OandoOandoOandoA Quaterly In-house Journal of newsOando Group Jul- Sept, 2006. VOL. 5, NO. 3
UK Trade and Investment host Oando Energy Services in Aberdeen, Newcastle and London he UK Trade and Investment in content for providers of energy services by relationship with the organisation.” partnership with the NOF recently 2010. The opportunity therefore exists for UK Kamar Bakrin, MD/CEO Oando Energy Services TT organized a road show for Oando Energy companies to partner with reputable Nigerian comments, “Oando’s Energy Services business Services (OES) to meet with leading UK companies, like Oando for transfer of has migrated from suppliers and major contractors in the Oil and technologies and expertise.” managing supply chain Gas Sector in Aberdeen, Newcastle and London. function to also providing The first inward visit of this nature, the road show Joanne Leng, International Business o i l fields services is aimed at exploring UK/Nigeria trade opportunities in this sector.
During the visit, the OES team met with over forty companies including KCA Deutag, Subsea 7, Wellstream International, Sonsub (Saipem Subsidiary) and DUCO (Technip). Oando Energy Services, which currently operates four Product Service Lines (PSLs) with plans to expand to six PSLs by the end of the year, has identified mutually beneficial partnerships with leading UK Companies to further exploit trade opportunities in the existing and prospective PSLs.
Oando Energy Services is already in a strategic alliance with Halliburton Energy Services. The companies have been working together to (L-R) Mr. Kamar Bakrin, MD/CEO Oando Energy Services, Mr. Kevin Joseph, Executive provide first class integrated upstream oil Director Oando Energy Services, listening to the presentation of Mr. Edwin Bowles, UK services through the supply of drilling and Trade and Investment Manager at the UK Trade meeting in Newcastle. completions fluids and Security DBS drill bits to operators in Nigeria. Manager of NOF comments, “Nigeria is a priority to operators. With the consolidation of its existing According to Edwin Bowles, Trade oil and gas market for the suppliers in the UK. and expansion into other PSLs, Oando Energy Development adviser for Africa and Middle We see a significant amount of opportunities in Services is positioned to be the leading African East, “Nigeria is the leading region for foreign Nigeria for British companies and through integrated oil service company in the Gulf of investment in the Oil and Gas Sector, the support from NOF we will ensure British Guinea. Furthermore, with the Government’s Government has approved approximately $70 companies continue to capitalize on these Local Content policy and our track record as billion to projects over the next 6 years in opportunities. The NOF would like to thank the dominant indigenous oil service provider, the Onshore and Offshore Oil, Upstream, Oando Energy Services for the time and effort company, is the partner of choice for foreign Downstream and Gas projects. In addition, the in making the road show a great success and partnerships to drive the local content vehicle.” Nigerian Government has targeted 70% local look forward to developing a long lasting Gaslink Holds Seminar Contents
aslink, a subsidiary of Oando plc held • Gas Metering/Pressure Regulation and Project Synergy:The birth of the future - Pg. 2 a one day Stakeholder’s Technical Forum Remote Reading - Pg. 2 with the theme: “Natural Gas-Increasing • Plastic Pipes Technology and its Use GG Oando participates in the NSE/JSE Confer- Productivity Through New Technologies”. • Gas Generation, Sizing and Maintenance ence in Abuja / Q3 results - Pg. 3 • Boilers and Burners The event which held on Wednesday, October • Tips on Conversations and Combustion Oando Sponsored DPR, Major Marketers/De- 11, 2006 at the Protea Hotel, Oakwood Park, technology pot Owners AGM - Pg. 4 Lekki-Epe Expressway, Lagos was targeted at • Independent Power Plant (IPP) Power current and potential customers of Gaslink. options Oando Launches In-Support - Pg. 5 Various stakeholders in the Gas Industry from • Environment, Health, Safety & Quality Supply & Trading - Oil Price Drops - Pg. 8 within and outside Nigeria were also in (EHSQ) Issues attendance. Papers were presented by representatives of New Business Development Manager Ap- Clarke Energy, a leading worldwide Energy pointed - Oando Energy Services - Pg. 8 The Technical Forum, which had in attendance, Systems Company based in England offering international experts on Natural Gas a wide range of power generation solutions. As Gaslink Spends $23m on Gas Pipeline Expan- Transmission & Distribution, looked into the a ‘total solution’ provider of gas engine sion Project - Pg. 9 following: Social Diary - Pg. 11 Continued on pg 9
OandoNews EDITOR’EDITOR’ss NoteNote
s the year comes to a close, Our Company Owners Annual General Meeting as well as commenced LPG Oando Plc has continued to make giant strides supplies from its Sokoto plant. As usual Oando News was there AAin all its activities. to cover the event Our lead story for this edition is the participation of Oando Other interesting activities during the quarter was Gaslink’s Tech- Energy Services during the UK Trade & Investment Road Show nical Forum which had gas experts from around the globe in that held in Aberdeen, Newcastle and London. This was an attendance, Oando’s participation in the NSE/JSE conference oppourtunity for the company to meet with major players in the in Abuja, the appointment of a new Business Development man- Oil and Gas sector in the UK. ager for OES, and so on.
Oando Plc during this quarter, released its third quarter results All these articles/ events have been highlighted in this edition and the results highlight the Group’s strong performance in its especially for you. traditional and new business lines. Happy Reading! Oando Marketing sponsored the DPR/Major Marketers/Depot Project Synergy: The birth of the future
““…This is going to change our lives, especially the sessions that had taken place at the head-office and The Customer Care Manager from Oracle Dubai, way we work. If 10,000 fortune 500 companies have Apapa. Mohammed Owais was around from October 3-4th 2006 implemented this and it’s working for them, there’s to do a health check on the project. He met with absolutely no reason why it shouldn’t work for us. I The train moved to Kaduna on August 29th 2006 to members of the project team and consultants to ask urge you to join the train. You will instantly become a intimate staff in Kaduna lube plant, Kano, Sokoto and certain questions regarding the project. At the end of global player as a result of your participation” Mr. Maiduguri, who converged in Kaduna. The Chief the exercise, he passed a clean bill of health on the Wale Tinubu, Group CEO, Oando Plc. Strategy Officer, Project Manager and our consultants project, he did say there were areas in which the were on hand to provide answers to the questions project team needed to work on but thankfully these There is no better way to sum it up. Project Synergy posed by staff at both events. areas do not directly affect the well-being of the project is living up to its billing as the biggest thing and they are being worked on already. happening in Oando Plc today. From the planning Other kick-off events have been scheduled to hold in stages and now execution, there is a lot of promise in Abuja, Port Harcourt and Benin respectively. Meet the consultants terms of the effect this implementation will have on our work lives. Business Requirements Gathering They are from Global Technology Services (GTS), a This phase of the project entailed the documentations subsidiary company of Emirates National Oil Company Three months into the project, despite the barrage of of Oando’s business processes as at today. (ENOC), Dubai. ENOC has 54 subsidiaries and GTS challenges, we have also recorded considerable Functional team leads, in conjuction with their Heads is its IT division. progress. We have assembled a good team, of departments and Subject Matter Experts (SMEs) comprising team members from all the business did a marvelous job. Abdulaziz Salam – Project Manager with over 14 entities in the Group. We have created a project team years experience in ERP implementation. Oando’s location where the project team is housed and we Training implementation is his i5th ERP implementation. have also concluded the first training program; an The consultants organized a 2 day technical training oracle Demo Walk-Through training for all team for technical and functional staff on the project which Gaurav ThakurThakur: Trainer extra-ordinaire, he is fondly members. highlighted the technical architecture of Oracle and called “G.T” in the project office. He is the Senior system administration functions. Supply Chain Mgt. Consultant. Project Diary During the functional demo training, held at the Lagos Ramesh Subramanian:Subramanian: Finance consultant. Project Synergy began with a Question and Answer Resource Center, participants were taken through HR/ Session at Apapa terminal and the Head Office, where Payroll, Inventory, purchasing, accounts payables and Ramakrishnan Ramachandran: Snr. Finance staff had the opportunity to bare their concerns receivables, cash management, fixed assets and Consultant. regarding the project. The Chief Strategy Officer was order management modules. At the end of the day, available to answer all the questions. everyone expressed satisfaction that the application P. Santosh: HR/Payroll Consultant. would meet Oando’s requirements. Kick off Events Agarwal Vineet: Finance Consultant The Lagos Kick off event, which was held at the Eko Other training sessions called Conference Room Pilots L’meridian Hotel on August 10, 2006 had an (CRP) will be hands on, and will involve taking users Prabhu Ranjith: Supply Chain Mgt Consultant. through the application to perform the tasks they impressive would normally perform on a daily basis. The trained EDITORIAL TEAM turnout with Mirza Abid: DBA Consultant. users will in turn train other users. This concept is the GCEO called the train-the-trainer approach. There would be Editor and other Last Word at least two CRP sessions during the course of this Tokunboh Durosaro members of project. executive Over the next few months expect to hear more about Assistant Editors management the project as the team continues to work hard to Niyi Olowola Chart of Account (COA)/Set of Books inChart of Account (COA)/Set of Books build a foundation for the Oando of tomorrow. We will Okoh-Esene Wilson attendance. be carrying out our first Conference Room Pilot in Obinna Uzoma For any ERP implementation, the decision on the Also present November as we work for HR ‘GO – LIVE’ in Quarter Sunmbo Olajubu structure of the Chart of Accounts and Set of books was Desi one 2007. We have developed a robust role for our is arguably the most critical and important decision Contributors Lopez, change agents strategically located all over the to be taken. It is the bedrock upon which all other Tunde Olajide Oracle’s Vice country and we should start working with them on decisions’ relating to the implementation is built. Ayoade Adeniyi President for this in the next few days. We want to welcome Dabota Lami Shehu Africa. The Willie-Pepple to our team as she joins as an addition The Chart of Accounts is a list of all account names Anita Emerhor objective of Project Support Specialist. and numbers illustrating Oando’s organization the event Oando news is a quaterly publication by hierarchy. The COA is used to classify revenue, was to create I look forward to sharing more about the project as the Corporate Communications expenses, assets and liabilities in accordance with Department of Oando Plc. All correspon- a general we march towards our first ‘Go – Live’, thanks for an organization’s management structure, to ensure dence to The Editor, Stallion House (9th awareness your support. the appropriate people are responsible for the costs Floor) 2, Ajose Adeogun Street, Victoria about the Island, Lagos,Nigeria. that they control and allow reporting by different project and Cheers Website:www.oandoplc.com categories Email: [email protected] also to build on the Q&A Tunde Olajide All rights reserved. Materials in this Oracle Workshop / Project Health Check Project Support Specialist issue may be re-printed with due credit given to Oando News
OandoNews 2 OandoOando AnnouncesAnnounces 3r3rdd QuarterQuarter ResultsResults
ur results highlight strong performance from our traditional business lines and 30-Sep-06 30-Sep-05 Increase/(Decrease) the steady increase in contribution from OO N’ 000,000 N’ 000,000 % our new business ventures. In a bid to secure long term sustainable profit growth, the company Turnover 224,024 136,475 64% continues to tighten operational efficiency whilst intensifying growth in its diversified platform. Profit before tax and exceptionals 3,017 2,424 24%
Oando is well positioned to take advantage of Tax (Estimated) (694) (411) 69% the reform driven environment in Nigeria. The Profit After Tax quarter witnessed a substantial improvement in Profit After Tax 2,323 2,013 15% product throughput via hitherto underutilised Minority Interest 321 419 -23% retail assets, as a result of the commencement of operations of the petroleum subsidy fund. Attributable to Shareholders 2,002 1,594 26%
In the short term, we envisage significant Earning Per 50K share(Kobo) 350 279 26% earning contributions from Gas distribution and Upstream Oil services as we begin to Total Assets 23,364 23,773 -2% aggressively extract value from an expanded energy platform. Authorized Share Capital 400.0 400.0 0%
Number Of 50k shares issued and 572.3 572.3 0% Barring unforeseen circumstances, the Board of Directors expect the trend of sustainable profit fully paid up (Millions) growth to continue into the final quarter of 2006.
Oando Plc Participates in the NSE/JSE Conference in Abuja
ando Plc, the leading energy solutions with the Directors and Senior management staff lessons to be learnt by other companies seeking provider, and the first Nigerian of quoted companies, and was aimed at to list on either the NSE or JSE. OOCompany to be listed on the improving communication and aligning policies Johannesburg Stock Exchange was an affiliate and actions as major stakeholders in the During the conference, the Group Chief sponsor at the just concluded NSE/JSE markets. As Self-regulating organisations, the Executive of Oando Plc, Mr Wale Tinubu International Conference on the Globalization of exchanges are seeking partnerships with all delivered a presentation titled “Oando Cross the Capital Market. actors in the market for efficient and effective Border Listing: the Lessons Learnt”. In the paper, regulatory initiatives he looked at the corporate structure of Oando The 3-day conference held from Sunday Plc, obstacles that were encountered in the September 3, to Tuesday September 5, 2006 at The conference also afforded the participants company and how they were overcome as well the Presidentail Villa, Abuja and was declared an oppourtunity to look at the first outward as their future ambitions. Mr Tinubu spoke open by Chief Olusegun Obasanjo, President, secondary listing by a company quoted on the candidly about the rapid expansion of the Federal Republic of Nigeria. Nigerian Stock Exchange - Oando Plc, which company and the need for a larger capital base was a landmark transcation, with the attendant in order to support the expansion process of The Conference afforded the two leading stock Oando. This he added, led to the listing on the exchanges in Africa, an oppourtunity to interact JSE.
(L-R) Ms. Tokunboh Durosaro, Head Corporate Communications Oando Plc, Mrs Oredeji Delano, Group Head Legal Services, and Dr. Olaolu Mudasiru, DMD Vetiva at the NSE/JSE conference in Abuja.
3 OandoNews Oando Marketing
Oando sponsored DPR, Major Marketers/Depot Owners’ AGM
he Annual General Meeting was held on September 12, 2006 in Lagos. emanating therein TThereT were about 80 people in attendance with a view to including DPR officials led by Mr. Kuku, addressing them. Controller, Operations; Mr. Buraimoh, Head Depot Operations; Mrs. Odunuga, Head, Depot • We were able to and Jetty Operations, Lagos/Ogun State; Mrs. compare Akinkugbe, Head, Retail Operations, Lagos/ experiences and Ogun State and others. Also in attendance at interact with the AGM were guests from the major petroleum competition on marketing companies and depot owners operational operating in Lagos and its environs. demands.
Depot operators reviewed the operational challenges in the various depots and (L- R) Mr. Kuku, Controller Operations, Mrs. Odunuga, Head Depot organizations as well as the roles expected of and Jetty Operations Lagos/Ogun states and Mr. Wale Fatoki, the regulatory agencies like the Department of Head CSL, Oando Plc. Petroleum Resources (DPR) and Standards Organization of Nigeria (SON) in the development of the petroleum industry Oando Launches O to go franchise especially the downstream sector.
There were two presentations on the challenges convenience stores in Lagos facing major makers and the way forward. ando Marketing, Nigeria’s leader in managed by Commercial Facilitators Limited The Head, Customers Service and Logistics, petroleum marketing is set to take its (CFL) who have extensive experience outside Oando Marketing, Mr. Wale Fatoki presented a OOservice offerings to another level as it Nigeria in managing chain supermarkets and paper on “Problems with Products Importation launches O to go its retail convenience store grocery stores”. Speaking further he urged and Delivery in Nigeria”. The highlights of this franchise at its service station at number 166 Lagosians to take advantage of the O to go as paper are: Awolowo Road Ikoyi, today September 9, 2006. a convenient alternative to the long tiresome • Petroleum supply limitations The launch officially heralds the O to go brand drive to the supermarket; fuel in your car, • Problems faced by major marketers in which is opening simultaneously at five of its groceries in your bag. importation and delivery service stations located within Lagos, namely: Muritala Muhammad Way-Yaba, Apapa Road, • Government Agencies (DPR and others) Speaking further on the launch of O to go, Mr. Ebute Metta, Marine Road Apapa, Itire Ishaga • Financial Institutions (Banks) Frank Okeke, expressed delight at rolling out (Lawanson Surulere), Awolowo Road, Ikoyi. • Challenges ranging from documentation the first set of O to go outlets as a convenient to operational hitches. Oando’s chain of convenience stores is another alternative to long drives and hurried shopping • Short and long term solutions for value addition to Oando’s quest in remaining the “we all take time out to top-up our cars with fuel, improvement in petroleum products service leader, and also effectively engaging its it is only natural therefore that Oando in delighting processes. customers on the forecourts with new ideas, its customers, has provided a convenient, high innovations and service offerings to ensue quality franchise to cater for our on-the-move Also, a paper by the Head, Downstream customer loyalty in a one-stop shop type shopping needs” he stated that while the first Operations, entitled “Safety of facilities and atmosphere. phase of the O to go shops were being launched at 5 stations in Lagos, the long term product quality control in downstream goal is to open O to go stores in more Oando operations” was delivered by Mr. Kuku, O to go’s value proposition is: service stations pan-Lagos, and ultimately, Pan Controller, Operations ,DPR. • Guaranteed Quality of Products Nigeria. Members of the press from NTA, Guardian, • Competitive Pricing O to go is a franchise property owned by Daily Trust, This Day, Punch and Financial Oando Plc Standards were in attendance to cover the event. • Convenience and accessibility
Oando’s benefits from the sponsorship include • Wide variety of household, grocery and auto care products • This provided a sound contact platform for our personnel with regulatory agency Commenting on the introduction of the stores to ensure access to support and in Lagos, Chief Marketing Officer, Retail of understanding in our operations. Oando Marketing, Mr. Frank Okeke noted that with the recent introduction of the mega stations • A forum to express and explain our in Lagos, “Oando naturally moved to the next level in meeting its customers’ needs by rolling challenges at the depots and issues out a chain of high value convenience stores in O-to-go Store at Oando filling station, selected Oando service stations; to be Awolowo way, Ikoyi, lagos
OandoNews 4 Oando Launches In-SupportTM Inventory Management Product for Corporate Clients
n accordance with its strategy of exceeding only what is consumed over a specified period. customer expectations with innovative The storage facility will however be provided IIproducts and excellent services, Oando by the customer, with Oando assisting in the Marketing has introduced a new product, provision of auxiliary items. Oando In-SupportTM, to the market. The key objective of Oando In-SupportTM is to Oando In-SupportTM is a Vendor Managed improve the customer’s supply chain efficiency, Inventory (VMI) service that readily provides fuel which will enable the customers/clients to focus (Automotive Gas Oil (Diesel), Lubricants and on their core business functions without the Chemicals) at the premises of clients with distraction of day-to-day product supply issues. excellent support services. Benefits that will accrue to customers of Oando Mr. Tsola Barrow, Chief Marketing Officer, Commercial, Oando TM TM With Oando In-Support , payments for fuels In-Support include a reliable and excellent Marketing and other services is based on usage at agreed logistics system that will take care of delivery Other advantages of Oando In-SupportTM to intervals, while the cost for holding inventory is of all products to the customers’ plants and customers are: borne by Oando, since the customer pays for offices. • Reduced holding costs and enhanced Oando Commences Cooking Gas working capital for other uses. • Provision of a cushion during periods of Supplies from Sokoto Plant epileptic supply or scarcity. • Competitive prices of products. s part of its commitment to be the first discounts to ensure they make good point of reference in the marketing and margins from re-sale of the gas. • Operations based on world class AAdistribution of Liquefied Petroleum Gas, Environmental, Health and Safety (LPG), otherwise known as cooking gas, Oando • Industrial Customers: These are Standards. Marketing has commenced distribution of industries, hotels and schools with boarding • Excellent after sales support from Cooking Gas from its LPG Filling Plant in Gasau, facilities who use large volumes of cooking Oando’s marketing team. Sokoto State. gas. The gas will be delivered to their location at no extra cost. Where appropriate, Oando has already signed on several The plant, located opposite the Federal Oando will also provide storage facilities at multinational manufacturing companies to In- Government Girls College, Gasau, Sokoto State, the customers’ sites. Support TM. Companies like Cadbury Plc, has an installed capacity of 55 (Fifty-five) Metric Nigerian Breweries Plc, British American Tonnes, and will operate at 100 per cent installed • Retail Customers: Individual consumers Tobacco (BAT), Guinness Plc, and West African capacity. The plant is capable of filling over 500 who come to the plant to refill their cylinders. Portland Cement Company Plc (WAPCO), have cylinders per day. Buyers in this category will enjoy improved started taking advantage of this service. supply of cooking gas at reasonable prices. The Oando Marketing LPG TM They will also have their faulty cylinders Commenting on Oando In-Support , Mr Sokoto Plant is expected refurbished and enjoy excellent Tsola Barrow, Chief Marketing Officer- to service the market in customer service at the plant. Commercial, stated that “the introduction of the North Western region Oando In-SupportTM is another display of our of the country. This Also, Oando Marketings five retail unparalleled commitment to customer includes such cities as outlets near the Sokoto Filling Plant will satisfaction through innovative services at Gasau, Dutse, take advantage of the proximity to make Oando. We are conscious of the challenges Damaturu, Sokoto, Birin cooking gas available to consumers. companies face in getting fuels in a timely and Kebbi, Kebbi, and TM They are: seamless fashion and Oando In-Support Argungu. is a partnership that helps companies manage 1. Railway Crossing, Gasau, their inventory better and cost effectively”. Different categories of Zamfara State. customers will benefit 2. Ahmadu Bello Way Service Also commenting, Mr Ayo Ajose-Adeogun, from the services being Station, Sokoto Chief Operating Officer, Oando Marketing, rendered, namely: 3. Gasau Road Service Station, declared “At the beginning 2006, we made it • Distributors: Sokoto clear that our strategy for the year was to These are resellers 4. Sultan Bello Road Service continually add value to customers, thereby who can buy and Station, Sokoto increasing our sales volumes. continually add fill a minimum of 50 5. Argungu Service Station, value to customers, thereby increasing our TM cylinders from the Argungu, Kebbi State. sales volumes. Oando In-Support is a clear plant. Oando will shift from product marketing to service delivery brand such Commenting, Oando Marketing marketing. With this initiative, what we are distributors’ sale Chief Operating Officer, Mr. Ayo offering our customers is a complete ‘one-stop’ outlets at no extra Ajose Adeogun says, “The re- solution to their petrochemical supply cost. They will also launch of our Sokoto Plant is in line requirements. Our customers will now access enjoy technical with our unparalleled commitment to all their fuels, lubricants and chemicals from support services such as free delivery customer satisfaction at Oando. We are aware their premises along with several value-added service; replacement of leaking valves, of the gaps in cooking gas supply in the north- services.” refurbishment of old cylinders, and western part of Nigeria and this plant will TM free training. guarantee a steady supply of LPG to all Oando In-Support is a service product that residents of Sokoto and its environs. For the rest will enhance our customers businesses, thus • Commercial Customers: Independent of 2006, we will continue to enlarge our LPG increasing our share of customers’ purchases gas filling plants owners who buy in bulk from market presence and we expect our 8 (eight) volumes. This improves the consistency of our the plant. They will enjoy some level of plants across the country to significantly shareholder value delivery in a highly contribute to increased sales and profitability. competitive market, he added.
5 OandoNews OES UK Road Show
The UK Trade and Investment in partnership with the NOF recently organized a road show for Oando Energy Services (OES) to meet with leading UK suppliers and major contractors in the Oil and Gas Sector in Aberdeen, Newcastle and London. The first inward visit of this nature, the road show was aimed at exploring UK/ Nigeria trade opportunities in this sector.
Mr. Kamar Bakrin, MD/CEO Oando Energy Services making a Cross-Section of participants at the NOF/UK Trade meeting in presentation at the NOF/UK Trade meeting in Newcastle Newcastle
Mr. Edwin Bowles, UK Trade and Investment Manager making a presentation at the NOF/UK Trade meeting in Newcastle
(L-R) Mr. Kevin Joseph, ED, OES, Joanne Leng, Oil and Gas (L-R) Joanne Leng, Oil and Gas International Manager, NOF, International Manager, NOF and Mr. Edwin Bowles, UK Trade Mr. Edwin Bowles, UK Trade and Investment Manager, Mr. Kamar and Investment Manager Bakrin, MD/CEO OES at the dinner organized in respect of Oando Energy services in Aberdeen.
(L-R) Mr. Edwin Bowles, UK Trade and Investment Manager, Mr. Kamar Bakrin, MD/CEO OES sharing ideas with Mr. George Raffenty, Head of NOF in his office
(L-R) Mr. Kamar Bakrin, MD/CEO OES, Mr. Tom Campbell, CTC (L-R) Mr. Colin Black of Caledus,in a discussion with Mr. Kevin Marine, and Sue Buckley of Geolink Joseph, ED, Oando Energy Services
(L-R) Mr. Colin Black of Caledus in a discussion with Mr. Sola Falodun, BDM, OES
Cross-section of guest at the dinner organised in respect of (L-R) Mr. Steven Moirhead of Global Marine Services with Mr. Oando Energy Services in Aberdeen. Sola Falodun, BDM, Oando Energy Services
OandoNews Gaslink Technical Forum
Gaslink, a subsidiary of Oando Plc, held a one day Stakeholders Technical Forum with the theme: “Natural Gas-Increasing Productivity Through New Technologies”.
The event which held on Wednesday, 11th of October, 2006 at the Protea Hotel, Oakwood Park, Lekki-Epe Expressway, Lagos was targeted at current and potential customers of Gaslink. Various stakeholders in the Gas Industry from within and outside Nigeria were also in attendance.
The Technical Forum, had in attendance, international experts on Natural Gas Transmission & Distribution.
Bolaji Osunsanya, MD Gaslink giving his welcome address at Rene Gardsvig, Flonidan making his presentation at the event the forum
(L-R) Mr. Akintemehin, NGC, Bolaji Ososami (Xcel Energy Ltd.) and Bolaji Osunsanya, MD Gaslink
(L-R) Lere Odusote, BDM, Oando Power with a participant at (L-R) Russell Grady, COO Gaslink, Rene Gardsvig, Flonidan, the event and Bolaji Osunsanya, MD Gaslink
(L-R) Haydn Rees and Bill Ball, Clarke Energy in a discussion with Russell Grady, COO Gaslink and Bolaji Osunsanya, MD Gaslink (L-R) Mr. Bolade Soremekun, Alternative Energy Providers and A cross-section of participants at the forum Dr. Emmanuel Fmavbere
(L-R) Tunde Baba-Agba, RM Gaslink, Kayode Bamisaye, FA The representative from Clarke Energy in ia discussion with some (L-R) Rene Gardsvig, Flonidan and Arthur Hubert, Wavin Gaslink, with Sunday Asade, Cadbury Plc. participants at the forum
OandoNews Oando Energy Services
Oando Energy Services appoints new Quick Update Business Development Manager Drill Bits Drill Bits PSL recorded a superb performance with the n the drive to further strengthen its Management programme was with Shell Petroleum Development successful execution of a contract for the provision of team and to achieve its goal of being Africa’s Company in Warri in 1990-1991; where he was fixed cutter bit series for a major operator in the Niger IIleading indigenous integrated energy services employed as a trainee petrophysicist. Delta between August and October 2006. company, Oando Energy Services has announced the appointment of Olusola Falodun as its Business Olusola’s over The superior performance of the Bits fastened the drilling Development Manager. fifteen years well process thereby minimizing non-productive time and rounded career saved rig days - with an offshore rig rate in excess of Under this new role, the Mr. Falodun will be began in 1991, $380,000 per day, this translated into significant cost responsible for developing the most effective when he was savings to the delight of the customer. strategies, business plans and budgets for growing employed by Oando’s Energy Services’ business by seeking new Petrolog Nigeria As a result of this feat, the happy customer assured Oando energy services opportunities within and outside Ltd, as a Mud (Security DBS bit) of continued consideration in their Oil Nigeria. Logging Well programmes going forward. Engineer. In According to the Managing Director/CEO of Oando 1994, he was Congratulations to the Drill Bits PSL team led by Joseph Energy Services, Mr. Kamar Bakrin, “we have set a promoted to Omokwale. definite expansion strategy for our existing/new Mr. Sola Falodun, BDM, Base Supervisor Product Service Lines which requires superior human Oando Energy Services Drilling & Completion Fluids where he led a resource to extract optimal value. With a proven track record in various capacities in Nigeria, Saudi Arabia team of 25 field staff and oversaw contracts, ensuring OES, in conjunction with her technical partner, will and the United States, we are confident of Sola his team met management targets. In 1997, he moved commence the contract for the supply of Drilling & Falodun’s ability to exceed expectations with regards to Baker-Hughes Inteq. Nig. Ltd as the Lead Engineer Completion Fluids to the Chevron Joint Venture. The to managing existing business relationships and in Field Services, from there Olusola went to Halliburton contract valued at $37m will commence on November 1, developing new ones”. in 1998 where he stayed until June 2006. He was 2006 for an initial term of 2 years. promoted several times during this period, from field Below is the profile of the new appointee: engineer in 1998-1999, to senior field engineer in 1999- The PSL is also positioned to take advantage of an 2003; and finally Account Manager/Business anticipated upswing in drilling activities in Q1 of 2007. Olusola Falodun: Business Development Manager, Development from 2003 to 2006 before joining Oando Oando Energy Services. Energy Services. Other PSLs Mr. Falodun is the Business Development Manager for Oando Energy Services. He assumed this position Olusola attended several training programmes and has OES will continue to pursue strategies to consolidate its in July 2006. He completed his first degree in Chemical authored several papers including “Optimal Horizontal Oil Well Cement and Upstream Fuels businesses in line Engineering (1990) at the Obafemi Awolowo University, Wellbore Placement Using New Drilling Technology in with its catchphrase – ‘Fix the business and Grow (formerly The University of Ife, Nigeria). His the Niger Delta” which was delivered in South Africa at the Business’ compulsory one year National Youth Service the World Petroleum Congress, September 2005.
Oando Supply & Trading And Oil price drops n a dramatiac twist, Oil prices began to decrease economic downturn (and therefore sharply lower oil • Iran nuclear standoff - Continued concerns at the end of the summer of 2006, closing below demand). about Iran raised the oil prices II$66/barrel on September 11. Reasons for the recent 2002 - OPEC cuts Israel and Lebanon war. price decreases have included easing tensions with • Iran, ample supply and the lack of hurricane activity Prices then increase on oil production cuts by At as Oando news production time, oil prices had (thank God!) in oil-producing regions of the Gulf of OPEC and non-OPEC at the beginning of 2002, began its steady decline, closing below $66/barrel Mexico. plus unrest in the Middle East on September 11. Speculations are the oil price may even fall below &60/barrel in October. However, many oil traders still feel that oil supplies 2003 -Venezuela and Iraq invasion might be reduced in the coming months. One of the most important is growing turbulence in the Middle Continued unrest in Venezuela and military action in East, the world’s largest oil-producing region. The war Iraq causes prices to rise. in Iraq, Iran’s nuclear programme, and internal instability in Saudi Arabia could all lead to a dramatic 2005 - Hurricane Katrina fall in the supply of oil. Outside the Middle East other Hurricane Katrina had a major impact on oil prices - oil producers with their own issues have caused worry Gasoline prices soared after the closing down of the for investors, such as the strikes and political major pipelines connecting the gas of the Louisiana problems in Venezuela and potential instability in West region to the entire East Coast. Africa. 2006 – Multiple factors Below is a historical summary of oil price fluctuations: 2001 – 9/11 • Violence in Nigeria - Hostilities in Nigeria alone have caused a supply disruption of Oil prices decline sharply following the September 675,000 bbl/day. 11, 2001 terrorist attacks on the United States, largely on increased fears of a sharper worldwide • North Korea missiles launch - geopolitical tensions
OandoNews 8 Gaslink
Gaslink Nigeria Limited Spends $23m on Gas Pipeline Expansion Project
aslink Nigeria Limited a subsidiary of Bank Anthony Way, Ikeja. By 2004, Gaslink’s planned development of an IPP for the Murtala Oando Plc has concluded plans to pipeline network was further expanded by an Muhammed Airport, Lagos, Lagos State Water GGcommence the third phase of its gas 84 kilometre distribution line designed to deliver Corporation and a 500mw embedded power pipeline expansion project in Lagos State which a throughput of 65mmscf/d through Ojota, Isolo, plant in Ijora. on completion will deliver 1.809 million standard Amuwo Odofin, Ilupeju, Matori and Isolo. With cubic feet of natural gas to the Apapa industrial this, Gaslink has developed an extensive In the near future, Gaslink plans to extend its area (mmscf/d). The expansion project tagged pipeline network covering the major industrial business beyond Lagos State, to other parts GLIII (Greater Lagos three) will gulp a projected areas in Lagos State. of Nigeria and indeed, West Africa. Thus, $23 million in direct investment. preliminary work has already reached various Managing Director of Gaslink Nigeria Limited stages in Calabar and Abuja, while further In 2001, Gaslink embarked on a phase pipeline (GNL), Mr. Bolaji Osunsanya comments, the positioning itself as the preferred Local expansion drive that witnessed the construction expansion project which began in April 2006 will Distribution Company (LDC) for the West of a 11.2 kilometre pipeline network with a see the construction of a 38km pipeline and is African Gas Pipeline (WAGP) that will transport capacity to deliver 15mmscf/d from the Nigerian expected to last for about six months this will natural gas from Nigeria to Ghana, Togo and Gas Companys City Gate at Ikeja through Oba significantly improve GNLs capacity to deliver Benin; the WAGP is currently under Akran, Lateef Jakande and Acme Road all within increased volumes of gas to its customers construction. the Ikeja industrial scheme. Following the especially within Tin Can Island and Apapa successful completion of the first phase of its industrial Scheme. Gaslink has also concluded Oando Plc, the leading integrated energy expansion, the company commissioned its Ikeja arrangements with relevant agencies to supply solutions provider owns a 52% controlling stake 1B gas line with a capacity to deliver 5mmscf/d gas to some forthcoming key projects to be in Gaslink Nigeria Limited to companies within Oregun through to Mobolaji embarked on in Lagos State, such as the
Gaslink Holds Technical Forum
Continued from cover page famous specialists in boiler systems (Steam Commenting on the technical forum, the Boilers, Hot Water Boilers and Boiler Houses Managing Director of Gaslink Nigeria Limited, Components) of all sizes and performance Mr. Bolaji Osunsanya said “Gaslink has brought classes. together experts in the gas industry to further generation and gas management, Clarke educate end-users of gas on latest technologies Energy has an unrivalled quality of product and in use today”. service performance. Mr Osunsanya further added that end users of Others companies who presented papers and Oando Power, a subsidiary of Oando Plc, is gas will benefit tremendously from the gathering supported the forum include: actively pioneering private sector participations as it has open them to a whole new world of FLONIDAN in power solutions. opportunities in terms of knowledge of new products and services available within the global gas industry and how global best practices can Flonidan, a company based in Denmark. Their wav n ensure better gas usage in various applications. core business comprises the development, design and sale of products for the gas, water Wavin, Netherlands is Europe’s leading supplier Gaslink Nigeria limited, a subsidiary of Oando and heating market. of plastic pipe systems and solutions. Wavin Plc, is an indigenous company established to also provides integrated above and below promote gas distribution and utilization in OOS ground solutions for water supply, sewer, Nigeria. The company is operating a 20-year INTERNATIONAL The Boiler Company drainage, infiltration, surface heating and cooling, Gas Sale and Purchase Agreement (GSPA) with soil and waste and last mile telecom. the Nigeria Gas Company. Gaslink is the Loos International of Germany, who are world- pioneer and one of the few companies in Nigeria involved in the piping and distribution of natural gas to industrial, residential and commercial consumers.
Oando Plc, Nigeria’s integrated energy company, whose primary businesses include Petroleum Marketing, Supply & Trading, and Natural Gas distribution, Power, Energy Services and Exploration and Production is listed on both the Nigerian Stock Exchange (NSE) and the Johannesburg Stock Exchange Limited (JSE).
Flour Mills Natural Gas Power Plant a customer of Gaslink
9 OandoNews Oando Power OandoOando Power TheThe Role Role ofof CaptiveCaptive Power Power
espite the commissioning of a number Captive Power refers to generation from a unit Oando Power’s Business - Generation and of Generation Plants by the Federal set up by industry for its exclusive use. Distribution of Electricity Government of Nigeria, there is still a DD Power shortage is a severe problem and power DD Industrial sector is one of the largest shortfall in electricity. As the gestation period is a very important input for any industry. for large power projects is long, Nigeria will be consumers of electrical energy in Nigeria. Inadequate supply of power can reduce the able to complete very few projects in the near However, a number of industries are now production period and thus affect the production future and therefore face huge shortage of increasingly relying on their own generation volume for the industries. Thus industries are power. (captive and cogeneration) rather than on grid supply, primarily for the following reasons: going for captive power as an alternative source There is a need to open an alternative route other of energy so that they can hedge against the than Private and PHCN’s (Power Holding • Non-availability of adequate grid uncertainty of not receiving adequate electricity supply supply.
Also in some industries the captive plant is used for Power Electricity Plant / Industry generating both steam and Plant electricity. (MW) The cost advantage due to this dual
Company of Nigeria Plc) Generating • Poor quality and reliability of grid generation makes the captive power plant Companies, where the industries themselves supply economically viable. will be interested to meet their own power As a result, the captive potential has been demand. Captive Power Plants offer such an Oando Power poised to capture this opportunity increasing over the years and it is more than alternative. The captive power plants of in generating and supplying power to single likely that nearly 30% of the requirements of industries may be allowed to sell their surplus customers in their premises. the industrial sector are met from in-house power, if any, to the Grid, on a remunerative tariff, generation. Oando Power’s Captive Structure as per mutually agreed terms. Setting up of captive power plants would quickly add to the Industries representing primary producers of Oando Power is positioning to play as a generating capacity in the country. Small power infrastructure material such as aluminum, vertically integrated power company with production is an important ingredient of private cement, fertilizers, iron & steel, paper, and interests in both generation and distribution sub- power policy in a number of countries. sugar have significant captive capacity to meet sectors. Our execution strategy is to focus on Captive Power a significant part of their energy requirements. captive opportunities in the near term while remaining engaged in exploring distribution and non-captive opportunities.
Gas Fuel Supply Contract Nigeria Limited A subsidiary of Oando Plc
Power Industrial Project Power Plant Power Developer Purchase Customer Financing Agreement Management
Engine EPC Contractor Manufacturer O&M Contractor Oando Power’s Project Structure for Providing Captive Power
OandoNews 10 SocialSocialSocial Diary
Little did we know that that night, Chris Imorkhuedes sendforth Segun Oladele’s Baby It had already begun, on August 11, 2006 But Miles apart are we now, T My friend and colleague Truly a 20- Siblings will never stroll for a 20-Season This same conquest has taken us place in the little cycle it rules Line on Line, precept on precept A lot has happened but a few was told;
Of the 7 retributive laws of Kamar (Honour your Master’s Wealth), You shall be duly paid, whether good or evil Engr. S. Giwa, Head Engineering giving Our western dues and Conducts, his remarks at the dinner Big Brother - is watching (Casuals only of Fridays)
ISO-Merization - Ubong be praised Keep your procedure plain, Your records tight, thou shall not be booked!!!
Energy and Synergy Revolution Gas-B!!! Gas-link dey try… Pricilla Oluwadarasimi Oladele, Segun’s (IT Dept) lovely baby girl was born on Of Failed Bids & Forceful Bidders.. Chris in a jolly mood at the dinner wednesday, 8th October this year. Nija Exchange & Conquest of the South Exchange We have made history, we have broken history Time will forgive any error, * For ISO-Standout, Birthday Boy But no in-action shall be forgiven * For your Stoop to conquer against all odd * For you calm existence in trouble waters… Lighter ignited for those departed You are remembered… A thorough salute for seniors retired Even if Okoduwa and other forget, I will not Dead visions and Divisions I still remember… When the appetite is enlarged A handful Morsel of Wealth Here is the future (if not longer for me) Would hardly appease the expectation of Wise For those that will come after, Investors That I might never know but will know me… The need for a Compact insurrection is inevitable For History will always remind them As I have tried to remind you today… So the Prime Branding and Branches Wilson Okoh-Esene’s (CC Dept) boy, Where engagers were engaged in the their rules of My dear Okoduwa ISammy celebarted his first birthday on engagements the 2nd of August, 2006 And severer were severed in their sieve of severance Ayoade Adeniyi IT-Dept SO FARAR… Our Western tactics and Trading Onne Proudly West African or Proudly Western? Though it has been so far …, See what has become of our O-&-O Spectrum of Even it’s been a while, Okoduwa!!! Wonders… But do you still remember? Truly sometimes I am beleaguered in the riddle Sumbo Olajubu’s baby Do you remember at all? Do you? That I must evolve even before the last formation. The more things change, the more they really I remember… change… I remember the day we stood like a fence un-mounted That starry night by the bar beaches as the Ocean I have also dined with kings and men alike, viewed In this little kingdom and creek And we anticipated with great apprehension, People that I don’t even know were my brothers… Wondering what shall become of this dotard Stallion Hallie gave a shoulder to O-Energy-Service Wooed by Basket Mouth and Cool & His Gang We reaped a gold mine trading with barges and boats And right before our eyes Backs were bent in these back-loading sequels Like a despised Unicorn heading back to Saturn, Ask Mobil they will tell, Old Stallion ascended way high, reborn a spectrum Shell or Chevron will also testify … of gyring rings OANDO – THE FUTURE… And heaven bless you, My Dear Onne!!! If your good works are hastily forgotten, Joel Olajubu, Sumbo Olajubu’s (CC O boy… what a night, I will remember you!!! Dept) Baby Boy, was born 1st of July, A mystery chucked beneath my mortal skins For the three of your works and for four, 2006 Longing for what the future will be or bring, I will not forget you!!!
11 OandoNews