWatch (2017-09-25). "Oando: How far can resilience, innovation and growth go? - Stocksng.com". Stocksng.com. Retrieved 2018-07-30.
  8. "Lagos inaugurates Alausa power project". Thisdaylive.com. Archived from the original on 21 October 2013. Retrieved 28 December 2016.
  9. "Oando completes profitable sale of EHGC Franchise". Businessdayonline.com. Archived from the original on 6 April 2014. Retrieved 28 December 2016.
  10. "ConocoPhillips completes sale of Nigeria business to Oando". Energymixreport.com. 30 July 2014. Retrieved 28 December 2016.
  11. "Helios Vitol linked firm takes n62bn stake in Oando downstream". Businessdayonline.co. Archived from the original on 5 July 2015. Retrieved 28 December 2016.
  12. "Nigerian Stock Exchange lifts suspension on Oando Plc shares". Nairametrics. 2018-04-11. Retrieved 2018-07-28.
  13. Media, R. V. O. (2019-05-31). "Press Release on Investigation of Oando Plc". The Securities and Exchange Commission, Nigeria. Retrieved 2020-03-11.
  14. Zaln Verjee (30 November 2010). "Wale Tinubu: Africa is 'most interesting frontier' market right now". Cnn.com. Retrieved 28 December 2016.
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