Oando

History

Oando’s earliest roots can be traced to the formation of Esso Africa in 1956. Esso Africa was a petroleum marketing company, a subsidiary of the Exxon Corporation of USA. In 1976, the Nigerian government purchased a controlling stake in the company and rebranded the company as Unipetrol Nigeria. On 1 March 1991, Unipetrol became a Public Limited company. Later on in the same year, the Nigerian government sold 60% equity to the Nigerian public in an Initial Public Offering. By February 1992, Unipetrol was listed on the Nigerian Stock Exchange.

In 1999, Unipetrol acquired a 40% stake in Gaslink Nigeria Limited, a gas utility company. The acquisition was motivated by a desire to utilize its exclusive gas sale and purchase agreement with the Nigerian gas company. In 2001, the company increased its stake to 51 per cent. So far, Gaslink has developed 250 km of gas pipeline infrastructure.

In 2000, Ocean and Oil, a private investment company led by Nigerian entrepreneurs Adewale Tinubu and Omamofe Boyo acquired a 30% controlling interest in Unipetrol Plc. In 2001, Ocean and Oil increased its stake in Unipetrol to 42% via an irredeemable convertible loan stock issue.

In 2002, Ocean and Oil led Unipetrol's bid for a 60% stake of Agip Nigeria Plc, a rival petroleum marketing firm, owned by Agip Petroli BV, an Italian-based oil company. The merged company was named Oando PLC in 2003, making the company the largest downstream petroleum marketing company in Nigeria.

In 2005, Oando Energy Services was incorporated as an integrated Oilfield Services company to achieve the group’s objectives in the upstream services industry.

In 2007, Oando Energy services acquired two oil drilling rigs in Nigeria’s Niger Delta. In 2008, the company emerged Nigeria’s first indigenous oil company with interests in producing deep water assets through the acquisition of equity in two oil blocks. By 2009, the company had acquired 5 swamp rigs and in 2010, the company launched its first Independent Power Plant for the Lagos Water Corporation. The project involved the construction of a 12.5MW power plant to provide uninterrupted power supply to the Lagos Water Corporation.

In 2011, Oando Gas and Power commissioned 128 km EHGC Pipeline, the pipeline was built under a joint venture arrangement with the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC)]. The gas infrastructure has the capacity to deliver up to 100 million standard cubic feet per day (mmscf/d) of natural gas and will deliver an initial 22mmscf/d of gas to its maiden customer, United Cement Company (UNICEM), to fuel its new 2.5million metric tonnes per annum cement plant, located in Mfamosing, Akampka Local Government Area of Cross River State.

In 2012, Oando Exploration and Production Limited ("OEPL") signed a farm-in agreement with Network Exploration & Production Nigeria Limited ("NEPN") for the acquisition of 40% participating interest in the Qua Iboe field (OML 13) subject to the consent of the Minister of Petroleum.

In 2013, Oando Plc succeeded in raising over N55.2 billion from the capital markets as its Rights Issue recorded 101 per cent subscription. The company issued 4.548 billion shares to existing shareholders at N12 per share between December 2012 and February 2013 with the intention of raising N54.6 billion. Oando Gas and Power commissioned 10.4 MW Alausa Independent Power Plant to provide electricity to the Lagos State Secretariat Complex. Following the decommissioning of OES Professionalism in 2013, OES currently has a fleet of 4 rigs; OES Teamwork, OES Respect, OES Integrity and OES Passion.

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

In 2014, Oando Energy Resources ("OER") listed on the TSX an affiliate company of Oando PLC entered into agreements with ConocoPhillips ("COP") to acquire its entire business interests in Nigeria for a total cash consideration of ~ $1.5 Billion.

In June 2015, Oando entered into an agreement with HV Investments II B.V., ("HVI"), a joint venture owned by a fund advised by Helios Investment Partners ("Helios") and The Vitol Group ("Vitol"), for a cash investment of US$276.8 million in Oando’s Downstream business.

Overview

From its beginnings as a fuels marketer, the company has grown to become a sub-Saharan integrated energy company. Oando currently operates a group structure consisting of six subsidiaries across the energy value chain. The company plans to become Africa's energy major.

Oando employs close to 1,000 personnel in various West-African countries. Oando Marketing Limited, the company's downstream subsidiary owns Nigeria's largest petroleum retail network with over 600 Petrol stations. Oando Supply & Trading, another subsidiary of the company is Nigeria's largest independent importer of PMS. The company imported up to 4 million metric tons of white products into Nigeria between 2007 and 2009. In the Upstream sector, Oando Exploration & Production (OEPL) is the operator of two oil blocks in Nigeria's Niger Delta region – OPL 278 and OPL 236. The company is also a Nigerian Content Partner with AGIP Oil on OPL 282 and has a 45% interest in a marginal field, OML 56.

Operating divisions

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

Board of directors

As of October 2013:

Strategic Assets