The Nation Newspaper

Tag: Oando

  • Oando invests $400m in lubricants production

    Oando invests $400m in lubricants production

    Oando Marketing Plc has  invested  $400million to produce a wide range of lubricants. It has also introduced a new lubricant, called Oleum SYN into the automobile market.

    Speaking at the unveiling of the synthetic lubricant, Oleum SYN, in Lagos, its Chief Operating Officer, Mrs. Williams Olaposi, said the product was introduced to meet the needs of users of top-of-the-range cars.

    Oando’s decision to produce synthetic lubricant, she said, was informed by the need to satisfy various layers or users of automobiles.

    She said: “The firm believes in meeting the yearnings of various users of automobiles in Nigeria. For years, the country has been using fairly used cars otherwise known as Tokunbo, and Oando has lubricants for people driving such cars.

    “In recent times, there has been a paradigm shift from the use of Tokunbo to new cars. Nigerians are now driving new and highly sophisticated vehicles, and the only way to satisfy people in that segment was to produce synthetic lubricant.”

    She said every litre of Oleum SYN comprises top quality base oil and additives, noting that the product has been certified internationally.

    Olaposi said Oando conducted several years of research before coming out with

  • Buhari hails NNPC, Agip, Oando

    Buhari hails NNPC, Agip, Oando

    President Muhammadu Buhari has praised the Nigeria Agip Oil Company (NAOC)  and its partners, Nigerian National Petroleum Corporation (NNPC) and Oando, for the Green River Project (GRP) which has covered over 120 rural communities and empowered over 35,000 farmers. GRP is the firm’s agric intervention project.

    In an audio-visual message to an agricultural exhibition and Farmers’ Day, organised by NAOC, Buhari explained that the company’s GRP had become more important “now that oil has ceased to be the nation’s cash cow. We have no option, but to turn to agriculture. Diversification of our economy is no longer something to pay lip service to,” he said.

    He unfolded the government’s agricultural development programme aimed at attaining self-sufficiency in food production and yearly export of 10 million tonnes of grains and processed food by 2019  to farmers from Bayelsa, Delta, Imo and Rivers states during the celebration.

    The return of marketing corporations is to serve as the main platform of the government’s programme which is also expected to lead to the development of 740,000 market-oriented young agricultural producers from among unemployed youths.

    In the speech delivered on his behalf by the Permanent Secretary, Federal Ministry of Agriculture, Mr Sonny Echono, the President said government’s strategies include: establishment of Youth Employment in Agriculture Programme (YEAP), which will benefit 20,000 school leavers and rural youth leaders in each state of the federation and develop 18,500 university graduates into young agribusiness entrepreneur called “nagropreneurs” and Agricultural Equipment Hiring Enterprises (AEHEs) – a private sector led mechanisation programme which will inject a total of 6,000 units of tractors and implements, 15,000 power tillers, 20,000 planting and postharvest equipment to mechanise an estimated four million hectares of land nationwide.

    The Italian Ambassador to Nigeria, Mr. Fulvio Rustico  described the GRP of NAOC as a means to re-enforce a healthy relationship and cooperation between his country and Nigeria.

    The Chairman of NAOC, Mr. Ciro Antonio Pagano with his Vice, Massimo Insulla in their respective remarks spoke on the impact of GRPin the four stakeholder  states.

    They also spoke about the potential of the Project becoming a pivot for the development of the agric sector in Nigeria as it will serve as a major platform for knowledge sharing among farmers, academia, public extension services and agro allied industry.

  • Oando unveils new lubricants

    Oando unveils new lubricants

    Oando Marketing Plc has  spent  $400million to produce a wide range of lubricants. It also introduced a new lubricant for the automobile market.

    At the unveiling of the synthetic lubricant, Oleum SYN, in Lagos, its Chief Operating Officer, Mrs. Williams Olaposi, said the product was introduced to meet the needs of users of top-of-the-range cars.

    Oando’s decision to produce synthetic lubricant, she said, was informed by the need to satisfy various layers or users of automobiles.

    She said: “The firm believes in meeting the yearnings of various users of automobiles in Nigeria. For years, the country has been using fairly used cars otherwise known as Tokunbo, and Oando has lubricants for people driving such cars.

    “In recent times, there has been a paradigm shift from the use of Tokunbo to new cars. Nigerians are now driving new and highly sophisticated vehicles, and the only way to satisfy people in that segment was to produce synthetic lubricant.”

    She said every litre of Oleum SYN comprises top quality base oils and additives, noting that the product has been certified internationally.

    Olaposi said Oando conducted several years of research before coming out with the product, stressing that a lot of money was invested in the production of lubricants by the company.

    “A log of research was conducted by Oando Marketing  in order to produce a wide range of lubricants. We at Oando have invested in our plants in Apapa, Lagos and Kaduna. The two plants have a combined capacity of over 100 million litres.  So, if you talk about new bottles, adverts, research in terms of additives that we have used, over $400millon has been invested to ensure that Oando products come out in the best package one can think of,” she said.

  • Why marketers should support our $150m jetty, by Oando

    Why marketers should support our $150m jetty, by Oando

    To ease pressure on the Nigeria National petroleum Corporation (NNPC)-owned New oil Jetty (NOJ), marketers have been advised to patronise the $150 million jetty being built by Oando Plc.

    Oando Marketing Chief Operating Officer Mrs Olaposi Williams said congestion at NOJ would disappear on completion of the Jetty.

    Mrs. Williams  spoke with to The Nation on the sideline at the commissioning of Sapara Road in Apapa, Lagos constructed by Oando.

    She said the Oando Jetty, which is in Lagos, has about 30,000-40,000 tonnes capacity. It will serve oil marketing companies, NNPC and other companies operating in Lagos, she added. The jetty is located in the deep water at Marina, which would make it easier for bigger vessels to berth and further aid the growth of oil marketing companies.

    Mrs Williams said efforts were being made to partner with other oil firms to use the Oando Jetty in order  to decongest NOJ.

    She said: “The Oando Jetty has 30,000-40,000 tonnes capacity as against NOJ that has between 22,000 to 25,000 tonnes capacity. Also the jetty, which would be ready in the next few months, can accommodate four mother vessels. This means that more oil companies can take delivery of petroleum products at the Jetty without stress.

    “Collaboration is ongoing between Oando and other companies such as Mobil, MRS and others to use the Jetty. We are trying two major goals through Oando Jetty.”

    According to her, the use of Oando Jetty by Oando and others would help reduce congestion at NOJ, while at the same time help bring down the demurrage.

    Olaposi said the cost of demurrage paid by oil companies using jetty for their operation is very high, adding demurrage would come down when there is alternative to NOJ.

    She said there would be improvement in the operations of oil firms once demurrage cost is reduced.

    Olaposi said Oando would open more retail outlets across the country in order to improve the distribution of its white products.

    She said in the nearest future, the gridlock occasioned by the parking of trucks in Apapa, would be eliminated, adding that Oando would come out with sanctions for its drivers who park trucks on the road, thereby impeding the flow of vehicles.

    “Our Truck Marshaling Yard 11, which we commissioned and the Truck Marshaling Yard 1 that would be ready soon have standard operating procedures. One of the procedures is that any driver who does not have a business to do at the Yards would not be allow to park. This means that when a driver parks aimlessly and causes traffic, he would be arrested by the company,” she said.

  • Buhari hails NNPC, Agip, Oando on agri programme

    President Muhammadu Buhari has praised the Nigeria Agip Oil Company (NAOC)  and its partners, Nigerian National Petroleum Corporation (NNPC) and Oando, for the Green River Project (GRP) which has covered over 120 rural communities and empowered over 35,000 farmers. GRP is the firm’s agric intervention project.

    In an audio-visual message to an agricultural exhibition and Farmers’ Day, organised by NAOC, Buhari explained that the company’s GRP had become more important “now that oil has ceased to be the nation’s cash cow. We have no option, but to turn to agriculture. Diversification of our economy is no longer something to pay lip service to,” he said.

    He unfolded the government’s agricultural development programme aimed at attaining self-sufficiency in food production and yearly export of 10 million tonnes of grains and processed food by 2019  to farmers from Bayelsa, Delta, Imo and Rivers states during the celebration.

    The return of marketing corporations is to serve as the main platform of the government’s programme which is also expected to lead to the development of 740,000 market-oriented young agricultural producers from among unemployed youths.

    In the speech delivered on his behalf by the Permanent Secretary, Federal Ministry of Agriculture, Mr Sonny Echono, the President said government’s strategies include: establishment of Youth Employment in Agriculture Programme (YEAP), which will benefit 20,000 school leavers and rural youth leaders in each state of the federation and develop 18,500 university graduates into young agribusiness entrepreneur called “nagropreneurs” and Agricultural Equipment Hiring Enterprises (AEHEs) – a private sector led mechanisation programme which will inject a total of 6,000 units of tractors and implements, 15,000 power tillers, 20,000 planting and postharvest equipment to mechanise an estimated four million hectares of land nationwide.

    The Italian Ambassador to Nigeria, Mr. Fulvio Rustico  described the GRP of NAOC as a means to re-enforce a healthy relationship and cooperation between his country and Nigeria.

    The Chairman of NAOC, Mr. Ciro Antonio Pagano with his Vice, Massimo Insulla in their respective remarks spoke on the impact of GRPin the four stakeholder  states.

    They also spoke about the potential of the Project becoming a pivot for the development of the agric sector in Nigeria as it will serve as a major platform for knowledge sharing among farmers, academia, public extension services and agro allied industry.

  • ‘Why we acquired Oando downstream business’

    ‘Why we acquired Oando downstream business’

    Helios Investment Partners and the Vitol Group, the world’s largest independent oil trader, have opened up on why they acquired the downstream business of Nigeria’s Oando Plc.

    Justifying the need for the acquisition, in a statement released by the consortium, they said new downstream and retail business will be established as a standalone, independent company, led by a local management team.

    The assets, they stressed, will comprise over 400 service stations in Nigeria with supporting infrastructure, including 84,000 tonnes of storage and a newly built inbound logistics jetty as well as complementary businesses, chiefly LPG filling and distribution, lubricants and an interest in a supply and bulk distribution company in Ghana.

    It may be recalled that the two foreign firms had recently announced that they were coming together as a consortium, to acquire 60 per cent of the economic rights and 51 per cent of the voting rights in the West African downstream business of Oando Plc, an integrated oil and gas company headquartered in Nigeria, for a sum of US$276 million, subject to the receipt of regulatory approvals and customary purchase price adjustments, including working capital.

    Vitol Group has in past partnered with NNPC in the export of Nigerian crude and supplying products to Nigerian oil importers and marketers.

    Ian Taylor, President and CEO, Vitol said; “Vitol has a long history of working in Nigeria and is proud to have served our customers here over many years. This investment is a further reflection of our confidence in the Nigerian economy, and will be independent of the services we provide to our long standing Nigerian customers.  We are looking forward to building this new downstream business, alongside our many other business activities in Nigeria.”

    Tope Lawani, co-founder and Managing Partner of Helios Investment Partners, said; “This is a market leading downstream energy business with a strong brand and exciting growth potential. Given our successful partnership with Vitol to create Vivo Energy, a leading downstream business which distributes and markets Shell-branded fuels and lubricants in 16 countries across Africa, we are confident that our expertise and regional presence will support the management team in capitalising on its strong market position and the compelling growth opportunities in Nigeria.”

    According to Vitol, there are good opportunities to invest in Nigeria and this demonstrates growth and their belief and commitment to Nigeria and Africa.

    Its trading portfolio includes crude oil, oil products, LPG, LNG, natural gas, coal, electricity, agricultural products, metals and carbon emissions.

  • Oando downstream explains new structure

    Oando downstream explains new structure

    Oando Plc has said the ownership structure of the new Oando downstream businesses will be 49 per cent for Oando, 49 per cent for HV Investments and two per cent for Nigerian Helios affiliate.

    The Head, Corporate Communications, Oando Plc, Ainoije ‘Alex’ Irune said in a statement that it has become imperative to clarify the ownership structure of the strategic partnership between Oando, Vitol and Helios following varied reports on the ownership structure.

    He said: “Oando, an integrated oil and gas company headquartered in Nigeria, has 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.

    “The post-investment 100 per cent ownership structure is reflected in the voting rights below: Oando Plc will hold 49 per cent, HV Investments will hold 49 per cent, and a Nigerian Helios Affiliate will hold two per cent.

    “This unique partnership will allow for accelerated expansion and increased investment for Oando Downstream within the sector, whilst the organisation’s management structure will remain unchanged, and directors instituted to the Board to represent Vitol and Helios.

    “Yomi Awobokun will continue as Chief Executive Officer, Oando Downstream, and Oando Plc Group Chief Executive, Wale Tinubu, will maintain his position as Chairman of the Board.

    “This transaction is testament to Oando’s indigenous commitment to building the downstream sector. Furthermore, this tri-partied alliance is poised to bring investment to the sector and further expand Oando Downstream’s operations whilst assuring business continuity.”

  • Oando sells 60% downstream to HVI for $276m

    Oando sells 60% downstream to HVI for $276m

    Oando Plc has entered into an agreement with HV Investments II B.V. (HVI) to acquire its downstream businesses for about US$276 million — subject to regulatory approvals and customary purchase price adjustments, including working capital.

    Oando’s Head, Corporate Communications, Ainoije ‘Alex’ Irune, said HV Investments is a joint venture owned by a fund advised by Helios Investment Partners and the Vitol Group.

    For local content reasons, the voting rights structure is that HVI and Oando will each have 49 per cent while a Nigerian Helios Affiliate will two per cent voting rights.

    Oando downstream businesses consist of Oando Marketing Plc (OMP), a petroleum product retailing and distribution company with over 400 retail outlets and strategically located terminals in Nigeria, Ghana and Togo. OMP distributes premium motor spirit, automotive gas oil, dual-purpose kerosene, aviation turbine kerosene, low pour fuel oil, lubricating oils, greases, bitumen and liquefied petroleum gas. Key OMP subsidiaries that are part of the acquisition include Oando Ghana Limited, Oando Togo SA and Clean Cooking Fuel Investments Limited.

    Other downstream businesses include Oando Supply & Trading Limited, an indigenous trader of petroleum products in the sub-Saharan region, supplying and trading crude oil and refined petroleum products, Oando Trading Limited (Bermuda), an entity involved in the trading of crude oil and refined petroleum products in international markets, Apapa SPM Limited, the marina jetty and subsea pipeline system capable of berthing large vessels that will increase the delivery capacity and offloading efficiency of petroleum products into major petroleum marketers’ storage facilities at Apapa, Lagos and Ebony Oil & Gas Limited, the Ghanaian supply and trading entity with a provisional bulk distribution company licence supplying white products.

    The total consideration of US$461.3 million will be funded by a US$276.8 million cash contribution from HVI and US$184.5 million in preference shares issued to Oando Plc. At closing, HVI will own 60 per cent of the special purpose vehicle. Oando will hold a 40 per cent stake.

    Commenting on the deal, Group Chief Executive Officer, Oando Plc, Wale Tinubu, stated: “This transaction is an exciting development in downstream West Africa. By working with Vitol, a global energy and commodities company, and the largest independent trader of energy products, and Helios, a premier Africa-focused private investment firm, we have repositioned Oando Downstream for a new era of investment growth, profitability, and this venture holds unprecedented opportunities for the business. Importantly, this divestment also enables us to increase our focus on our upstream and midstream businesses. Even as proceeds of the sale will be applied almost entirely to reducing Oando’s leverage, we underscore the portfolio rationalisation achieved alongside the balance sheet optimisation.”

    During a mid-year teleconference with investors and analysts in July 2014 to announce the conclusion of Oando’s game-changing $1.56 million acquisition of ConocoPhillips Nigerian assets, Mr. Tinubu had hinted at the probability of a shift in Oando’s strategy to focus on the implementation of a three-pronged approach to reduce debt, diversify into the higher margin upstream, and an increase growth margin value for shareholders through an augmented production portfolio and cash flow.

    Analysts indicate that Oando Plc had decided against an outright sale of its downstream subsidiary, but entered into an agreement with HV Investments due to the strategic partnership, accelerated expansion and increased investment on offer. “This partial equity agreement presents a unique opportunity for a significant growth in the size and scale of our operations, while substantially strengthening our position in the downstream sector. Though we employ a multifaceted approach across the energy value chain, we have immense pride in our origins as a predominantly downstream company, and we had no reason to sell, as our brand deeply resonates with many in Africa and globally,” Tinubu said.

    The Oando group has primarily focused on the growth of its Nigerian-based assets portfolio in the last year, including viable opportunities that optimise its operations, delivery and upstream footprint, such as the ramp up of its production from 5,000 barrels of oil equivalent per day (boe/d) pre-acquisition of ConocoPhillips Nigeria to its present output of 53,100 boe/d.

  • Oando chief gets ‘Africa Executive of the Year’

    Oando chief gets ‘Africa Executive of the Year’

    Oando Plc Group’s Chief Executive Officer Wale Tinubu has  been honoured with the Africa Executive of the Year award at the third edition of the Oil & Gas Council’s 2015 Africa Assembly Award dinner, which was held at the InterContinental Le Grand, Paris, France.

    The award recognises the contribution of individuals in leadership positions and excellence in the African oil and gas industry.

    Tinubu was unanimously chosen as the “African Business Executive of the Year” in recognition of his pioneering leadership within Africa’s Oil & Gas sector.

    Under his direction, Oando has steadily increased its operational activities following its strategic and much-lauded landmark $1.56 billion acquisition of ConocoPhillips Nigeria, Creating Nigeria’ first indigenous major, thereby crystallising the emergence of local home-grown companies in the upstream sector.

    Tinubu, while accepting the award, said: “This accolade is testament to our collective organisational belief at Oando in the tenets of entrepreneurship, innovation  and perseverance. I am extremely humbled by this achievement, and it serves as further motivation to keep evolving, whilst creating opportunities, surpassing our milestones, and strengthening Africa’s active participation in the global marketplace.”

    The award is the second received by Tinubu this month. On June 6, he was recognised for his entrepreneurial achievements and inducted into the Ernst & Young’s World Entrepreneur of the Year Academy in Monte Carlo, Monaco.

  • Oando rewards distributors

    Oando Marketing Plc has rewarded its distributors for their outstanding performance. They were rewarded at Four Points by Sheraton, Lekki Peninsula, Lagos.

    The event with the theme “Lubes Distributors Award 2015/ strategic business review meeting” was attended by Oando’s  top lubricants distributors from across the country.

    A customer, Hamisu Dantiki, emerged the Best Distributor for the year. Mr. Aronu Ifeanyi, Ogbus Enterprise, and Alhaji Adeleke Lateef won in the “Aluminium Category” awards.

    The Chief Operating Officer, Oando Marketing Plc., Mrs Olaposi Williams, said the  event, which is in its  third year, was organised to appreciate lubricant distributors, and others to work harder.

    She appealed to distributors to promote the company’s products. “We have conducted research on the Oando lubricant to know how best to carry out our marketing. Based on feedbacks, we have been able to improve activities across board to promote the brand. Also, we are partnering with other industry stakeholders, including the Lady Mechanic Initiative which led to us supporting the 10th Anniversary of the initiative and inauguration of the Lady Mechanic Alumni programme,” she added.

    Dantiki said the award would boost the morale of the distributors as well as help in the growth of the company.