Oando Hold's 31st Annual General Meeting EHSQ ... - Oando PLC

Oandonews
A Quarterly In-house Journal of Oando Group
Apr - Jun, 2008. Quarter 2
Oando Hold’s 31 st Annual General Meeting
As part of its corporate
governance culture,
Oando PLC organized
and held its 31 st Annual General
Meeting on the 27 th of May, 2008
at the Nigerian Law School,
Victoria Island, Lagos.
During the AGM, the annual
financial statement of the
Company was presented, the
Report of the Audit committee
was received, the dividend of N6
payout to shareholders was
recommended by the directors
and approved by the
shareholders. Also an additional
payout of one share to every 5
In line with the 2008 Corporate
objectives of enhancing and
further entrenching an
Environmental, Health and
Safety Quality culture in its staff,
Oando PLC held its maiden
edition of its EHSQ week which
commenced in Lagos on the 9 th
of June and ended in Port
Harcourt on the 13 th of June,
2008.
The theme of the EHSQ Week
was “PROMOTING EHSQ
shares bought was approved by
the shareholders.
A new director was also elected
to the board. His name is Mr.
Navaid Burney. He is the
Managing Director of Emerging
Capital Partners (“ECP”), a
leading Africa-focused private
equity fund manager based in
South Africa.
With the Group’s recording of
huge financial growth in 2007, it
aims to increase its revenue
through the Exploration and
Production business, Gas and
Power as well as Energy Services
business.
EHSQ Organizes Safety Week
CULTURE: A recipe for an
incident free environment.”
The event was organized to
sensitize all stakeholders on the
right attitude to work and to
ensure continuous improvement
in the areas of safety of personnel
as well as maintaining the
integrity of company assets,
preserving the environment and
sustaining the good image of the
company.
Dr. Oyet Gogomary, Head EHSQ, Oando PLC speaking during the ‘Oando EHSQ Week’ at the Lagoon
Restaurant, Lagos. With him are Mr. Wale Tinubu, Group Chief Executive (right) and Dr. Chris
Onuoha, COO, Oando Terminal and Logistics (OTL).
(L-R) Major General Mohammed Magoro (Rtd), Chairman Board of Directors, Mrs. Oredeji Delano
and Mr. Omamofe Boyo , Deputy Group Chief Executive at Oando’s 31st th Annual General Meeting
held in Lagos on Tuesday, May 27, 2008
Key topics that were discussed
bothered on Accidents on the
Road, Managing Stress at Work,
Standardization and its
relevance, Defensive Driving
and a host of other thought –
provoking topics.
There was also the presentation
of certificates and gift items to
those who contributed
immeasurably to an incident –
free year.
The week long programme was
kicked-off at the corporate Head
Office in Lagos by the Group
Chief Executive, Mr. J. A.
Tinubu. Other external
dignitaries that were
represented include the
Commissioner for Environment
in Lagos State, Dr, Muiz Banire,
The Head, Safety and
Environment, DPR, Mr. G.E.
Nwachukwu, Dr. John Akanya,
the DG of SON and several
other speakers.
It is worthy of note that the EHSQ
Week coincided with the global
recognition of the World
Environment Day which was
held on 6th June, 2008. It is
therefore good enough that
Oando PLC, a front line
environmentally compliant group
and a leader in the current
initiative for cleaner environment
through the use of gas as
alternative source of power has
chosen same period to
celebrate her EHSQ successes.
Here is wishing you an incident
– free year!
Content
Human Capital Management
Participate in Career Fair - Pg. 2
Oando Marketing Tour Facilities
- Pg. 3
Oando Insecticide Debuts
- Pg. 4
Oando Gas & Power Takes Gas to
Tin Can Island - Pg. 5
Photo News - Pg. 6-7
OEPL Donates NYSC Quaters to
Host Communities - Pg. 8
OEPL Sign GMoU with Host Communities
- Pg. 9
Corporate Governance - Pg. 10
Social Diary - Pg. 11
OandoNews

EDITOR’s Note
Interesting how soon H1 seemed to
have wrapped up! More interesting
was the last quarter of the half year,
Q2 that is. In it Oando held its 31 st
Annual General Meeting (AGM) in
Lagos, where it declared a dividend
payout of N6 to shareholders. And
even an additional bonus of 1 to every
5 new shares bought! In addition to the
story is an exciting photo page on the
event.
The cover story also includes Oando’s
2008 edition of the ‘EHSQ Week’. The
event was organised to ensure
continuous improvement in the area of
safety at work.
From Oando Marketing, is the story on
the companywide facility tour by a
team selected from various Business
Units at the Head Office. The all
enterprising entity also debuts with the
new ‘Oando Insecticide’ - the sweet
fragrance and potent weapon
fashioned against all domestic insects.
Oando Gas and Power recorded
another milestone by laying pipes
across the Liverpool River to ensure
gas supplies to industries on TinCan
Island. While Oando Exploration &
Production continued to demonstrate
its commitment to community
involvement with the donation of a twin
block of flats for Corp members and a
giant haulage wooden boat to OPL 278
host communities. OEPL also signed
a Product Sharing Contract agreement
and Global Memorandum of
Understanding on OPL 236 with
Nigerian National Petroleum
Corporation (NNPC) and host
communities.
Q2 was not all work while it lasted as
staff had a big beach party to mark
the end of the fisrt quarter. The
excitement is captured on our photo
page for your reading pleasure.
Meka
Enjoy.
Oando Exhibits at LBS Career Fair, , Lagos
...Attends Recruitment Summit in London
Lara Adio, HR Business Partner, Human Capital Management educating a visitor to Oando’s Stand
at the 2008 Lagos Business School (LBS) Career Fair, held in Lagos.
Visitors to the Oando stand at the event
The Lagos Business School,
in its customary way
organized its Career Fair in
Lagos on the 7 th May, 2008 at the
Pan – African University, Ajah.
Oando was one of the
participating companies and its
objective was to hunt talents that
would support its business. A
large number of graduating
students stormed the Oando
Exhibition stand with varying
questions for staff present at the
Career Fair. Lara Adio and Lawal
Sade provided answers to
questions fielded by the
students.
During the same month, the
largest African recruitment event
in the world, the Sixth Careers in
Africa Recruitment Summit in
London, took place on 23-25
May 2008. The Group Head HR,
Mr. Akin Ayoola attended the
event.
More than 1,500 African
graduates and professionals
residing across Europe and
Africa were selected and invited
to attend the Summit, chosen
from over 14 000 applicants.
Over 3000 interviews with senior
business representatives from
51 participating companies
amongst which is Oando PLC
took place over the course of the
event, in addition to company
presentations and informal
networking sessions.
Candidate feedback proves that
participating in a Career in Africa
Recruitment Summit is a unique
opportunity for skilled
professionals to gain exposure
to senior executives from
multiple organizations in one
location to successfully secure
their next career move.
One of the remarkable
testimonials alluded to was
made by Mr. Akin Ayoola, Group
Head, Human Resources. He
said “An eye opening
experience regarding the
breadth and depth of talent
available. The organization was
impeccable.”
As a company driven by
excellence, Oando PLC believes
strongly in attracting and
retaining the best brains in their
various field of endeavor that
would complement it in
implementing its intelligent
business strategies.
EDITORIAL TEAM
Editor
Meka Olowola
Assistant Editors
Femi Adeyeye
Sunmbo Olajubu
Odion Aleobua
Contributors
Bimbo Okoya
Samuel Onyenwe
Toyin Araromi
Graphics/Layout
Rotimi Jenfa
Editorial Adviser
Tokunboh Durosaro
Oando news is a quarterly publication by
the Corporate Communications Department
of Oando PLC. All correspondence to The
Editor, Oando PLC, (9th Floor)
2, Ajose Adeogun Street,
Victoria Island, Lagos,Nigeria.
Website:www.oandoPLC.com
Email: oandonews@oandoPLC.com
All rights reserved. Materials in this
issue may be re-printed with due credit
given to Oando News
OandoNews 2

Oando hosts Students of Lagos State University
On the 27 th of April, 2008
the Human Capital
Management (HCM)
team hosted 400 level students
of the Lagos State University,
Jibowu Campus on an industrial
visit. The visit was facilitated by
the Oando Corporate Social
Responsibility unit as an
opportunity to educate eternal
stakeholders on the unique HCM
structure of Oando PLC.
The students of the Lagos State
University were led by their
coordinator, Mr. M. A. Oladepo
Their main focus was on
understanding the Oando HCM
structure as the students major
in Human Relations and
Personnel Management with
hopes of being employed as HR
managers or officers with
national or Multinational
organizations in Nigeria. The visit
was a graduation requirement
and part of curriculum of the
University.
The HCM team was led by
Maureen Okoro- Sokoh and Lara
Adio and they gave a
presentation detailing the
current HCM structure and the
unique introduction of the
Shared Services concept. They
also gave practical insights into
the fundamental elements of
Maureen Okoro-Sokoh, Manpower Resources Manager (left) and Lara Adio, HR Business Partner
(2 nd left) receiving 400 level students of Human Relations and Personnel Management, Lagos State
University (LASU) during their visit to Oando in April, 2008.
HCM while providing
clarifications to the students. A
general overview of the Oando
organizational structure and the
Corporate Social Responsibility
concept was provided by
Abimbola Okoya, Corporate
Social Responsibility Manager.
Oando Marketing Tours Facilities
Some of the Oando Management Staff members on the facilities tour
Oando Marketing Limited
(OML) in its bid to
assess the state of its
infrastructure and the state of
preparedness of some of its
ongoing projects such as the
Port Harcourt terminal upgrade,
in May 2008, embarked on a
field trip of its installations. This
action was considered important
as it provided an opportunity for
Head Office team to get first
hand information about the
challenges faced by the regional
team in the respective locations.
The visit also provided
opportunity to achieve the
followings;
• Reinforce the need for the
various Human Capital
Management (HCM)
initiatives i.e.
Performance Objectives,
360° Feedback,
Performance Review, etc.
• Clarify any challenges in
the usage of the
documents.
• Highlight various Human
Resources (HR) benefits
open to members of staff.
• Obtain feedback on all
issues affecting quality of
performance (as an
individual or group).
The visit took the touring team
to facilities in Kano, Kaduna,
Abuja, Port Harcourt, Benin and
Apapa. Members of the team
were drawn from various
business units such as Human
Capital Management,
Environment Health Safety
Quality (EHSQ), Engineering,
Corporate Communications,
Finance, IT, Terminal and
Logistics and Customers Care
Unit (CCU) to assume an allstakeholder
composition.
The team inspected the facilities
in the Kaduna Lubes Plant (KLP),
the Kano Warehouse, (all in the
Northern region of the country),
Benin Warehouse, PH Terminal
(Southern region of the country)
and Apapa Terminal in Lagos.
After the tour, a discussion
session was held with members
of staff in the region with the
Group Head Human Resources
(GHHR), Akin Ayoola setting the
tone for the one to one
discussion with a PowerPoint
presentation on HR supports.
This was followed by a question
and answer segment where
various questions about the
business were asked by the
team from Head Office with
answers provided by the
appropriate business heads.
The very interactive fora created
an atmosphere for free
expression. This was intended to
encourage safe discussions on
any issue affecting individuals or
the business with the overall
objective of getting better quality
of service delivery from
members.
The relevance of the field team
was also highlighted in the
cause of the meeting as they are
the major interphase between
the customer and the head
office. This gesture was warmly
welcomed in all locations visited.
The sessions were wrapped up
by Oando Marketing’s Chief
Operating Officer (COO), Mrs.
Lara Banjoko who charged the
field team to recognize how
important they are to the
business. “You are probably all
the customer knows about
Oando. We at the head office are
there to support you. However,
there is nothing we can do if you
don’t let us know on time
whatever challenges you are
facing. I however promise you
that utmost priority will be given
to all supporting needs brought
to our notice and I do hope you
will reciprocate by doing your job
with greater passion”.
3 OandoNews

Marketing
On Thursday, May 15,
2008 at the Boardroom
of the Head Office, in
Lagos, Oando Marketing (OML),
Nigeria’s leading marketer of
petroleum products, and a
subsidiary of Oando PLC,
formally introduced into the
Nigerian market, the all-new
Oando insecticide.
The move was OML’s strategic
step to diversify its product line
and further consolidate it’s Non-
Fuel Revenue earnings.
The very attractively packaged
product has been designed with
the following features:
• Kills all domestic insects
(including mosquitoes,
cockroaches, bugs, etc)
• Human and
environment-friendly
properties
• Non-irritant
• Pleasant Lemon
fragrance
“Oando Insecticide” Debuts
• Attractive packaging
Commenting on the new
product, the Chief Operating
Officer, Oando Marketing, Lara
Banjoko, said, “In our usual way
of meeting and exceeding
customer expectation, we have
formulated an effective product
against all domestic insects
including mosquitoes and other
disease carrying insects (flying
or crawling). This is our way of
supporting Nigeria in achieving
the objective of Millennium
Development Goal of
eradicating killer diseases such
as malaria in Africa”.
The Oando insecticide is
produced for Oando Marketing
by Quimicas Oro, a Spanish
company that manufactures
high quality domestic cleaning
products, insecticides,
fungicides and herbicides as
well as liquid detergent. The
company has a reputation for
producing effective
environmental friendly products
and is ISO 9002 certified by the
Bureau Veritas Quality
international.
The insecticide has been
certified by the National Agency
for Food and Drug
Oando Marketing Trains Commercial
Lubes Customers
Administration and Control
(NAFDAC) as containing no
harmful properties.
As part of the marketing push for
the product, a complimentary
gift of a branded pen was given
to all customers who bought the
product from any of our service
stations as an introductory offer.
(L-R) Lara Banjoko, Chief Operating Officer, Oshai Michael, Chief Marketing Officer, Oyet Gogomary,
Head, EHSQ and Folami Abubakar, ED Finance at the launch of the product.
The early part of 2008 was
for the Lubes Department
of Oando Marketing, a very
busy one indeed. The team
engaged their Vendor Inventory
Management (VMI) customers in
Oando product trainings
nationwide.
The exercise was designed for
the direct users of Oando
Lubricants such as the
Engineers and Technicians
working in clients’ employment.
Their procurement departments
were also invited to gain deeper
insight into the products they buy
for their companies from Oando.
The trainees were educated on
Oando lubricants’ composition,
qualities and the machine type
and temperatures ranges the
lubricants can be used on.
The objective of the training was
to ensure that users have clear
understanding of the qualities,
composition, application and
uses of the lubricants that is
marketed to them.
The company which benefited
from the exercise includes:
• Guinness Nigeria PLC
Ogba, Ikeja, Lagos
• Lafarge Cement WAPCO
Nigeria PLC, Sagamu in
Ogun State
• Borni Prono, Lagos
• Chisco Motors
• Emerite, Enugu
• 7Up, Enugu and Kaduna
• E k s i o g u l l a r i
Constructions, Kaduna
• Gilmore, Abuja
• Eternite Nigeria Limited,
Sapele, Delta State
Cross section of participants during the training session held in PHCN, Sapele
Group photograph of participants at the Eternite complex, Sapele
OandoNews 4

Gas & Power
Oando Gas & Power Takes Gas to Tincan Island
Industries on the Tincan Island,
Lagos are now positioned to
access natural gas as Gaslink
Nigeria Limited - a subsidiary of
Oando Gas and Power (OG & P)
announces the completion of gas
pipeline expansion through the
Liverpool River to the area.
The completion of the new pipeline
section as an addition to the existing
infrastructure has resulted in a gas
pipeline coverage of all the major
industrial areas of Lagos State, with
a total pipeline network of 99.4km.
The expansion has now made gas
available to the following areas:
• Ojota, Maryland
• Obanikoro
• Iganmu, Alaka
• Wharf, Apapa, and
• Amuwo Odofin
Ikeja and its environs have been
connected since 2001.
The expansion is expected to help
cut expenditure on power supply
by 50% for businesses in the
industrial area.
Meanwhile, the integrity of the
pipelines has been subjected to the
rigorous hydrostatic test as required
by the industry safety standards.
The successful conduct of the test
has therefore affirmed that the new
pipelines were constructed in
conformity to international standards
and has surpassed the highest
safety standards for inhabitants and
properties around the facilities.
Commenting on this event, Mr. Bolaji
Osunsanya states; “We have taken
steps to make gas available to
industries on the Tincan Island. And
we have tested the integrity of the
infrastructure for safety of all in the
areas. This is a demonstration of our
commitment to take leading role in
building the infrastructure for piping
gas to Nigerian industries”.
The gas pipeline network is used for
the transportation of natural gas, a
safer and cleaner substitute for
gasoline (petrol), diesel, or propane
fuel to industrial users within the
Ungoing laying of the gas pipes in Apapa by OG & P contractor
state. The construction of the
expansion project which
commenced in May 2007 will
deliver 1.809 million standard cubic
feet (mmscf/d) of natural gas per
day to the Apapa industrial area.
The completion of the new pipeline
section as an addition to the existing
infrastructure has resulted in a gas
pipeline coverage of all the major
industrial areas of Lagos State, with
a total pipeline network of 99.4km.
In the near future, Oando Gas and
Power plans to extend its business
beyond Lagos State, to other parts
of Nigeria and indeed, West Africa.
Preliminary work has already
reached various stages while further
positioning itself as the preferred
Local Distribution Company (LDC)
for the West African Gas Pipeline
(WAGP) that will transport natural gas
from Nigeria to Ghana, Togo and
Benin.
Oando Gas and Power Supports the Lagos
Economic Summit
(L-R) Wale Tinubu, GCE, Oando PLC, Adeyemi Kuforiji, Speaker, Lagos House of Assembly and
Sarah Sosan, Deputy Governor, Lagos State
Oando Gas and Power
was amongst the
sponsors of the 4 th
Lagos Economic Summit with
the theme “Transforming Lagos
into Africa’s Model Megacity”.
The forum was to present a
forum for government to identify
and engage with prospective
solution providers and investors
who can assist the government
in its goals to make Lagos
Africa’s model city.”
As part of the State’s framework
for development planning, the
Summit is intended to provide a
platform for sharing knowledge
and experiences about solutions
to the challenges that confront
the State. It will also be an
(L) Babatunde Raji Fashola, Executive Governor, Lagos State and Akintola Williams, Renowned Accountant
(R) with other guests at the summit
occasion to identify and form
partnerships with other cities,
prospective solution providers
and investors who can
contribute towards the
sustainable development
of Lagos as a Mega-City.
Oando Gas and Power was ably
represented by the Group Chief
Executive, Oando PLC who
enumerated the short term and
long term plans of Gaslink in
providing gas for industrial
customers with the Greater
Lagos Area as well as building
Independent Power Plants to
power water projects in Lagos
State.
95 OandoNews

Oando Staff f ends 1 st Quarter with a Beach Party
Most Lagos Staff decided
to let their hairs down
on the 12 th of April,
2008 at the Hermitage Beach
Resort celebrating the end of a
quarter with serious part gig. It
was first time the staff would
have its quarterly TGIF at the
beach side.
Music was supplied by the
indefatigable DJ Humility and
the Sharp Band.
While some staff decided to sit
back and relax, others engaged
excitedly in the beach football
and volleyball games playing to
the cheers of supporters. It was
also real fun all the way as Koffi
and Wamlele treated all to rib
cracking and mind blowing
jokes.
Tictac of Ghana and Tony Tetuila
of the ‘You don hit my Car’ Fame
performed to the enjoyment of
all staff.
The hallmark of the day was the
raffle draw games where all who
participated in the Raffle for
Charity Game carted away
various gift items ranging from a
Laptop to plasma TV Set.
Tony Tetuila (L) and Tic Tac from Ghana (R) Performing at the event
Cross section of Oando staff members and guests at the party
Courtesy Visit to Oando Adopted School
Oando PLC paid a
courtesy visit to the
Head Master of one of
the schools under the Oando
Adopt-A-School programme,
Metropolitan Primary School,
Orile-Iganmu, Lagos. The team
was lead by the Corporate Social
Responsibility Manager,
Abimbola Okoya, in an effort to
monitor the on-going renovation
exercise and reinforce our
support for promoting education
in Nigeria.
The event also facilitated the
planning exercise required for
the upcoming Prize Giving Day,
also to be supported by Oando
PLC. The event aims at
rewarding outstanding pupils
and teachers of the school, with
a special Oando award to be
presented to the best leaving girl
and boy of the school. We also
intend to support the Prize
Giving Day of other schools
under the Oando Adopt-A-
School Programme, as well as
other school activities.
The team is currently planning
the roll-out of the second phase
of adoptions across the country,
with a global view of adopting
100 schools by 2012.
Abimbola Okoya, Corporate Social Responsibility Manager, Oando (L) and I. B Ojo, Head Master,
Metropolitan Primary School, Sari-Iganmu, Lagos
(L-R) Abimbola Okoya, CSR Manager, Adebayo Lambo, NYSC member, Oando and I. B Ojo, Head
Master, Metropolitan Primary School, Sari-Iganmu doing an inspection of the school facilities
OandoNews

Pictures From the 31 st Oando AGM which took place
on Tuesday
uesday, , 27 th May, , 2008
(L-R) Wale Tinubu, GCE, Major Gen. M. Magoro (Rtd), Chairman, Board of Directors and Oredeji Delano,
Chief Compliance Officer and Company Secretary
HRM Michael A. Gbadebo CFR (L) and Alhaji Hamidu Mamud, (both directors)
Navaid Burney (L) and Chief Felix N. Atako JP, (both directors)
(L-R) Chief Felix N. Atako JP, Valentine O. Ibru, Ademola Akinrele SAN, and Onajite P. Okoloko, (Directors)
Some of Oando’s management staff and guests at the AGM
Francid Orji, Port Harcourt Zone, Shareholders Association making a comment at the AGM
Cross section of shareholders at the event
Group photograph of Oando ushers during the AGM
OandoNews

Upstream
Oando Faces at the 2008 Offshor
fshore Technology
Conference ence in Houston Texas
(L-R) Uche Dimiri, CEO Oando Energy Services, Sola Falodun, Business Development Manager, OES
and Eamon L. Akinosho, COO, OEPL
OEPL donates NYSC Quarters, Boat to the OPL 278
Host Communities
As part of its pre-entry
activities to explore oil
oppourtunities in OPL
278 host communities, Oando
Exploration and Production
Limited has donated a twin block
of flats for Corp members posted
to the Bille Kingdom one of the
host communities of the OPL
278.
This is part of the company’s
drive to improve the quality of live
of its host communities.
In the same vein, a haulage
wooden boat was also donated
to the Abissa OPL 278 host
community.
Members of these communities
were elated at the kind gesture
(L-R) Emmanuel Olatunde Odusina, Minister of State for Energy, Kazeem Koleosho, Exploration
Manager, OEPL, Lere Odusote, Business Development Manager, OG & P and Ejiro Dortie, Business
Development Manager, OEPL
of the company towards their
communities.
You would recall that the PSC
which covers oil block 278
Product Sharing Contract Niger
Delta onshore Nigeria was
signed between the Oando
consortium and NNPC in 2006.
The consortium is made up of
Oando Production and
Development Company, Camac
International Limited, Allied
Energy Resources and First Axis
Oil & Gas Ltd. Oando leads the
consortium with 60% of the
participating interest of the rights
and obligations under the
agreement, Camac and Allied
Energy both hold 15% while First
Axis Oil & Gas holds10%
interest.
Eamon L. Akinosho, Chief Operating Officer, OEPL cutting the ribbon to officially launch the
hualage boat
Side view of the commissioned hualage boat
Group photograph of Oando staff members and community leaders in front of the NYSC lodge
Front view of the newly built NYSC lodge
OandoNews 8

OEPL Signs PSC, GMoU on OPL 236
Oando Exploration and Production
(OEPL), in line with its commitment
to fast track the development
of its upstream assets,
has signed a Global Memorandum
of Understanding on Ukana
South 1 OPL 236 with its host
communities, in Uyo, Akwa Ibom
State, in the South-South region
of Nigeria.
Earlier, on Wednesday 20 th February,
2008 also in Uyo, Akwa
Ibom State, OEPL had signed a
Product Sharing Contract Agreement
(PSC) with the Nigerian
National Petroleum Corporation
(NNPC) over the same field.
With the signing of the PSC and
GMOU, Oando has displayed its
readiness to commence activities
on the predominantly gas
field.
Speaking on the signing of the
GMoU, Mr. Eamon Labode
Akinosho, Chief Operating Officer,
Oando Exploration and
Production said “The Global
Memorandum of Understanding
(GMoU) provides for choice of
sustainable community development
projects that rest solely with
the community. This strategic
agreement is a model arrangement
to further enhance the trust
and confidence of our host communities.”
The GMoU has been designed
to encourage participatory partnership
with stakeholders for the
promotion of peace, security and
sustainable development in the
area. It will also aid capacity
building from the various stakeholders
in the host communities.
The gas field, which was
awarded by the Federal Government
during the 2005 gas/oilfield
rounds is expected to add to the
gas reserve base of Nigeria.
Oando Exploration and Production
Limited (OEPL) has a 95 per
cent operating interest in the
Ukana South gas field, while
R.F.O Ventures Ltd has a 5 per
cent interest as well.
“The acquisition of the OPL 236
is a strategic addition to the already
existing assets portfolio to
sustain our long term plan of industrial
and domestic gas distribution.
With the gas potential
suspected in the block, it will
enhance our gas delivery to industrial
customers within the
eastern part of Nigeria” Mr.
Akinosho adds.
The OPL 236 field is 60km east
of Port Harcourt and it covers a
distance of 1652 sq. km. It is located
onshore in the South East
Zone in Nigeria precisely Akwa
Ibom State. The acquisition of
the OPL 236 is indicative of
Oando’s strategic interest in the
field to support its industrial gas
distribution networks in the eastern
part of the country.
It would be recalled that East
Horizon Gas Company, a subsidiary
of Oando Gas and Power
organised an Environmental Impact
Assessment (EIA) Open
Forum as part of its statutory requirements
for the granting of an
Oil Pipeline License (OPL) for a
gas pipeline. The 18 inches diameter
pipeline will run from the
existing NGC Valve Station in
Akwa Ibom State and will terminate
at the United Cement
(UNICEM) factory which is presently
under construction in
Mfamosing, Cross Rivers State.
All representatives of the various
groups in the host communities
were present to witness the signing
ceremony which took place
at the Le Meridien Ibom Resort,
Uyo, Akwa Ibom State.
Some of the community leaders present at the signing
Eamon L. Akinosho, COO, OEPL making a remark during the GMoU signing
Evangelist Kufureabasi Umoh (L), transition Chairman of Ukana Fun LGA exchanging pleasantries
with Samuel Onyenwe, Community Relations Manager, OEPL
9 OandoNews

Good Corporate Govenance and the Bottom Line
In our last article, staff were
enlightened on why Oando
has imbibed compliance, the
advantages of good
governance, the myths often
associated with compliance, etc.
It cannot be over emphasized
that corporate governance is the
corner stone to a sustainable
organization. It deals with the
ways in which Shareholders
assure themselves of getting
returns on their investment.
It is a system by which business
corporations are directed and
controlled. It specifies the
distribution of rights and
responsibilities among different
employees in the corporation
such as the board, managers,
shareholders and other
stakeholders and spells out the
rules and procedure for making
decision.
In this article, we shall take a look
at how good corporate
governance affects the
company’s profitability. The
emphasis of corporate
organizations around the world
is gradually shifting from single
bottom line approach (i.e. the
organization is solely profit
based. It’s only objective is to
make profit) to the triple line
approach.
The triple bottom line is a
business model that is
concerned with a company’s
social responsibility,
environmental obligations and its
financial or economic bottom
line. In this article emphasis shall
be on the economic and
financial aspect of the model
while the other two aspects i.e.
social and environmental
obligations will be dealt with in
our subsequent publications.
The finance people frequently
ask – how will good corporate
governance affect the
company’s ability to sustain or
surpass its profits? in other
words, will compliance or noncompliance
with laws,
regulations and ethical practices
affect the company’s figures at
the end of the year.
Non-compliance with
government regulations e.g. tax
returns, non-disclosure of
directors’ interests, selling
during a closed period, all attract
fines and penalties and
ultimately deplete profits, which
in turn, deplete returns to
shareholders.
INVESTOR CONFIDENCE
We should always remember
that the end goal of corporate
governance is to give
shareholders confidence on how
their company is run. Majority of
investors view corporate
governance as part of their risk
assessment of the company.
The appropriate management of
company funds and assets and
how financial statements are
reported and verified are central
to good governance. If investors
doubt the honesty and
transparency of a company’s
financial reports, it can affect the
company’s share value. It can
also attract negative reputation
and may cause the company to
lose business opportunities.
PROMOTER OF BUSINESS
INTEREST
Corporate governance in recent
times has been acknowledged
as a significant promoter of
business interests. Corporate
Governance & Business Ethics
which had once been edged into
the back seat by blatant
commercial interest are now
finding their way back into the
board room.
Ultimately, it is worthwhile for an
organization to carry on
business operations according
to the rules even if their
competitors do not. The value of
the company lies not only in the
superior physical, logistical and
human assets but in the
confidence that the business
strategy is sound and system are
in place to ensure that corporate
assets are consistently deployed
for the benefit of the company’s
stakeholders.
EMPLOYEE CONFIDENCE
It is a proven fact that employee
morale and confidence in an
organization rises when they
know that proper systems are in
operation within the company.
Employees tend to put in the
extra effort and go the extra mile
in an environment where ethical
standards are high and lip
service is not just paid to
corporate governance but is
actually practiced. This brings
about high productivity and
generates more income for the
company.
RISK EXPOSURE
Corporate governance
promotes corporate fairness,
transparency and accountability,
it however bring about less risk
within the organization because
there will be fewer defaults (if any
at all), fewer financial crises. It
will also help in reducing the
incidence of fraud within the
organization.
INCREASED ACCESS TO
FINANCING
Investors are increasingly
cautious when making decisions
to invest. Financial institutions
and institutional investors now
carry out due diligence on
prospective companies; they
want to know how the company
operates, its ethical stance, and
compliance with regulations, as
well as who their directors are,
what their governance stance is.
A company that practices good
corporate governance invariably
reduces its cost of capital when
sourcing for finance from banks,
and other financial institutions.
PREVENTING CORPORATE
FAILURES
Corporate governance is about
finding ways to ensure that
decisions are made effective. In
this regard the role of nonexecutive
directors and
significant shareholders is
important. Better access to
company information and
regular communication with the
company, in order for them to
better understand the company
performance, objectives and
strategy is crucial. This will aid
their contributions and enable
them challenge the decision
making process and thus
prevent corporate failures.
Toyin Araromi
Compliance Manager
OandoNews 10

Social Diary
Coronation onation of Chief Felix N. Atako JP as
Eze Okpebi Rebisi III in Port Harcourt
HRM, Eze S. N. Woluchem JP, Eze Epera Rebisi (L) presenting Chief Felix N. Atako JP, Director, Oando,
with the staff of office as Eze Okpebi Rebisi III
Staff f Babies
Chief Felix N. Atako JP, Director, Oando (M) with other title holders during his coronation
Folasewa, Femi Adeyeye’s(Corporate Communications) daughter carrying her newly born baby brother
Oluwanifemi
Ethan Jekhine, Misan Jekhine’s (Shared Services) new baby boy was dedicated on 6th April, 2008
11 OandoNews