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Tag: Oando

  • Our interest in Port Harcourt Refinery, by Oando

    Our interest in Port Harcourt Refinery, by Oando

    Oando Plc Group Chief Executive Officer Mr. Wale Tinubu yesterday clarified the conglomerate’s role in the Port Harcourt refinery.

    The Senate is querying the contract to rehabilitate the  refinery awarded to Eni/Agip in partnership with Oando.

    The lawmakers said the contract did not follow due process. It mandated a panel to probe the deal.

    Mr. Tinubu, who appeared before the Senate Joint Committee on Petroleum Resources chaired by Senator Kabir Marafa yesterday, described Oando’s involvement in the contract as a patriotic act.

    According to him, the firm is supporting the government to make the nation self-sufficient in petroleum products production and to end fuel importation and subsidy.

    He said: “I must explicitly state that no mandate for the concession, sale, equity transfer or privatisation of the Port Harcourt refinery or any of the nation’s refineries has been signed with Oando. As a crude exporter and supplier of refined products to the country, it is intuitive and patriotic for us to be interested in the refurbishment and upgrade of the refineries.

    “Our proposed participation as a local partner in this effort is an opportunity to drive the country forward and accelerate the process to see products security realised in this dispensation. We share the vision of the Nigerian government to become a petroleum products self-sufficient country in the short to medium term, and ultimately be a net exporter.

    “The Port Harcourt refinery remains a national asset, under the full control of the NNPC as far as we are aware.”

    The Senate initiated the hearing following reports which indicated that the Port Harcourt refinery was due to be sold via a privatisation or concession with Oando and Eni as the preferred consortium.

    However, initial findings from the Senate ad hoc committee showed that the NNPC is still at a preliminary stage of information gathering regarding the proposed rehabilitation and highlights from Aniebor Kragha, the NNPC’s Chief Operating Officer, Refineries, restating President Muhammadu Buhari’s directive on non-privatisation of the country’s refineries.

    The refineries have for long been in a state of disrepair. They  suffer from under-utilisation due to lack of funding and maintenance, among others. In addressing the problem, the government sought  strategic investors with refining experience and funding capacity to partner with local players to revamp the refineries. This gave birth to the Eni/Oando partnership after a meeting between Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu and ENI Chief Executive Officer, Claudio Descalzi.

    The outcome of the meeting led to ENI/Agip decision to partner with Oando to explore technical and funding options to support the government’s refinery rehabilitation efforts.

    With the refinery privatisation scheme proven untrue, the Senate has been widely applauded for its oversight of the NNPC, reinforcing the long-running mandate of the Buhari administration regarding transparency and accountability by all arms of government and within the private sector. The hearing is also a testament to the government’s  effort to develop an  enabling oil and gas landscape within the downstream sector to tackle capital flight.

    “We acknowledge that Oando was quoted out of context and we hope that they understand that this committee was set up as a matter of oversight and in the interest of Nigerians because we represent Nigerians.  When the time comes, we will instruct the NNPC to carry out this rehabilitation process in the most transparent manner. We advise Oando as a responsible company and good corporate citizen to guard its future statements in public, but applaud the fact that the minute they were misquoted by the media, they put out a statement to correct the facts,” said Senator Marfa.

  • Senate probes concession of Port Harcourt refinery to Agip, Oando plc

    Senate probes concession of Port Harcourt refinery to Agip, Oando plc

    …Asks petroleum ministry to suspend all transactions

     

    The Senate Tuesday resolved to investigate the planned concession of the Port Harcourt Refinery to Agip and Oando plc by the Ministry of Petroleum Resources.

    The upper chamber also asked the Ministry of Petroleum Resources to stop all processes and transactions regarding the concession pending the conclusion and submission of the report of its ad-hoc committee set up to probe the deal.

    The resolution followed the adoption of a motion entitled “Non transparent transaction relating to the planned concession of the Port Harcourt Refinery to Agip and Oando by the Ministry of Petroleum Resources,” sponsored by Senator Sabo Mohammed (Jigawa South).

    Mohammed in his lead debate expressed worry about alleged non-transparent transactions of the planned concession of the Port Harcourt Refinery to Agip and Oando by the Ministry of Petroleum Resources.

    The lawmaker said that he is aware that the Federal Government recently entered into an agreement with Nigerian Agip oil company, a subsidiary of ENI, an Italian oil giant to construct a $15 billion refinery in the Niger Delta region, a deal which also includes investment by Agip in a power plant with the Italian company assisting Nigeria in repairs of the Port Harcourt Refinery.

    The Minister of State for Petroleum Resources, Ibe Kachukwu, he said informed that the agreement was part of a broader Federal Government plan to increase capacity for local production and consumption of petroleum products with the aim of ending fuel importation in the country by 2019.

    He noted that while the resolve by the Federal Government to increase local refining capacity is laudable and should be applauded by all Nigerians, the observance of corporate governance principles and the country’s extant laws must be followed to the latter.

    Mohammed said that he is concerned that it is not yet clear if the new arrangement is a concession agreement or an agreement to build a new refinery.

    He noted that the confusion became obvious following the disclosure on May 11, 2017 by the Chief Executive Officer of Oando plc on the floor of the Nigeria Stock Exchange that the group had received approval of the Federal Government to repair, operate and maintain the Port Harcourt Refinery with their partner Agip.

    He said that the development would have been wonderful because it would mean an end to importation of refined products by the year 2020, “but many questions are begging for answers, such as it it Agip/ENI or Oando plc that is taking over Port Harcourt Refinery?

    The lawmaker also wanted to know whether there was observance of the privatization law as regards due diligence, selection from preferred bidders before ceding the Port Harcourt Refinery to Agip/Oando.

    Mohammed said that the Senate should be concerned that the planned concession of the Port Harcourt Refinery to Agip/ ENI in partnership with Oando plc without recourse to due process is illegal and a clear attempt at ridiculing Nigerians and would definitely create a big hole that would be hard to fill in the anti-corruption crusade of the present administration.

    He said that he is aware that in such transaction, “the best practice is to select partners through open and competitive bids.

    He insisted that any exclusive arrangement that does not follow due process, one hatched in the dark without the knowledge and participation of relevant stakeholders tend to lead to sub-optional outcome for the seller, in this case the Federal Government.

    He lamented that major stakeholders such as BPE that was empowered by law to conduct such exercise and labour unions are not aware of the deal that is supposed to be signed officially in July this year.

    He said that the Senate should be concerned that since Agip has no technical record/history in the Port Harcourt Refinery that was built by a Japanese firm, “one would have expected the concerned authority to look at the Warri Refinery that was built by Agip where they have technical record.

    Mohammed said that he is saddened that on assumption of office as the Group Managing Director of the NNPC, Kachukwu declared that by the end of 2015, the Port Harcourt, Warrit and Kaduna refineries would be working a 90 per cent capacity, thus reducing  importation and the subsidy controversies.

    He said that it is sad that “up till now in 2017, the refineries are yet to be fixed and cannot even produce at 50 per cent not to mention 90 per cent.”

    Some senators who spoke warned that the Port Harcourt refinery must not be allowed to go the way of Power Holding Company of Nigeria (PHCN) and other privatized organizations in the country.

    Senate President, Abubakar Bukola Saraki, raised a seven-man team to investigate the planned concession.

    Senator Abubakar Kyari (Borno North) is named chairman of committee. Other  members of the committee included Mathew Urhoghide, Duro Faseye, Benjamin Uwajumogu, Sabo Mohammed, Dino Melaye, Aliyu Wamakko.

     

  • Oando to take over Port Harcourt Refinery

    Oando to take over Port Harcourt Refinery

    •Mulls N40b capital raising

    The Federal Government has entered into a Memorandum of Understanding (MoU) with Nigeria’s largest indigenous energy group, Oando Plc to manage the Port Harcourt Refinery under a repair, operate and mainteain (ROM) arrangement.

    Chief executive officer, Oando Plc, Mr. Wale Tinubu at a presentation on the underlying facts of the group’s operations at the Nigerian Stock Exchange (NSE) yesterday in Lagos, said the group has received approval of the government to oversee the Port Harcourt Refinery.

    “We also got approval from the President to repair, operate and maintain the Port-Harcourt refinery together with our partner Agip. We plan to increase the refinery capacity from 30 per cent to a 100 per cent, subsequently to 120 per cent,” Tinubu said.

    He said the parties to the transaction were finalising the details of the arrangement that will help to enhance the efficiency of refinery.

    He noted that the group has deleveraged its balance sheet through the divestment of its upstream services company, Oando Energy Services and embarked on the expansion of its retail and gas footprint through a strategic partnership with Helios Investment Partners and Vitol Group to recapitalise its downstream business for $210 million and the $115.8 equity buy-in of its Gas and Power business by Helios Investment Partners.

    He said the company was considering raising some N40 billion in new capital.

    Tinubu said the first quarter earnings of the group underscore its proactive decision to focus on its dollar denominated export businesses.

    “Our resilience is evident in our capacity to grow via a diversified model, and as we continue to chart our deliberate path in this challenging business environment, we look forward to better performance in the quarters to come,” Tinubu said.

    Oando doubled its turnover in the first quarter of this year as the indigenous energy group continued to reap from its strategic focus on assets optimisation and deleverage.

    Key extracts of the three-month report for the period ended March 31, 2017  showed that Oando Group grew its top-line by 116 per cent to N138.27 billion in first quarter 2017 compared with N63.9 billion recorded in comparable period of 2016. Gross profit also increased by 53 per cent from N8.7 billion in first quarter 2016 to N13.4 billion in first quarter 2017. The company recovered from a pre-tax loss of N461 million in first quarter 2016 with a pre-tax profit of N494 million in 2017. The company also reduced its net indebtedness by 29 per cent from N316.6 billion in first quarter 2016 to N225.9 billion in first quarter 2017.

  • Oando: How we plan to integrate 60000 out-of-school children

    Oando Foundation has reiterated its commitment to ensuring 60,000 of the 10.5 million out-of-school children in Nigeria, are integrated back into the school system by 2018.

    Already, the foundation said it had attained 16,000 of the said target in a scheme it commenced last year, it is, nonetheless, optimistic that it would have substantially achieved its objective by the time the scheme will be rounded off.

    Head, Corporate Communications OANDO Plc, Alero Balogun, announced this at the firm’s corporate head office on Ajose Adeogun, Victoria Island.

    Balogun said the foundation’s inspiration towards the initiative is derived from the fact that Nigeria has 10.5 of the 38 million out-of-school children globally, which is the highest in the world based on UNESCO’s statistics.To further worsen the scenario, the country also could not attain UNESCO EFA Goal by 2015.

    “When we started this thing last year, we didn’t pretend that the figure of out-of-school children in Nigeria alone is 10.5 million.  For us however, it was how to get them back into the school. I said earlier that about 2000 children came back to a particular school in Northern Nigeria because the school feeding programme started there. So the bottom line is, children would come back once you start the school feeding programme, but you have to make concerted efforts for them to remain and also monitor and document, and this will even help the government to profile the 16000 children.”

    According to her, the foundation, which began in 1991 as a corporate social responsibility arm of Oando Plc, focuses ICT, Early Childhood Care Education, capacity building of teachers and scholarships, as well as special attention for girls in northern Nigeria, among others.

    She said the foundation already has strong presence in 23 states, adding that the choice of which state to concentrate its energy on is largely dependent on poor performances of WASSCE in such state, and other needs such as gaps in infrastructural human capacity development, ICT, availability of good toilet, and portable water among other things.

    Already, 13000 trained teachers nationwide have undergone training under the foundation’s human capacity development scheme.

    To ensure teachers under the exercise are fully available while the exercise lasts, she said the foundation first seeks the state government’s nod that those involved are not transferred from their duty post for three years.

    To ensure project integration, Balogun added that the foundation train and worked with school management based Committee (SMBC) who according to her, ensure they prod government to constantly provide budget for maintaining projects that the foundation has already completed and handed over.

    According to her, the foundation also bore the brunt of recession. Nonetheless   she said Oando Pls has continued to ensure consistent funding despite the harsh economic climate. According to her, the foundation engaged in some cost-cutting measure without compromising standard.

    “When we started, contractors were doing the work; but now it’s the communities that build and roof the houses, and it’s easier to get the SMBC to say the school can be built for N4 million for a project that could have cost about N40 million before. So in the end we get value for money.”

    Programme Coordinator, Oando Foundation Tonia Uduimoh, said the foundation, ensures quality by involving SUBEB of the states.

    “We also ensure quality by engaging state SUBEB to look at the quality of work done. The board gets their engineers from the work department to appraise the project because we do not want to compromise standard even though the projects are carried out at lower price,” she said.

    After carrying out needs assessment to determine where the gaps are, Uduimoh said the Foundation always complements each of its programme component with strict monitoring so as to track progress.

    “Let’s say we organise a teacher training, following the needs assessment to determine where the gaps are and design the trainings that will serve those needs, there are levels of monitoring and evaluation officers who ensure the training that have been received, results into knowledge transfer to the children. It helps track improvement year on year. Across all platforms, the totality of our work is to improve learning outcomes in schools,” she added.

  • NSE market capitalization grows by N117 bn in one day

    The nation’s equity market on Tuesday maintained a bullish trend for the eighth consecutive day with the indices appreciating by 1.28 per cent and the volume by 101.48 per cent.

    The News Agency of Nigeria (NAN) reports that the market capitalization increased by N117 billion or 1.28 per cent to close at N9.249 trillion against N9.132 trillion on Monday.

    Also, the All-Share Index which opened at 26,418.33 rose by 337.88 points or 1.28 per cent to close at 26,756.21 due to huge gains posted by some highly capitalised stocks.

    A breakdown of the price movement chart indicated that Dangote Cement led the gainers’ table, gaining N2.50 to close at N162 per share.

    Nigerian Breweries followed with a gain of N2 to close at N132 and Oando increased by 80k to close at N8.69 per share.

    Okomuoil gained 72k to close at N48.52, while PZ Industries appreciated by 70k to close at N15.70 per share.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. , attributed the growth to investors and traders renewed confidence to impressive earnings of first quarter of 2017 released by some companies.

    Omordion stated that the current uptrend was the longest streak since the beginning of the year.

    He added that investors were taking advantage of low valuation of equities to reposition and increase their stake in the market.

    Omordion said that the Central Bank of Nigeria (CBN) new foreign exchange policy contributed to the market trend.

    On the other hand, Total topped the losers’ chart, dropping by N6 to close at N249 per share.

    7UP Bottling Company trailed with a loss of N1.89 to close at N102 and Lafarge Africa dipped N1.10 to close at N48.50 per share.

    Dangote Sugar declined by 24k to close at N6.46, while Presco shed 10k to close at N46.90 per share.

    NAN also reports that FCMB Group drove the activity chart, accounting for 243.86 million shares valued at N239.40 million.

    Zenith International Bank followed with 52.29 million shares worth N856.16 million, while United Bank for Africa traded 42.53 million shares valued at N274.51 million.

    Diamond Bank sold 33.94 million shares worth N29.02 million and FBN Holdings exchanged 22.81 million shares valued at N81.35 million.

    In all, a total of 539.23 million shares worth N2.82 billion were transacted by investors in 4,519 deals, representing an increase of 101.48 per cent.

    This was in contrast with a turnover of 267.64 million valued at N3.26 billion traded in 3,907 deals.

     

  • Oando posts N1.7b profit

    Oando posts N1.7b profit

    Oando Plc, yesterday, declared N1.7billion Profit After Tax (PAT) for the first quarter of this year, just as its turnover grew by 116 per cent to N138.4 billion and gross profit by 53 per cent to N13.4 billion.

    The feat, was attributed to factors such as restructuring of operation of the firm, reduction in its net debt, surge in its downstream and upstream activities, among others.

    The company, in a statement, explained that its subsidiaries have delivered greatly in every facet of their operation.

    Its Group Chief Executive, Mr Wale Tinubu, said the company has reduced its net debt by 29 per cent from N225.9 billion in 2017 to N316.6billion in 2016.

    Tinubu said: ‘’In the upstream, production in the first quarter of 2017 decreased to 38, 125 barrels of crude oil per day (bpd), compared to 49, 365 (bpd) in first quarter of 2016. However, due to decreased production expenses, Oando Energy Resources (OER) recorded a profit of N4.96billion in the first quarter of 2017, compared with a profit N815.5million in the comparative period.

    ‘’In the midstream, following partial divestment of Oando Gas and Power (OGP) to Helios Investment Partners, we successfully concluded the sale of Alausa Independent Power Plant (IPP) for a transaction price of N4.6 billion. In the downstream, our trading business through the Direct Sale &Direct Purchase (DSDP) and Offshore Processing Agreement(OPA) yielded N115.6 billion compared to N4.4billion in 2016.’’

    He said the firm has recorded growth in spite of continued security challenges, economic headwinds and a fluctuations in crude prices.

    He said Oando recorded a production shortfall in the upstream due to significant reductions in gas production and delivery caused by a ruptured Gas Transmission System (GTS-4) at Oil Mining Leases (OMLs) 60 to 63.

    He said in addition to the problem, the Trans Forcados pipeline has continued to suffer downtime, a development, which has resulted in fall in crude production in Ebeno field.

  • Oando posts N3.5b profit

    Oando posts N3.5b profit

    Oando Plc,  Nigeria’s largest indigenous energy group, recorded N3.5billion Profit After Tax (PAT) in its full year operation, ended 31 december, 2016.

    This was achived despite thecountry’s economic recession, continued volatility in global oil prices, reduced oil exports, suspension of projects and cuts to capital spending.

    The company successfully manoeuvred the cyclical nature of the sector by adapting quickly to the new reality of low oil prices and a depressed macro environment.

    Oando operated in 2016 with a reinvigorated strategy of growth, deleverage and profitability. The successful implementation of these initiatives is evident in the company’s financial year (FYE) 2016 results with a N3.5 billion profit-after-tax, representing a 107 per cent increase from the loss of FYE 2015.

    A review of the company’s results further show positive performance across all financial indices, turnover increased by 49 per cent to N569 billion from N382 billion in FYE 2015, while EBITDA increased by 51 per cent to N71.0 billion from N47.0 billion in FYE 2015, boosting investors and shareholders confidence in the brand and its management team.

    Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “2016 saw the country plunge into a recession, the first in over two decades, besieged with liquidity constraints, devaluation of the naira and a slump in oil earnings due to low oil prices intensified by the insurgency in the Niger Delta. We were proactive in the timely execution of our restructuring program of Growth in our upstream division; Deleverage, through divestments resulting in a net debt reduction of $125 billion; and Profitability by focusing on dollar denominated earnings.

    In the first quarter of 2016 the company successfully restructured its existing obligations through a N108 billion Medium Term facility with a syndicate of 9 leading local banks. It also completed the full divestment of its Upstream Services business (Oando Energy Services) and the recapitalization of its downstream business to Helios Investment Partners, a premier Africa-focused private investment firm and the Vitol Group, the world’s largest independent trader of energy commodities to the tune of $210 million. The recapitalization of Oando’s downstream operations represents the largest inflow of foreign capital in a single transaction in the oil and gas sector in 2016.  This strategic initiative is positioned to revolutionize Nigeria’s downstream sector and create one of Africa’s largest downstream operations.

     

     

     

    in revenue, compared to $16.2bn in 2015. Royal Dutch Shell recorded its worst annual profit for more than a decade, the company posted fourth-quarter earnings of $1.0 billion, compared to $1.8 billion for the same quarter in 2015.

     

     

     

     

    The company further declared full year 2016 earnings of $3.5 billion compared to $3.8 billion in FYE 2015. Seplat recorded a decline of 55% in revenue of $254 million compared to $570 million in FYE 2015 attributed to force majeure at its Forcados terminal. Likewise, Oando recorded a 20% decrease in total production to 15.9MMboe (average 43,503 boe/day) in FYE 2016 from 19.9MMboe (average 54,520 boe/day) in the same period of 2015. The company cited unrest in the Niger Delta for a reduction in their production output specifically sabotage activities at OMLs 60 to 63 and a force majeure on the Qua Iboe terminal resulting in losses estimated at 11,600bbl/d.

    “In the, Upstream we witnessed a decline in production but an increase in our 2P Reserves from 445mmboe in 2015 to 469mmboe.  We are hopeful that the FGN will establish a long term resolution to the conflict in the Niger Delta which will positively impact the oil and gas industry, consequently ramping up our daily production.  In the Midstream we concluded the partial divestment of Oando Gas and Power (OGP) to Helios Investment Partners to further expand our gas footprint, whilst in the Downstream our trading business continued to make in-roads in crude lifting” Tinubu said.

    Today, Oando has significantly reduced its net debt from N355.4 billion in 2015 to N230.6 billion, signalling a further reduction in the company’s debt overhang, a situation critiques have often considered detrimental to the Group.

    Amidst the terrain Oando recorded other operational milestones. In its upstream business, Oando Energy Resources, hedged approximately 46% of crude production – as at December 31, 2016, 9,590 bbls/day was hedged at $65/bbl (average) with expiry dates ranging from July 2017 to January 2019, and further upside on the condition of certain price targets being met. The company increased its 2P Reserves by 5% from 445mmboe in 2015 to 469.3mmboe due to reservoir performance and committed to the sale of its interests in OMLs 125 and 134 to the Operators for cash proceeds of $5.5m and assumption of $88.5m in cash call liabilities due to the joint ventures.

    In its Midstream business, Oando Gas and Power concluded the sale of Akute Independent Power Plant for a transactional value of N4.6bn and is in the completion phase of its 8.3km Greater Lagos 4 pipeline project culminating 3 rover crossings and the deployment of advanced technology extending OGP’s gas footprint from the Ijora area of Lagos State through to Marina Business District; enabling improved utilisation of its 100mmcf/d per day gas distribution capacity.

    In Downstream, Oando Trading posted revenues of $1.4 billion from newly created revenue streams and a commendable 4 year high for the international trading business.

    Speaking on outlook for 2017, Tinubu said: “As we enter a new phase in our business evolution we are optimistic about 2017 and look forward to even more successes having braved the challenges of 2016.”

     

  • Oando Gas & Power plans to raise $1b for projects

    Oando Gas & Power plans to raise $1b for projects

    Oando Gas and Power Limited, a subsidiary of Oando plans to raise $1billion to implement some short to long term projects it has lined up, The Nation has learnt.

    The cash may not come from local financial institutions. According to the Managing Director of the company, Mr. Bolaji Osunsanya, the money will be used for several projects lined up for execution by the firm.

    Apart from the construction of a 20 million standard cubic feet per day (mscf/d) mini LNG facility, the firm is planning in partnership with the Nigerian Gas Company, it plans to expand its gas projects to other parts of Africa starting with Ghana, Gambia and Senegal and enter into bigger power projects of about 50megawatts (Mw), among others.

    Osunsanya noted that the funds would be raised in partnership with Helios – a private equity fund, and  OGP, the major partner. Both firms would embark on road shows for the fund raising, he added.

    He said: “The $1 billion we are talking about is what we have come to think is the requirement for the projects we scoped and it is our own equity requirement in those projects. We will need more than a billion dollars but as you know we raised about $400 million as OGP in the projects that we have done. A lot of project financing we do, we go banks and they give us money. The scheme will still be similar. We need to be able to reach international funds partner with us on this project.’’

    He continued: “The fact that Helios is there means we will be able to reach international financial institutions. That is the strategic side of the deal with a private equity fund, to prepare ourselves for capital risk. A lot of it will not be local. We have taken all we can take locally and know now the capital raise will be foreign. In May we are going on road show with Helios for the project schedule.

    “I think it is important for us to increase the volume of gas that passes through our system. We intend to raise it to 70mscfd coming from as low as 47mscfd in 2016. So we are looking for 25 per cent growth in the coming year. We will complete the two projects we have on hand in the Greater Lagos IV, and the Central Horizon in Port Harcourt.

    “We have continued to grow our business in Port Harcourt with the Trans Amadi grid, we are expanding that now with a 9km addition that will take us to the port area. Our primary target there will be the BUA sugar refinery, which will be a big consumer of gas. But more importantly, we are trying to expand the Rivers State grid not just to Trans Amadi but to the entire emergent industrial clusters in Rivers State. It will see us go to Chioba, Obagua and all the developing parts of Port Harcourt. The idea is that the grid in Port Harcourt will be akin to the grid in Lagos and it will be our intention to continue to do this in all the emergent cities in Nigeria.”

  • Oando Gas & Power divests interest in captive power plants

    Oando Gas & Power divests interest in captive power plants

    Oando Gas and Power (OGP), a subsidiary of Oando Plc, has divested its interests in captive power plants and focused on gas infrastructure expansion.

    Speaking on the sideline of the just-concluded Nigeria Oil and Gas Conference and Exhibition in Abuja, the Managing Director, Mr. Bolaji Osunsanya, said: “As portfolio developers, we’ve divested from our captive power plants and aggressively focused on the expansion of our Gaslink franchise, which serves over 160 industrial and commercial customers across the Greater Lagos Area.

    “Our Joint Venture subsidiary with the Rivers State government, Central Horizon Gas Company, is poised to complete an additional 9km of pipeline infrastructure within the Trans-Amadi area by the end of first quarter of this year.

    “Also, our Compressed Natural Gas (CNG) entity, Gas Network Limited (GNL), which is our pioneering virtual pipeline initiative currently, delivers gas to customers within a 100km radius.”

    In the medium term, Osunsanya said the firm’s five critical flanks are to ensure gas supply security, develop virtual pipelines asset stable and gas processing infrastructure. In the long term, he noted that OGP expects long-term appropriate infrastructure financing, expansion of last mile distribution infrastructure with a particular focus on regional growth.

    The company, Osunsaya said, is set to take the final investment decision (FID) on its planned multi-million dollar 20 million standard cubic feet per day (mmscf/d) mini liquefied natural gas (LNG) plant to be located in Ajaokuta, Kogi State, before end of June.

    He said after taking the FID, construction of the facility would begin in the third quarter of the year. He said the essence of building virtual in the Ajaokuta mini-LNG is to create other ways of bringing natural gas to industrial and commercial concerns because pipeline vandalism is taking a toll on their operations.

    OGP is developing LNG facility via its newly-created Transit Gas Nigeria Limited (TGNL) subsidiary in partnership with Nigerian Gas Company (NGC).

    The facility is aimed at meeting the gas supply requirements for captive power plants, embedded generation, and industrial clusters in the Northern region, as well as stranded customers in the South.

    Osunsanya also said the firm has developed over 260km of gas pipeline distribution network, and pioneered the development of gas infrastructure and solutions across southern Nigeria, adding that the company has divested from its captive power plants.

    “OGP targets to increase gas sales levels from an average volume of 47mmscfd in 2016 to about 70mmscfd in the year. It also expects to complete and inaugurate projects, such as Greater Lagos 4 (GL4), and Central Horizon Gas Company (CHGC) expansion as well as aggressive regional expansion opportunities into Benin, Togo, Ghana, and Senegal,” he said.

  • NGC: Oando to take FID on 20mmscf/d mini-LNG plant

    NGC: Oando to take FID on 20mmscf/d mini-LNG plant

    Oando Gas and Power (OGP) is set to take the final investment decision (FID) on its planned multi-million $20 million standard cubic feet per day (mmscf/d) mini-liquefied natural gas (LNG) plant to be located in Ajaokuta, Kogi State, before end of June.
    Its Managing Director, Mr. Bolaji Osunsanya, said after taking the FID, construction of the facility would begin in the third quarter of the year.
    He told The Nation in Abuja that the essence of building virtual in the Ajaokuta mini-LNG is to create other ways of bring natural gas to industrial and commercial concerns because pipeline vandalism is taking a toll on their operations.
    OGP is developing LNG facility via its newly-created Transit Gas Nigeria Limited (TGNL) subsidiary in partnership with Nigerian Gas Company (NGC). The facility aims at meeting the gas supply requirements for captive power plants, embedded generation, and industrial clusters in the Northern region, as well as stranded customers in the South.
    The OGP chief also said the firm has developed over 260km of gas pipeline distribution network, and pioneered the development of gas infrastructure and solutions across southern Nigeria, adding that the company has divested from its captive power plants.
    According to him, OGP targets to increase gas sales levels from an average volume of 47mmscfd in 2016 to about 70mmscfd in the year. It also expects to complete and commission projects such as Greater Lagos 4 (GL4), and Central Horizon Gas Company (CHGC) expansion as well as aggressive regional expansion opportunities into Benin, Togo, Ghana, and Senegal.
    He said: “As portfolio developers, we’ve divested from our captive power plants and aggressively focused on the expansion of our Gaslink franchise which serves over 160 industrial and commercial customers across the Greater Lagos area.
    “Our Joint Venture subsidiary with the Rivers State government, Central Horizon Gas Company, is poised to complete an additional 9km of pipeline infrastructure within the Trans-Amadi area by the end of first quarter of this year.
    “Also, our Compressed Natural Gas (NGC) entity – Gas Network Limited, which is our pioneering virtual pipeline initiative currently, delivers gas to customers within a 100km radius.”
    In the medium term, Osunsanya said the firm’s five critical flanks are to ensure gas supply security, develop virtual pipelines asset stable and gas processing infrastructure. In the long term, he noted that OGP expects long term appropriate infrastructure financing, expansion of last mile distribution infrastructure with a particular focus on regional growth.
    Last December, OGP completed the divestment of 49 per cent stakes Oando’s midstream business subsidiary, Oando Gas and Power Limited to Glover Gas & Power B.V., a special purpose vehicle owned by Helios Investment Partners at a cost of $115.8 million.