Oando Plc is a Nigerian multinational

energy Energy () is the physical quantity, quantitative physical property, property that is transferred to a physical body, body or to a physical system, recognizable in the performance of Work (thermodynamics), work and in the form of heat and l ...

company operating in the

upstream Upstream may refer to: * Upstream (hydrology), the direction towards the source of a stream (against the direction of flow) * Upstream (bioprocess), part of therapeutic cell manufacturing processes from early cell isolation and cultivation until ...

midstream The oil and gas industry is usually divided into three major components: upstream, midstream and downstream. The midstream sector involves the transportation (by pipeline, rail, barge, oil tanker or truck), storage, and wholesale marketing of cr ...

and downstream. In July 2016, Oando entered into a tri-partite agreement with the

Vitol Vitol (Pronounced: Vee-Tol) is a Swiss-based Dutch multinational energy and commodity trading company that was founded in Rotterdam in 1966 by Henk Viëtor and Jacques Detiger. Though trading, logistics, and distribution are at the core of its b ...

Group, an independent trader of energy commodities and Helios Investment Partner, an Africa-focused private investment firm to form OVH (formerly known as Oando Downstream). In September 2016, Oando announced the execution of a definitive agreement with a vehicle owned by funds advised by Helios Investment Partners LLP ("Helios"), a premier Africa-focused private investment firm, to acquire 49% of the voting rights in Oando's midstream business subsidiary, Oando Gas and Power Limited. Oando is Nigeria's indigenous oil and gas company with a production output of per day of

oil equivalent The tonne of oil equivalent (abbreviated toe) is a unit of energy defined as the amount of energy released by burning one tonne of crude oil. It is approximately 42 gigajoules or 11.630 megawatt-hours, although as different crude oils have differ ...

, enterprise value of N520 billion and market capitalisation value of N115.1 billion. In 2024, Oando won the ‘Deal of the Year’ award at Africa Energy Week (AEW) 2024.This is because of the Company’s $783 million acquisition of the Nigerian Agip Oil Company (NAOC), owned by

Eni Eni is an Italian oil and gas corporation. Eni or ENI may refer to: Businesses and organisations * Escuela Nacional de Inteligencia, the Argentine intelligence academy * Groupe des écoles nationales d’ingénieurs (Groupe ENI), a French engi ...

, in August 22, 2024.

History

Oando's earliest roots can be traced to the formation of

Esso Esso () is a trading name for ExxonMobil. Originally, the name was primarily used by its predecessor Standard Oil of New Jersey after the breakup of the original Standard Oil company in 1911. The company adopted the name "Esso" (from the phon ...

Africa in 1956. Esso Africa was a downstream marketing company, a subsidiary of the

Exxon Corporation Exxon Mobil Corporation ( ) is an American multinational oil and gas corporation headquartered in Spring, Texas, a suburb of Houston. Founded as the largest direct successor of John D. Rockefeller's Standard Oil, the modern company was form ...

USA The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 states and a federal capital district, Washington, D.C. The 48 contiguous ...

. To increase availability of petroleum products in the hinterland, in 1976 the Nigerian government purchased a

controlling stake A controlling interest is an ownership interest in a corporation with enough voting stock shares to prevail in any stockholders' motion. A majority of voting shares (over 50%) is always a controlling interest. When a party holds less than the majo ...

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 An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...

. 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

entrepreneur Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk (assumed by a traditional business), and potentially involving values besides simply economic ones. An entreprene ...

s 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 The Niger Delta is the delta of the Niger River sitting directly on the Gulf of Guinea on the Atlantic Ocean in Nigeria. It is located within nine coastal southern Nigerian states, which include: all six states from the South South geopolitic ...

. 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 Lagos Water Corporation formerly Federal Water Supply is the principal supplier of water throughout Lagos State. It is owned by the Lagos State Government. The Waterworks was commissioned by Mr. Frederick Lugard, the then Governor General of ...

. The project involved the construction of a 12.5MW

power plant A power station, also referred to as a power plant and sometimes generating station or generating plant, is an industrial facility for the electricity generation, generation of electric power. Power stations are generally connected to an electr ...

to provide uninterrupted

power supply A power supply is an electrical device that supplies electric power to an electrical load. The main purpose of a power supply is to convert electric current from a source to the correct voltage, electric current, current, and frequency to power ...

to the Lagos Water Corporation. In 2011, Oando Gas and Power (now Axxela) 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 The Nigerian National Petroleum Company (NNPC) Limited is a state-owned oil company in Nigeria. Still a fully-owned government company, it was transformed from a corporation into a limited liability company in July 2022. NNPC Limited is the on ...

(NNPC). The gas infrastructure has the capacity to deliver up to at

standard pressure Standard temperature and pressure (STP) or standard conditions for temperature and pressure are various standard sets of conditions for experimental measurements used to allow comparisons to be made between different sets of data. The most used ...

of natural gas and will deliver an initial 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$461 million in Oando's Downstream business. In 2016, Oando PLC completes a strategic US$115.8 million gas and power agreement with Helios. Oando PLC completes sale of Akute IPP. In April 2018, the

Securities and Exchange Commission (Nigeria) The Securities and Exchange Commission (SEC) is the main regulatory institution of the Nigerian capital market. It is supervised by the Federal Ministry of Finance. The Nigerian Stock Exchange (NSE) is privately owned and self-regulating, but t ...

gave the directive for Oando PLC's shares to resume trading on the

Nigerian Stock Exchange The Nigerian Stock Exchange (NGX), now Nigerian Exchange Group, is an integrated stock exchange group in Africa founded in 1961 in Lagos. Following the demutualization of the NSE in 2021, NGX Group now has 3 subsidiaries - Nigerian Exchange Limit ...

after placing the company's shares on suspension in October 2017 in order to execute a forensic audit. On 31 May 2019, the

issued a "Press Release on Investigation of Oando Plc" notifying the public of the conclusion of the commission's investigations of allegations against Oando. The Commission ordered the resignation of board members implicated and barred "...the Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO) of Oando Plc from being directors of public companies for a period of five (5) years". On Monday 3 June 2019 the Federal High Court of Lagos under presiding Judge C M A Olatoregun granted Oando PLC's group chief executive, Adewale Tinubu, and deputy group chief executive, Omamofe Boyo, an injunction restraining the Securities and Exchange Commission from executing sanctions, pending the hearing and determination of the applicant's motion for interlocutory injunction. On 4 September 2020 Oando announced that the NNPC/NAOC/OANDO Joint Venture made Significant Gas & Condensates Discovery Onshore Niger Delta find in the deeper sequences of the Obiafu-Obrikom fields, in OML61, onshore Niger Delta. On 13 December 2020 Oando announced the successful signing of two gas supply agreements with Nigeria Liquefied Natural Gas Ltd (NLNG) for the renewal of gas supply for the existing Trains 1-3 for a term of 10 years and for gas supply for the impending Train 7 for a term of 20 years. On 19 July 2021, Oando entered into a settlement with the Securities and Exchange Commission. The settlement reached by the parties was aimed at preventing further market disruption and harm to Oando PLC’s shareholders. As a result, Oando’s directors and management team have the opportunity to fully focus on business operations whilst continuing to ensure that it is in compliance with all governing statutes.

Statistics

Exploration and Production: 2017 Average Net Production was per day of

Assets Portfolio: 14 Producing Development & Exploration Assets: * of

of 2P Reserves * of oil equivalent of 2C Resources Trading: C 7% of Nigeria's Fuel Requirement is Supplied by Oando Trading OVH Energy: > 320 Retail Outlets Operations in Nigeria, Ghana, Benin and Togo

Operating divisions

Oando PLC is organized functionally into a number of operating divisions. These divisions are grouped into three categories: *Upstream: Oando Energy Resources (OER, The leading indigenous exploration and production company in Nigeria) *Downstream: Oando Vitol and Helios (OVH Energy), Oando Trading

References

External links

* {{Official website, http://www.oandoplc.com/ Oil and gas companies of Nigeria Multinational companies based in Lagos Companies listed on the Johannesburg Stock Exchange Non-renewable resource companies established in 1956 Companies listed on the Nigerian Stock Exchange