Oando PLC
Encyclopedia
Oando is a Pan- African multinational
energy
corporation. Headquartered in Lagos
, Nigeria
, and active in various Africa
n countries, it is engaged in every aspect of the energy value chain
, including Petroleum
marketing
, exploration and production; refining, and power generation. Oando is Nigeria's largest non-government owned company in the energy industry
. It is the first Nigerian company to achieve a dual listing on both the Nigerian and Johannesburg Stock Exchanges, and Nigeria’s largest oil company with a market capitalization
in the region of $1billion.
In 1976, the Nigerian government purchased a controlling stake in the company and rebranded the company as Unipetrol Nigeria. On the 1st of 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.
In 2000, Ocean and Oil, a private investment company led by Nigerian entrepreneur
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
. 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 blocs. 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.
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. Oando Supply and Trading 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.
Oando has been a beacon of Nigeria's local content law which seeks to increase indigenous participation in the oil and gas industry.
program. Its major programmes are geared towards youth, social and economic empowerment, with a special focus on improving the quality of basic education
in Nigeria. The company has innovated numerous avenues for giving back to the society, they are; Adopt-A-School Programme, Sponsorships, Scholarships, and Community Development Projects. Through its Adopt-A-School programme, the company has adopted 27 government-owned primary schools in its host communities. These schools have been renovated and provided with water and appropriate sanitation facilities.
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
energy
Energy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...
corporation. Headquartered in Lagos
Lagos
Lagos is a port and the most populous conurbation in Nigeria. With a population of 7,937,932, it is currently the third most populous city in Africa after Cairo and Kinshasa, and currently estimated to be the second fastest growing city in Africa...
, Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
, and active in various Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
n countries, it is engaged in every aspect of the energy value chain
Value chain
The value chain, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.-Firm Level:...
, including Petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
, exploration and production; refining, and power generation. Oando is Nigeria's largest non-government owned company in the energy industry
Energy industry
The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution...
. It is the first Nigerian company to achieve a dual listing on both the Nigerian and Johannesburg Stock Exchanges, and Nigeria’s largest oil company with a market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
in the region of $1billion.
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 U.S.A.United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
In 1976, the Nigerian government purchased a controlling stake in the company and rebranded the company as Unipetrol Nigeria. On the 1st of 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
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
. 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.
In 2000, Ocean and Oil, a private investment company led by Nigerian entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
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
Oil rig
Oil rig may refer to* Drilling rig, an apparatus for on-land oil drilling* Oil platform, an apparatus for offshore oil drillingOIL RIG or OILRIG may refer to :...
in Nigeria’s Niger Delta
Niger Delta
The Niger Delta, the delta of the Niger River in Nigeria, is a densely populated region sometimes called the Oil Rivers because it was once a major producer of palm oil...
. 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 blocs. 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
Power supply
A power supply is a device that supplies electrical energy to one or more electric loads. The term is most commonly applied to devices that convert one form of electrical energy to another, though it may also refer to devices that convert another form of energy to electrical energy...
to the Lagos Water Corporation.
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. Oando Supply and Trading 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.
Oando has been a beacon of Nigeria's local content law which seeks to increase indigenous participation in the oil and gas industry.
Operating divisions
Oando PLC is organized functionally into a number of operating divisions. These divisions are grouped into three categories:- Upstream
- Midstream
- Downstream
Downstream
- Oando Marketing Limited (Operator of over 600 Petrol stations, and marketer of motor oilMotor oilMotor oil or engine oil is an oil used for lubrication of various internal combustion engines. The main function is to lubricate moving parts; it also cleans, inhibits corrosion, improves sealing, and cools the engine by carrying heat away from moving parts.Motor oils are derived from...
s) - Oando Supply and Trading
Corporate affairs
The current Chairman of the Board is Alhaji Mohammed Magoro, and the CEO is Jubril Adewale Tinubu. The Deputy CEO of the group is Mr. Omamofe Boyo. Oando employs a work force of over 1,000 people.Board of directors
As of January 2010:- HRM Oba M. A. Gbadebo (Chairman)
- Jubril Adewale Tinubu (Group CEO)
- Omamofe Boyo (Deputy Group CEO)
- Bolaji Osunsanya
- Femi Adeyemo
- Ms Amal Pepple
- Mr. Navaid Burney
- HRM Oba M.A Gbadebo
- Chief Sena Anthony
- Mr. Oghogho Akpata
- Ms Nana Afoah Appiah-Korang
Strategic Assets
- Over 600 Retail Outlets in West Africa
- 7 Petroleum Storage Depots
- 3 Aviation Fuel Depots
- 2 Bitumen Plants
- 2 LubricantLubricantA lubricant is a substance introduced to reduce friction between moving surfaces. It may also have the function of transporting foreign particles and of distributing heat...
Blending Plants - 10 LPG Filling Plants
- 1 Grease Plant
- 1 AerosolAerosolTechnically, an aerosol is a suspension of fine solid particles or liquid droplets in a gas. Examples are clouds, and air pollution such as smog and smoke. In general conversation, aerosol usually refers to an aerosol spray can or the output of such a can...
Filling Plant - 100 km gas pipeline in Lagos and 128 km (ongoing) in South Eastern Nigeria
- 5 swamp drilling rigs
Corporate Social Responsibility
Oando PLC has a thriving Corporate Social ResponsibilityCorporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
program. Its major programmes are geared towards youth, social and economic empowerment, with a special focus on improving the quality of basic education
Basic education
Basic education refers to the whole range of educational activities taking place in various settings , that aim to meet basic learning needs. According to the International Standard Classification of Education , basic education comprises primary education and lower secondary education...
in Nigeria. The company has innovated numerous avenues for giving back to the society, they are; Adopt-A-School Programme, Sponsorships, Scholarships, and Community Development Projects. Through its Adopt-A-School programme, the company has adopted 27 government-owned primary schools in its host communities. These schools have been renovated and provided with water and appropriate sanitation facilities.