Oando

Oando PLC
Public
Traded as NSE: OANDO
JSE: OAO
Industry Oil and gasoline
Mining
Founded 1956
(ESSO)
Headquarters Victoria Island, Lagos, Nigeria.
Area served
 West Africa
Key people
 Adewale Tinubu
(CEO)
Products Oil
Petroleum
Natural gas
Petrochemical
Fuel
Lubricant
Revenue Increase US$ 1.9 billion (2010)
Increase $ 59.6 million (Q3, 2010)
Total equity Increase $ 1.0 billion (2010)
Number of employees
 1,000
Slogan The future is here
Website www.oandoplc.com
Zenon House, where Oando's corporate Headquarters is located

Oando is a Pan- African multinational energy corporation. Headquartered in Lagos, Nigeria, and active in various African countries, it is engaged in every aspect of the energy value chain, including Petroleum marketing, exploration and production; refining, and power generation. Oando is Nigeria's largest non-government owned company in the energy industry. It is the first Nigerian company to achieve a dual listing on both the Nigerian and Johannesburg Stock Exchanges, and Nigeria’s largest oil company with a market capitalization in the region of $1billion.

History

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 U.S.A. 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.

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.

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 blocs. 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 Pipleine, 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 100million 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 Honourable Minister of Petroleum. 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 ~ $1.79billion plus customary adjustments.

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.

Overview

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. Oando Supply and Trading 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.

Oando has been a beacon of Nigeria's local content law which seeks to increase indigenous participation in the oil and gas industry.

Operating divisions

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

  • Upstream
  • Midstream
  • Downstream

Upstream

  • Oando Exploration & Production Limited (OEPL)- First indigenous oil and gas company with participatory interest in producing deep offshore assets
  • Oando Energy Services (OES) - Nigeria's largest indigenous rig services provider
  • Oando Energy Resources (OER) - Oando Energy Resources (OER) an Affiliate company of Oando PLC is the new trading name of Exile Resources Inc (Exile) post the acquisition of certain shareholding interests in Oando PLC’’s upstream subsidiary in respect of Oil Mining Leases (“OMLs”) and Oil Prospecting Licenses (“OPLs”).

Midstream

  • Oando Gas & Power (OG&P) - Building Sub-Saharan Africa's Largest Gas Pipeline Grid . Developing Independent Power Plants in Nigeria
  • Akute Power Limited
  • Gaslink Nigeria Limited
  • Alausa Power Limited

Downstream

  • Oando Marketing PLC (Nigeria's leading oil retailer)
  • Oando Supply and Trading (Africa's Largest Independent and Privately Owned Oil Trading Company.)
  • Oando Terminaling (Propelling development of infrastructure to drive efficiency across the downstream)

Corporate affairs

The current Chairman of the Board is HRM Oba M. A. Gbadebo, and the CEO is Adewale Tinubu. The Deputy CEO of the group is Mr. Omamofe Boyo. Oando employs a work force of over 1,000 people.

Board of directors

As of October 2013:

  • HRM Oba M. A. Gbadebo(Chairman)
  • Jubril Adewale Tinubu (Group CEO)
  • Omamofe Boyo (Deputy Group CEO)
  • Bolaji Osunsanya
  • Femi Adeyemo
  • Ms Ammuna Lawan Ali, OON
  • Mr. Francesco Cuzzocrea
  • Chief Sena Anthony
  • Mr. Oghogho Akpata
  • Ms Nana Afoah Appiah-Korang

Strategic Assets

Corporate Social Responsibility

Oando PLC has a thriving Corporate Social Responsibility program. Its major programmes are geared towards youth, social and economic empowerment, with a special focus on improving the quality of basic education in Nigeria. The company has innovated numerous avenues for giving back to the society, they are; Adopt-A-School Programme, Sponsorships, Scholarships, and Community Development Projects. Through its Adopt-A-School programme, the company has adopted 27 government-owned primary schools in its host communities. These schools have been renovated and provided with water and appropriate sanitation facilities.

References

External links