The Nation Newspaper

Tag: Oando

  • Oando commits to local content

    Oando commits to local content

    As the new owners of Nigeria Agip Oil Company (NAOC) Oando Energy Resources Nigeria Limited (OERNL) kick started operations in Bayelsa State on a promising note as the company made a public commitment to building strong relationships with key stakeholders, including government officials, regulators, and local communities.

    On Thursday, Dr. Ainojie “Alex” Irune, Managing Director, OERNL and other members of the company’s leadership team, visited Bayelsa State Governor Duoye Diri to outline the company’s plans for the state. Dr. Irune shared Oando’s 30-year history in Nigeria, from its humble beginnings in the downstream sector to its growth in the midstream and upstream sectors, highlighting the ConocoPhillips acquisition which gave Oando its initial 20% interest in the Joint Venture (JV) with NAOC and NNPC. He also discussed Oando’s recent acquisition of the company NAOC and its 20% interest, which brings Oando’s interest in the JV to 40%, alongside NNPC’s 60%.

    The Governor praised the company’s efforts to establish a strong relationship with the state government and communities. “We are happy to receive you as the new owners of Nigerian Agip Oil Company (NAOC). You are now part and parcel of the family of Bayelsa. We are excited that an indigenous company is now in charge of a multinational oil company like NAOC that has operated here for four decades”, he said.

    Bayelsa State is Nigeria’s oil hub, with significant reserves and production. The state’s economy relies heavily on the oil and gas industry. Oando’s acquisition of NAOC and her assets is expected to boost economic activities and create jobs across the four states its operations reside in.

    Read Also: Govt pushes ahead with 2mbpd as Oando gets 100,000 bpd target

    The Governor commended Oando’s commitment to local content, saying, “We believe that you will do better than the previous operators.” He emphasised the importance of involving local communities in decision-making processes.

    Oando pledged to prioritise community development, focusing on education, healthcare, and infrastructure. The company plans to increase production and bring value to Bayelsa State and Nigeria.

    During the visit, the Governor and Oando’s management team discussed ways to address the state’s energy needs. Bayelsa State faces significant energy challenges, with many communities lacking access to reliable electricity.

  • Govt pushes ahead with 2mbpd as Oando gets 100,000 bpd target

    Govt pushes ahead with 2mbpd as Oando gets 100,000 bpd target

    The federal government remains on course to achieve its target of average production of 2.0 million barrels per day (mbpd) by December 2024 as Oando continues to scale up its production.

    Following the acquisition of the Nigerian Agip Oil Company (NOAC) onshore assets, Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobri yesterday charged Oando to increase its production to 100,000 barrels per day (bpd).

    Speaking when Oando’s Chief Operating Officer, Mr.  Alex Irune paid him a visit in Abuja, Lokpobri said there were reports that the firm has already raised its production from over 20,000 bpd to over 30,000 bpd in just a few days of the acquisition.

    “I am happy to also tell you that I got information, I got my intelligence that following the successful acquisition, you have already increased production from above 20,000 to more than 30,000. That is what I am saying that Oando can do it, and I am looking forward to the time that you do 100,000,” Lokpobbri said.

    He said his job is to do all in his power to create the best environment for Oando  and other companies operating in the Niger Delta region to boost production.

    He said in order to lift the country out its economic challenges, it requires increased crude oil  production.

    He reiterated that the target of the country is to hit the target of 2.0 million bpd in December this year.

    “You know, to increase production, which we seriously need now. But the shortest way for us to get out of our current economic problems is to increase production. And our target is that by December we want to hit at least two million barrels,” Lokpobri said.

    The minister also disclosed that with the acquisition of NAOC, the stock of Oando Energy Plc has soared. He said his expectations is for the value to increase to N1, 000 per share in the stock market.

    In order to provide the right environment, the minister revealed he has already met the Bayelsa State Governor, Douye Diri to solicit cooperation with Oando operations.

    He urged the company to take advantage of being an  indigenous to relate better with its host community than the International Oil Companies (IOCs) and also hit optimal performance.

    He recalled he had granted a media interview informing the foreign press that the indigenous firm has the capacity to operate the divested assets.

    Lokpobri thus, charged the firm to sustain the same momentum the IOCs reached. He congratulated the firm  for history of acquisition of two firms: Conoco Philips and the NAOC.

    Read Also: Lokpobiri urges Oando to increase production to 100,000b/d with NAOC

    Meanwhile, Irune said based on the history of the company that rose from 500 filling stations, it would continue to do great things.

    He said with the completion of the acquisition, the company now holds 40 per cent joint venture interest with the Nigerian National Petroleum Company Limited (NNPCL).

    According to him, it is not only a foreign company that has the exclusivity of being an IOC. He insisted that a Nigerian firm can also do it.

    “First transaction was in 2014;  ConocoPhillips, 20 per cent interest in the now of JV, and now the conclusion of ENI’s 20 per cent stake  now of JV, making us 40 per cent holders in the JV, with the NNPC holding 60 per cent.

    “In everything we have done, Minister, we have sought to put the best of local content forward, inspire Nigerians to show that Nigerians can do it. IOC is not a concept reserved only for companies from the West, the Far East, and the likes,” Irune said.

  • Oando completes $783m Nigerian Agip Oil Company acquisition deal

    Oando completes $783m Nigerian Agip Oil Company acquisition deal

    Oando Plc has completed acquisition of Eni’s Nigerian subsidiary, Nigerian Agip Oil Company (NAOC), setting the pace as the first indigenous company to acquire a whole subsidiary of an international oil company (IOC).

    The completion of the $783 million acquisition deal signaled a new era for the Nigerian energy sector where indigenous oil companies will now participate actively in operating oil and gas assets previously dominated by IOCs.

    The completion came almost a year after the transaction was first announced in September 2023.

    In a regulatory filing yesterday at the Nigerian Exchange (NGX), Oando noted that the acquisition was a significant milestone for the group’s long-term strategy to expand its upstream operations and strengthen its position in the Nigerian oil and gas sector.

    With the completion of the transaction, Oando’s current participating interests in OMLs 60, 61, 62, and 63 increase from 20 per cent to 40 per cent.

    The deal also increases Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include 40 discovered oil and gas fields, of which 24 are currently producing, approximately 40 identified prospects and leads, 12 production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants with a total nameplate capacity of 960 megawatts and associated infrastructure.

    Based on 2022 reserves estimates, Oando’s total reserves stand at 505.6MMboe and the transaction will deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe.

    Read Also: Tinubu has no interest in Oando acquisition — NNPCL

    Oando pointed out that the acquired company is immediately cash generative and will contribute significantly to the cashflows of the group.

    The latest acquisition came a decade after Oando’s landmark $1.8 billion acquisition of ConocoPhillips’ Nigeria interest, a transaction which incidentally made the company a Joint Venture (JV) partner on the asset alongside NNPC E&P Ltd (NEPL) and NAOC. The ConocoPhillips transaction propelled Oando’s production from approximately 4,500 barrels of oil per day to 50,000 barrels of oil per day at the time.

    Group Chief Executive,  Oando Plc, Mr. Wale Tinubu, said the acquisition was the culmination of 10 years of hard work, resilience, and an unwavering belief that the group would realise its ambition.

    “It is a win, not just for Oando, but for every indigenous energy player as we take our destiny in our hands. This is a new dawn for the Nigerian energy sector, and we are confident that indigenous companies will play a pivotal role in this next phase of the nation’s upstream evolution.

    “With our assumption of the role of operator, our immediate focus is on optimising the assets’ immense potential in contributing to our strategic objectives, whilst complementing the nation’s plan to boost production outputs.

    “Looking to the future, we will continue to pursue strategic opportunities that provide enhanced growth and value creation for our stakeholders, particularly in clean energy, agri-feedstock sector, as well as infrastructure and mining,” Tinubu said.

    In the last decade, international oil companies operating in Nigeria have pursued divestment strategies, focusing on exiting shallow water and onshore assets while maintaining interests in the deep waters. The trend indicates an IOC exodus from mature African basins, driven by factors such as declining production and increasing operational risks. This is leading to a shift towards frontiers like Namibia and Guyana, where there are opportunities for less carbon-intensive projects and less risky offshore developments.

    Nigerian oil production has fallen well below its capacity of over 2 million b/d of crude and condensate due to rampant oil theft and sabotage in the restive Niger Delta, as well as underinvestment and sluggish exploration activity. The country produced 1.47 million b/d in May 2024, according to the Platts OPEC Survey from S&P Global Commodity Insights.

    Speaking in an interview with S & P Global Commodity Insights, Dr Ainojie Irune, Executive Director, Oando Plc & Chief Operating Officer, Oando Energy Resources, said that indigenous companies are well placed to rejuvenate the sector.

    “If you look at the local companies that have stepped forward… there’s no doubt that indigenous capacity exists,” Irune said.

    Given the successful completion of Eni’s divestment to Oando, which has set an industry precedent, there is anticipation of further asset divestments as other indigenous players intensify efforts to fulfil the requisite regulatory, financial and contractual conditions for transaction completion.

    Seplat Energy, in February 2022, had announced an agreement for the acquisition of ExxonMobil’s entire share in its shallow water business — Mobil Producing Nigeria Unlimited (MPNU), while indigenous player Chappal Energies in November 2023 announced that it had entered into a sale agreement with Norwegian oil company Equinor for its Nigerian entity, while Shell agreed to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance Consortium for $2.4 billion.

    Experts expected these divestment deals to bring in fresh capital, technology, and expertise, which will help to increase oil production, reduce carbon emissions, and create new opportunities for Nigerians in the industry.

    Analysts have said indigenous companies possess a distinct advantage in terms of local knowledge, operational flexibility, and community relations. When coupled with global best practices, this advantage offers unparalleled opportunities to optimise value creation within the sector.

    “My personal opinion is that having indigenous players will definitely improve issues around fairness and this need to engage in sabotage and theft.” Collectively, independents can build a more cohesive and collaborative oil sector,” Irune said.

    Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe had said prospective indigenous players should perceive IOCs’ divestments in some of the upstream assets as an opportunity rather than a threat to the development of the Nigerian upstream petroleum sector.

    “It is indeed the right time to look inwards in the sector to boost the capability of local content in value addition and optimising the development of the nation’s hydrocarbon resources. Therefore, we encourage indigenous players across the value chain to deploy their competencies and ingenuity in promoting vibrancy and capacity utilization in the industry,” Komolafe said.

    As the Oando-Eni deal concluded with Eni fully divesting from its Nigerian Subsidiary, NAOC, the IOC highlighted that NAOC Ltd participating interest in SPDC JV -Shell Production Development Company Joint Venture-operator Shell 30 per cent, TotalEnergies 10 per cent, NAOC 5.0 per cent, NNPC 55 per cent, is not included in the transaction and will be retained in Eni’s portfolio.

  • IOCs divestments opportunity for Nigerian energy companies, says Oando

    IOCs divestments opportunity for Nigerian energy companies, says Oando

    Nigerian energy companies now have opportunities to play major roles in the development of the domestic oil and gas industry with new investment windows being created by divestments by international oil companies (IOCs).

    General Manager, Commercial, Oando Energy Resources, Akinbambo Ibidapo-Obe, said the divestments by IOCs were a mix of opportunities for the indigenous energy companies.

    Ibidapo-Obe spoke in Lagos at the Society of Petroleum Engineers (SPE) 2024 Nigeria Annual International Conference and Exhibition (NAICE).

    The three-day conference, themed “Petroleum Industry Value Chain Optimisation: The Inevitability of Midstream and Downstream Development,” was sponsored by IOCs and indigenous energy companies like Oando, Seplat, and Aradel, among others.

    Read Also: NAF graduates 61 finance officers, men

    For over a decade, oil majors in Nigeria have pursued divestment strategies, focusing on exiting the shallow water and onshore sectors while maintaining interests in the deep waters and downstream sectors. In February 2022, Seplat Energy announced an agreement to acquire ExxonMobil’s entire share in its shallow water business—Mobil Producing Nigeria Unlimited (MPNU). In September 2023, Oando disclosed that it had signed a deal to acquire Eni’s subsidiary, Nigerian Agip Oil Company Limited (NAOC). In November 2023, Norwegian oil company Equinor announced that it had sold its Nigerian entity to Chappal Energies, the end of Equinor’s three-decade association with Africa’s largest oil producer, to name a few.

    A key highlight of the conference was the topical issues workshop, a session that explored the theme “The Outlook of the Nigerian Oil and Gas Industry, Post IOC Divestment and Exits: Opportunities and Challenges”. The session delved into the recent spate of IOC divestment and its implications for the country and indigenous players, providing valuable insights and strategies for the future.

    At the session, Ibidapo-Obe shared Oando’s strategies and preparations for the IOCs divestment, underscoring the company’s proactive approach.

    He described the current spate of divestments as an inevitable reality indigenous companies have been preparing for.

    “Where we are now is a confluence of opportunity and preparation. The government has been deliberate about ensuring the transfer of knowledge from the IOCs to the indigenous companies over the years. Oando, along with other indigenous companies, has also proven its technical abilities to operate and manage these assets through the marginal fields programme and earlier divestments. It is now time for indigenous companies to step up, prove themselves on this global stage and drive significant growth and innovation in the industry,” Ibidapo-Obe said.

    Also at the conference, the plenary session themed ‘Unlocking Upstream Value: Developing Markets, Trade Access, and Facilitating Partnerships in the Midstream and Downstream’ was addressed by seasoned panelists. This highly engaging dialogue resulted in a wealth of perspectives, strategies and recommendations for optimising value creation across the Nigerian oil and gas industry, including specific strategies for developing markets, enhancing trade access, and fostering partnerships.

    General Manager, SubSurface, Oando Energy Resources, Babafemi Onasanya, noted that partnerships were not just critical, but essential to the development of the sector.

    He highlighted the industry’s reliance on Joint Venture (JV) partnerships between operators and the Nigerian government, underscoring the importance of collaboration and shared goals.

    “As more indigenous players take up prominent roles in the industry, they will need to secure key partnerships in critical areas for efficiency and sustainability. The first necessary partnership is with financial advisors/offtakers to either fund the capital-intensive nature of the business, or to provide advisory to source and secure funding. The second is a deliberate, engaging and adaptable partnership with host communities to encourage better dialogue and impact. Lastly, we need strategic partnerships with technology partners to address different areas of specialization,”  Onasanya, who represented Executive Director, Oando Plc and Chief Operating Officer, Oando Energy Resources, Dr. Ainojie’ Alex’ Irune, said.

    The conference entreated attendees to workshops, panel sessions, an award and gala night, as well as networking opportunities. In attendance were the Honourable Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri; the Honourable Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo; the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari; the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed; and the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, among other stakeholders.

    The conference also featured a Young Professionals Workshop and a Women Leadership Program focused on developing demographic-specific policies and recommendations to enhance industry participation and value. Overall, the robust dialogue throughout the three-day event produced some welcomed perspectives on the ever-evolving sector.

  • Oando denies owning Malta oil storage, blending facility

    Oando denies owning Malta oil storage, blending facility

    Oando Plc yesterday absolved itself from an allegation of owning any form of interest  in Maltese Oil Storage and Blending Facility- Ras Hanzir Oil Terminal Limited

    In a statement signed by its Company Secretary, Ayotola Jagun, a copy of which was made available to The Nation, Oando stated such claims remain untrue.

    According to the statement, Oando maintained that it conducted a comprehensive investigation into claims, including conducting a search of the Malta Business Registry, and it yielded no results for a company with such name.

    The statement read:  “Our attention has been drawn to recent allegations on social and digital media, leveled against Oando PLC (‘Oando’ or ‘the Company’) of being a shareholder, and its Principals of being board members, in a Maltese company, Ras Hanzir Oil Terminal Limited that operates an oil storage and blending facility, and is purportedly responsible for importing adulterated petroleum products into Nigeria.

    Read Also: Tinubu establishes SCO-PMU to manage health sector funding

    “Considering the above, we wish to refute such claims and attest that neither Oando PLC nor its Executives have ever held shares, investments, or interests in the said Maltese company.

    “As part of a comprehensive investigation into the basis of the false claims, we conducted a search of the Malta Business Registry, the official repository for all registered entities past and current within the country. Our search yielded no results for a company bearing that name. Subsequent due diligence efforts similarly failed to uncover any record of the company’s existence.

    “We believe that the false claims are of the malicious intent of misleading the public and our stakeholders.

    “We want to reiterate that as a publicly listed company, any corporate actions, such as acquisitions, are declared publicly in accordance with applicable corporate governance laws and rules.

    “Furthermore, it is imperative that information released about a publicly quoted company such as Oando, is thoroughly researched and deemed accurate before it is published in the public domain. The company’s securities are traded daily across two exchanges (NGX and JSE). To prevent misinformation and confusion among investors, as well as our other stakeholders, we implore all members of the press to take adequate steps to ensure the veracity of reports by fielding all enquiries with Oando PLC’s Corporate Communications department,” the statement concluded.

  • We’ve no interest in alleged Maltese oil company, says Oando

    We’ve no interest in alleged Maltese oil company, says Oando

    Oando Plc has refuted insinuations in some quarters that it has owning interests in an alleged Maltese company.

    In a regulatory filing at the Nigerian Exchange (NGX), Oando stated that neither the company as an entity nor its executives have ever held ownership stakes in a Maltese oil storage & blending facility, Ras Hansir Oil Terminal Limited, which was purportedly responsible for importing adulterated petroleum products into Nigeria.

    “Considering the above, we wish to refute such claims and attest that neither Oando Plc nor its Executives have ever held shares, investments, or interests in the fictitious Maltese company.

    “As part of a comprehensive investigation into the basis of the false claims, we conducted a
    search of the Malta Business Registry, the official repository for all registered entities past and current within the country. Our search yielded no results for a company bearing that name.

    “Subsequent due diligence efforts similarly failed to uncover any record of the company’s
    existence. We therefore believe that the false claims are of the malicious intent of misleading the public and our stakeholders,” Oando stated.

    Read Also: I’m deeply pained by Iwuanyanwu’s death, says Uzodimma

    Oando pointed out that as a publicly listed company, which shares are traded on NGX and South Africa’s Johannesburg Stock Exchange (JSE) any corporate actions, such as
    acquisitions, are declared publicly in accordance with applicable corporate governance laws and rules.

    “Furthermore, it is imperative that information released about a publicly quoted company such as Oando, is thoroughly researched and deemed accurate before it is published in the public domain,” Oando stated.

    The company urged stakeholders to always take adequate steps to ensure the veracity To
    prevent misinformation and confusion among investors, as well as other parties.

    President of Dangote Group and Chief Executive Officer of Dangote Petroleum Refinery, Alhaji Aliko Dangote had alleged that officials of Nigerian National Petroleum Company (NNPCL) Limited had oil facility in Malta and frustrating his company’s local refining operations.

    Group Managing Director, Nigerian National Petroleum Company (NNPCL), Mele Kyari has denied Dangote’s claim and challenged Dangote to name such officials, if they ever existed.

  • Oando: Why gas supply agreements aren’t implemented in Nigeria 

    Oando: Why gas supply agreements aren’t implemented in Nigeria 

    Several Gas Supply Agreements signed in Nigeria have remained unimplemented because the parties have not met the condition precedent to the execution of the contracts.

    An indigenous oil and gas firm, Oando Plc, made this known during a panel session: “Solving Africa’s Gas Development and Utilization Challenges Through Domestication of Innovation,” at the African Gas Investment Summit 2024 in Abuja on Friday, June 14.

     The Executive Director, Dr. Ainojie Alex Ilune, who was represented by the Head, Commercial Operations, Mr. Solomon Agba, urged the stakeholders to address the challenge of securitization of the agreement.

    “We have to first of all fix securitization issue,” said Ilune. 

    He lamented that off-takers are unable to secure finance for gas projects.

    His words: “Our off-taker is not able to get the finance. That is very key. 

    “There are several gas supply agreements that we have that are just there. 

    Read Also: Oando leads in $925m Afrexim bank-NNPCL financing deal

    “There is no implementation because the condition precedent have not been met. So, we have to deal with securitization.”

    He urged the experts to have a holistic examination of the entire gas value chain to have return on investment. 

    Ilune noted that unless the sector takes the aforementioned steps, it will end up subsidizing other sectors.

    He said even as the gas sector is not clamouring for subsidy, it requires incentives to thrive.

    He noted that the shortness of the country’s approach is one of the banes of the gas sector, stressing there should be long term approaches for the sake of sustainability of investments. 

    Insisting there must be return on investment to drive sustainability, he said

    “We need the central arrangement where each sector has to pay for itself. It is not economics, then you will not find investment. 

    “Everybody wants a return on investment, looking on value chain, it does not pay for itself, there will be no investment and that is one of the key problems that we have in this sector.”

    The Executive Director, who described data as the new oil, sought the democratization of data in the country.

    Speaking virtually, African Energy Chamber (AEC) Executive Chairman, Mr. NJ Ayuk, said aside pricing, demand for gas is a major factor, which can determine the future of investment in the sector.

    He said Nigeria is a huge player in the African gas industry.

    According to him, since there has been gas everywhere in Africa most of it would be exported.

    He sought a complete implementation of gas agreements.

    He urged the stakeholders to ponder on how to finance the production of gas in the continent.

    He said most of the off-takers are not able to embark on large scale projects.

    “We need to drive how we fix our utilities infrastructure,” he challenged the experts.

    He said the continent needs infrastructure to drive gas around Africa 

    He sought the removal of bureaucratic bottlenecks from gas projects implementation. 

  • Oando leads in $925m Afrexim bank-NNPCL financing deal

    Oando leads in $925m Afrexim bank-NNPCL financing deal

    •We’re committed to value creation for all, says Tinubu

    Oando Plc, Nigeria’s leading indigenous energy group, contributed more than half of the latest disbursement of $925 million under the $3.3 billion structured crude-oil backed forward sale finance arrangement between African Export-Import Bank (Afreximbank) and Nigerian National Petroleum Company Limited (NNPCL).

    This came as Johanneesburg Stock Exchange (JSE) announced the resumption of trading on Oando’s shares after the energy group posted a pre-tax profit og N104 billion.

    The strong rebound underlined by the latest operational results triggered a rally on Oando’s share price at the Nigerian Exchange (NGX). Oando’s share price rose by 52.8 per cent between April 28, 2024 and June 6, 2024.

    Nigeria received additional disbursement of $925 million under the syndicated $3.3 billion crude oil deal known as Project Gazelle and sponsored by the NNPCL, bringing total current funded facility size to $ 3.175 billion, after initial funded commitments of $2.25 million in December 2023.

    Under the latest disbursement, Oando contributed $550 million through its trading arm, Oando Trading.

    Read Also: NILDS: Nigeria’s Cambridge, Harvard, says Akpabio

    The balance $375 million was raised by other parties to get a total disbursement amount of $925 million.

    The landmark $3.3 billion Afreximbank-arranged financing is the largest syndicated loan ever raised by Nigeria in the international market and one of the largest syndicated debts raised in Africa in recent years.

    Speaking on Oando’s participation, Group Chief Executive, Oando Plc, Wale Tinubu, said the successful completion of the second disbursement signified another win for the company and the country at large.

    “The transaction further reinforces Oando’s ability to create value and the company’s status as the indigenous partner of choice in Nigeria.

    “As a proudly indigenous company our ambition has always been to use our platform to support the sustainable development of the nation. Against this backdrop, Project Gazelle will be instrumental in realising the Federal Government’s efforts to boost the country’s socio-economic indices,” Tinubu said.

    He noted that Afreximbank, as lead arranger, has continued to support African corporations – public and private growing confidence in the market and continent.

    President, African Export Import Bank (Afreximbank), Prof. Benedict Oramah said the milestone achieved thus far, on the $3.3 billion facility, demonstrates the bank’s capabilities in performing its role as a crucial development partner for Africa.

    “It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities,” Oramah said.

    He noted that the facility was ‘a landmark’ for being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa.

    He said the closure of the first accordion demonstrated the existence of positive market appetite for well structured commodities-backed instruments.

    Group Chief Executive Officer,  Nigerian National Petroleum Company (NNPC) Limited, Mallam Mele Kyari commended Afreximbank for its investment philosophy and active interest in co-creation of prosperity.

     “The successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPCL and Nigeria’s growth aspirations,” Kyari said.

    He further assured Afreximbank and all investing communities of NNPCL’s resolve to continue to grow the nation’s hydrocarbon resources and strengthen its partnerships across the oil and gas value chain locally, and globally.

  • Johannesburg Stock Exchange resumes trading on Oando after N104.1b profit

    Johannesburg Stock Exchange resumes trading on Oando after N104.1b profit

    South Africa’s Johannesburg Stock Exchange (JSE) has lifted suspension on the secondary trading on the shares of Oando Plc, paving the way for resumption of trading on the shares of Nigerian energy group.

    Oando, which has dual listing on the Nigerian Exchange (NGX) and JSE, confirmed the lifting of the suspension in a regulatory filing yesterday.

    The board of Oando reiterated its commitment “to maintaining the highest standards of corporate governance and transparency”.

    Oando had last weekend released its latest financial and operational reports, for the year ended December 31, 2023, showing a pre-tax profit of N104.1 billion, in a major turnaround from recent streak of losses.

    Key extracts of the 12-month interim report showed significant growths across key performance indicators, strengthening optimism on the outlook of the energy group, which recently signed a deal to acquire Eni’s shares in one of its Nigerian subsidiaries, the Nigeria Agip Oil Company Limited (NAOC).

    Turnover rose by 71 per cent from N1.9 trillion in 2022 to N3.4 trillion in 2023. As against net loss of N81.2 billion in 2022, the company recorded net profit of N74.7 billion in 2023. Pre-tax profit stood at N104.1 billion in 2023, compared with pre-tax loss of N61.84 billion in 2022.

    The report also highlighted significant reduction of 23 per cent in the group’s upstream borrowings from $635.6 million in 2022 to $488.9 million in 2023.

    Read Also: Oando’s N104.1b profit rallies investors

    The performance of the group was driven by considerable improvements in major business categories with trading operations rising by 50 per cent. Traded crude oil volumes rose to 32.8 million bbls in 2023 as against 21.8 million bbls in 2022. Traded refined petroleum products dropped by 15 per cent to 1.646 million MT in 2023 compared with 1.938 million MT in 2022.

    The upstream saw increase in production from 20,703 boepd in 2022 to 20,837 boepd in 2023, despite the challenges in the oil producing region. Oil production stood at 6,024bbls/day in 2023 as against 4,939bbls/day in 2022. Natural gas production stood at 14,572boe/day in 2023 compared with 15,292boe/day in 2022. NGL production was 241bbls/day in 2023 as against 472bbls/day in 2022.

    The release of the 2023 results brings the company a step closer to being in line with regulatory requirements for all listed companies.  It indicates that by the end of this year, Oando will be on track with its peers in reporting results thus giving confidence to shareholders and investors on the company’s current state and future.

    2023 has seen Oando push forward with its growth agenda, recording positive highlights, including the signing of a Sale & Purchase Agreement (SPA) with Italian oil major, Eni to acquire one of its local subsidiaries, the Nigeria Agip Oil Company Limited (NAOC).

    In addition, its clean energy arm, Oando Clean Energy Limited (OCEL) launched its electric mass transit buses in partnership with the Lagos State government, signaling that things are beginning to look up for the indigenous giant.

    Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said the results showed that the company has weathered the storm and on track to consolidate future growth.

    According to him, despite the persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, the profit after tax of N 74.7 billion in 2023 was largely driven by increased trading volumes due to strategic global partnerships and net foreign exchange gains on the group’s foreign currency denominated assets as against losses on foreign currency denominated liabilities.

    He noted that the milestone signing of the Sale and Purchase Agreement with Eni towards the acquisition of 100 per cent of the shares of NAOC Ltd, marked a pivotal moment for the company as it is poised to unlock substantial synergies in the near future.

    “Our focus is now on completing the acquisition and seamlessly integrating operations to deliver exceptional value to our shareholders.

    “Having weathered the storm of recent years, our latest results provide a foundation for us to consolidate and build for the future. With our planned acquisition of NAOC, we are positioned to take full operatorship and drive-up outputs, value and efficiencies.

    “Moreover, our foray into and leadership in clean energy expand our footprint as a fit and proper integrated energy company with our feet firmly planted in today’s realities and the possibilities of the future,” Tinubu said.

    Nigeria had seen a decline in national oil output, precipitated by pipeline vandalism, oil theft and illegal refining, against this backdrop Oando’s Upstream operations saw average daily production increase marginally by one per cent to 20,837 boepd in 2023 vs 20,703 boepd in 2022.

  • Oando’s N104.1b profit rallies investors

    Oando’s N104.1b profit rallies investors

    Oando Plc has recorded nearly the highest possible gain at the Nigerian stock market since the release of its latest financial and operational reports.

    Investors have shown strong positive response to the latest earnings reports , which showed a major recovery for the indigenous energy provider.

    Oando had at the weekend released its results for the year ended December 31, 2023 showing a pre-tax profit of N104.1 billion, in a major turnaround from recent streak of losses.

    Despite the negative overall market situation, Oando has been a major contrarian stock. In the week’s opening trading session, Oando’s share price recorded the second highest gain of 9.75 per cent to close at N12.95 per share.

    Yesterday, Oando also closed with the third highest gain of 9.65 per cent to close at N14.20 per share.

    The All Share Index (ASI)- the benchmark index that tracks share prices at the Nigerian Exchange (NGX), had indicated average decline of 0.11 per cent for the entire market on Monday. It dropped further by 0.07 per cent yesterday.

    Investors are opening up buy orders for Oando’s shares, staking at premium as high as almost the market’s maximum highest daily allowable percentage change of 10 per cent.

    Key extracts of the 12-month interim report showed significant growths across key performance indicators, strengthening optimism on the outlook of the energy group, which recently signed a deal to acquire Eni’s shares in one of its Nigerian subsidiaries, the Nigeria Agip Oil Company Limited (NAOC).

    Turnover rose by 71 per cent from N1.9 trillion in 2022 to N3.4 trillion in 2023. As against net loss of N81.2 billion in 2022, the company recorded net profit of N74.7 billion in 2023. Pre-tax profit stood at N104.1 billion in 2023, compared with pre-tax loss of N61.84 billion in 2022.

    The report also highlighted significant reduction of 23 per cent in the group’s upstream borrowings from $635.6 million in 2022 to $488.9 million in 2023.

    The performance of the group was driven by considerable improvements in major business categories with trading operations rising by 50 per cent. Traded crude oil volumes rose to 32.8 million bbls in 2023 as against 21.8 million bbls in 2022. Traded refined petroleum products dropped by 15 per cent to 1.646 million MT in 2023 compared with 1.938 million MT in 2022.

    The upstream saw increase in production from 20,703 boepd in 2022 to 20,837 boepd in 2023, despite the challenges in the oil producing region. Oil production stood at 6,024bbls/day in 2023 as against 4,939bbls/day in 2022. Natural gas production stood at 14,572boe/day in 2023 compared with 15,292boe/day in 2022. NGL production was 241bbls/day in 2023 as against 472bbls/day in 2022.

    The release of the 2023 results brings the company a step closer to being in line with regulatory requirements for all listed companies.  It indicates that by the end of this year, Oando will be on track with its peers in reporting results thus giving confidence to shareholders and investors on the company’s current state and future.

    2023 has seen Oando push forward with its growth agenda, recording positive highlights, including the signing of a Sale & Purchase Agreement (SPA) with Italian oil major, Eni to acquire one of its local subsidiaries, the Nigeria Agip Oil Company Limited (NAOC).

    In addition, its clean energy arm, Oando Clean Energy Limited (OCEL) launched its electric mass transit buses in partnership with the Lagos State government, signaling that things are beginning to look up for the indigenous giant.

    Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said the results showed that the company has weathered the storm and on track to consolidate future growth.

    According to him, despite the persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, the profit after tax of N 74.7 billion in 2023 was largely driven by increased trading volumes due to strategic global partnerships and net foreign exchange gains on the group’s foreign currency denominated assets as against losses on foreign currency denominated liabilities.

    He noted that the milestone signing of the Sale and Purchase Agreement with Eni towards the acquisition of 100 per cent of the shares of NAOC Ltd, marked a pivotal moment for the company as it is poised to unlock substantial synergies in the near future.

    “Our focus is now on completing the acquisition and seamlessly integrating operations to deliver exceptional value to our shareholders.

    Read Also: Umahi condemns destruction of 2nd Niger bridge superstructure

    “Having weathered the storm of recent years, our latest results provide a foundation for us to consolidate and build for the future. With our planned acquisition of NAOC, we are positioned to take full operatorship and drive-up outputs, value and efficiencies.”

    “Moreover, our foray into and leadership in clean energy expand our footprint as a fit and proper integrated energy company with our feet firmly planted in today’s realities and the possibilities of the future,” Tinubu said.

    Nigeria had seen a decline in national oil output, precipitated by pipeline vandalism, oil theft and illegal refining, against this backdrop Oando’s Upstream operations saw average daily production increase marginally by one per cent to 20,837 boepd in 2023 vs 20,703 boepd in 2022.

    Reacting to the results, shareholders had earlier expressed optimism on the performance outlook of Oando Plc.

    Shareholders said the recovery, from previous streak of losses, underlined the relentless efforts of the board and management to turn around the company.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, described the latest earnings report of Oando as a “cheering news” to shareholders.

    He said sustaining such performance would bring much joy and celebration to shareholders, urging the management of the company to improve on the performance in the next quarters.

    National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, said shareholders invest in companies to reap rewards and are always happy to see a positive turnaround in the fortunes of companies.

    “I’m very glad and excited about the news. This shows that the board and management are not relenting in turning around the company to profitability. We hope the same trend will continue for the first and second quarters of 2024. We hope the 2023 profit is sustained in many years to come.

    “The reason we invested is to get good returns on our investment, either through dividend or capital appreciation. So, we are happy and glad for Oando’s 2023 financial results,” Bakare said.

    Chairman, Ibadan Zone Shareholders Association (IBZA), Mr. Eric Akinduro, said there were all indications that Oando has gotten out of the wood and shareholders may be in for better returns.

    “It is our expectation that the trend is sustained so that the shares can appreciate for investors to enjoy capital appreciation,” Akinduro said.