Oando Hold's 31st Annual General Meeting EHSQ ... - Oando PLC
Oando Hold's 31st Annual General Meeting EHSQ ... - Oando PLC
Oando Hold's 31st Annual General Meeting EHSQ ... - Oando PLC
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<strong>Oando</strong>news<br />
A Quarterly In-house Journal of <strong>Oando</strong> Group<br />
Apr - Jun, 2008. Quarter 2<br />
<strong>Oando</strong> Hold’s 31 st <strong>Annual</strong> <strong>General</strong> <strong>Meeting</strong><br />
As part of its corporate<br />
governance culture,<br />
<strong>Oando</strong> <strong>PLC</strong> organized<br />
and held its 31 st <strong>Annual</strong> <strong>General</strong><br />
<strong>Meeting</strong> on the 27 th of May, 2008<br />
at the Nigerian Law School,<br />
Victoria Island, Lagos.<br />
During the AGM, the annual<br />
financial statement of the<br />
Company was presented, the<br />
Report of the Audit committee<br />
was received, the dividend of N6<br />
payout to shareholders was<br />
recommended by the directors<br />
and approved by the<br />
shareholders. Also an additional<br />
payout of one share to every 5<br />
In line with the 2008 Corporate<br />
objectives of enhancing and<br />
further entrenching an<br />
Environmental, Health and<br />
Safety Quality culture in its staff,<br />
<strong>Oando</strong> <strong>PLC</strong> held its maiden<br />
edition of its <strong>EHSQ</strong> week which<br />
commenced in Lagos on the 9 th<br />
of June and ended in Port<br />
Harcourt on the 13 th of June,<br />
2008.<br />
The theme of the <strong>EHSQ</strong> Week<br />
was “PROMOTING <strong>EHSQ</strong><br />
shares bought was approved by<br />
the shareholders.<br />
A new director was also elected<br />
to the board. His name is Mr.<br />
Navaid Burney. He is the<br />
Managing Director of Emerging<br />
Capital Partners (“ECP”), a<br />
leading Africa-focused private<br />
equity fund manager based in<br />
South Africa.<br />
With the Group’s recording of<br />
huge financial growth in 2007, it<br />
aims to increase its revenue<br />
through the Exploration and<br />
Production business, Gas and<br />
Power as well as Energy Services<br />
business.<br />
<strong>EHSQ</strong> Organizes Safety Week<br />
CULTURE: A recipe for an<br />
incident free environment.”<br />
The event was organized to<br />
sensitize all stakeholders on the<br />
right attitude to work and to<br />
ensure continuous improvement<br />
in the areas of safety of personnel<br />
as well as maintaining the<br />
integrity of company assets,<br />
preserving the environment and<br />
sustaining the good image of the<br />
company.<br />
Dr. Oyet Gogomary, Head <strong>EHSQ</strong>, <strong>Oando</strong> <strong>PLC</strong> speaking during the ‘<strong>Oando</strong> <strong>EHSQ</strong> Week’ at the Lagoon<br />
Restaurant, Lagos. With him are Mr. Wale Tinubu, Group Chief Executive (right) and Dr. Chris<br />
Onuoha, COO, <strong>Oando</strong> Terminal and Logistics (OTL).<br />
(L-R) Major <strong>General</strong> Mohammed Magoro (Rtd), Chairman Board of Directors, Mrs. Oredeji Delano<br />
and Mr. Omamofe Boyo , Deputy Group Chief Executive at <strong>Oando</strong>’s <strong>31st</strong> th <strong>Annual</strong> <strong>General</strong> <strong>Meeting</strong><br />
held in Lagos on Tuesday, May 27, 2008<br />
Key topics that were discussed<br />
bothered on Accidents on the<br />
Road, Managing Stress at Work,<br />
Standardization and its<br />
relevance, Defensive Driving<br />
and a host of other thought –<br />
provoking topics.<br />
There was also the presentation<br />
of certificates and gift items to<br />
those who contributed<br />
immeasurably to an incident –<br />
free year.<br />
The week long programme was<br />
kicked-off at the corporate Head<br />
Office in Lagos by the Group<br />
Chief Executive, Mr. J. A.<br />
Tinubu. Other external<br />
dignitaries that were<br />
represented include the<br />
Commissioner for Environment<br />
in Lagos State, Dr, Muiz Banire,<br />
The Head, Safety and<br />
Environment, DPR, Mr. G.E.<br />
Nwachukwu, Dr. John Akanya,<br />
the DG of SON and several<br />
other speakers.<br />
It is worthy of note that the <strong>EHSQ</strong><br />
Week coincided with the global<br />
recognition of the World<br />
Environment Day which was<br />
held on 6th June, 2008. It is<br />
therefore good enough that<br />
<strong>Oando</strong> <strong>PLC</strong>, a front line<br />
environmentally compliant group<br />
and a leader in the current<br />
initiative for cleaner environment<br />
through the use of gas as<br />
alternative source of power has<br />
chosen same period to<br />
celebrate her <strong>EHSQ</strong> successes.<br />
Here is wishing you an incident<br />
– free year!<br />
Content<br />
Human Capital Management<br />
Participate in Career Fair - Pg. 2<br />
<strong>Oando</strong> Marketing Tour Facilities<br />
- Pg. 3<br />
<strong>Oando</strong> Insecticide Debuts<br />
- Pg. 4<br />
<strong>Oando</strong> Gas & Power Takes Gas to<br />
Tin Can Island - Pg. 5<br />
Photo News - Pg. 6-7<br />
OEPL Donates NYSC Quaters to<br />
Host Communities - Pg. 8<br />
OEPL Sign GMoU with Host Communities<br />
- Pg. 9<br />
Corporate Governance - Pg. 10<br />
Social Diary - Pg. 11<br />
<strong>Oando</strong>News
EDITOR’s Note<br />
Interesting how soon H1 seemed to<br />
have wrapped up! More interesting<br />
was the last quarter of the half year,<br />
Q2 that is. In it <strong>Oando</strong> held its 31 st<br />
<strong>Annual</strong> <strong>General</strong> <strong>Meeting</strong> (AGM) in<br />
Lagos, where it declared a dividend<br />
payout of N6 to shareholders. And<br />
even an additional bonus of 1 to every<br />
5 new shares bought! In addition to the<br />
story is an exciting photo page on the<br />
event.<br />
The cover story also includes <strong>Oando</strong>’s<br />
2008 edition of the ‘<strong>EHSQ</strong> Week’. The<br />
event was organised to ensure<br />
continuous improvement in the area of<br />
safety at work.<br />
From <strong>Oando</strong> Marketing, is the story on<br />
the companywide facility tour by a<br />
team selected from various Business<br />
Units at the Head Office. The all<br />
enterprising entity also debuts with the<br />
new ‘<strong>Oando</strong> Insecticide’ - the sweet<br />
fragrance and potent weapon<br />
fashioned against all domestic insects.<br />
<strong>Oando</strong> Gas and Power recorded<br />
another milestone by laying pipes<br />
across the Liverpool River to ensure<br />
gas supplies to industries on TinCan<br />
Island. While <strong>Oando</strong> Exploration &<br />
Production continued to demonstrate<br />
its commitment to community<br />
involvement with the donation of a twin<br />
block of flats for Corp members and a<br />
giant haulage wooden boat to OPL 278<br />
host communities. OEPL also signed<br />
a Product Sharing Contract agreement<br />
and Global Memorandum of<br />
Understanding on OPL 236 with<br />
Nigerian National Petroleum<br />
Corporation (NNPC) and host<br />
communities.<br />
Q2 was not all work while it lasted as<br />
staff had a big beach party to mark<br />
the end of the fisrt quarter. The<br />
excitement is captured on our photo<br />
page for your reading pleasure.<br />
Meka<br />
Enjoy.<br />
<strong>Oando</strong> Exhibits at LBS Career Fair, , Lagos<br />
...Attends Recruitment Summit in London<br />
Lara Adio, HR Business Partner, Human Capital Management educating a visitor to <strong>Oando</strong>’s Stand<br />
at the 2008 Lagos Business School (LBS) Career Fair, held in Lagos.<br />
Visitors to the <strong>Oando</strong> stand at the event<br />
The Lagos Business School,<br />
in its customary way<br />
organized its Career Fair in<br />
Lagos on the 7 th May, 2008 at the<br />
Pan – African University, Ajah.<br />
<strong>Oando</strong> was one of the<br />
participating companies and its<br />
objective was to hunt talents that<br />
would support its business. A<br />
large number of graduating<br />
students stormed the <strong>Oando</strong><br />
Exhibition stand with varying<br />
questions for staff present at the<br />
Career Fair. Lara Adio and Lawal<br />
Sade provided answers to<br />
questions fielded by the<br />
students.<br />
During the same month, the<br />
largest African recruitment event<br />
in the world, the Sixth Careers in<br />
Africa Recruitment Summit in<br />
London, took place on 23-25<br />
May 2008. The Group Head HR,<br />
Mr. Akin Ayoola attended the<br />
event.<br />
More than 1,500 African<br />
graduates and professionals<br />
residing across Europe and<br />
Africa were selected and invited<br />
to attend the Summit, chosen<br />
from over 14 000 applicants.<br />
Over 3000 interviews with senior<br />
business representatives from<br />
51 participating companies<br />
amongst which is <strong>Oando</strong> <strong>PLC</strong><br />
took place over the course of the<br />
event, in addition to company<br />
presentations and informal<br />
networking sessions.<br />
Candidate feedback proves that<br />
participating in a Career in Africa<br />
Recruitment Summit is a unique<br />
opportunity for skilled<br />
professionals to gain exposure<br />
to senior executives from<br />
multiple organizations in one<br />
location to successfully secure<br />
their next career move.<br />
One of the remarkable<br />
testimonials alluded to was<br />
made by Mr. Akin Ayoola, Group<br />
Head, Human Resources. He<br />
said “An eye opening<br />
experience regarding the<br />
breadth and depth of talent<br />
available. The organization was<br />
impeccable.”<br />
As a company driven by<br />
excellence, <strong>Oando</strong> <strong>PLC</strong> believes<br />
strongly in attracting and<br />
retaining the best brains in their<br />
various field of endeavor that<br />
would complement it in<br />
implementing its intelligent<br />
business strategies.<br />
EDITORIAL TEAM<br />
Editor<br />
Meka Olowola<br />
Assistant Editors<br />
Femi Adeyeye<br />
Sunmbo Olajubu<br />
Odion Aleobua<br />
Contributors<br />
Bimbo Okoya<br />
Samuel Onyenwe<br />
Toyin Araromi<br />
Graphics/Layout<br />
Rotimi Jenfa<br />
Editorial Adviser<br />
Tokunboh Durosaro<br />
<strong>Oando</strong> news is a quarterly publication by<br />
the Corporate Communications Department<br />
of <strong>Oando</strong> <strong>PLC</strong>. All correspondence to The<br />
Editor, <strong>Oando</strong> <strong>PLC</strong>, (9th Floor)<br />
2, Ajose Adeogun Street,<br />
Victoria Island, Lagos,Nigeria.<br />
Website:www.oando<strong>PLC</strong>.com<br />
Email: oandonews@oando<strong>PLC</strong>.com<br />
All rights reserved. Materials in this<br />
issue may be re-printed with due credit<br />
given to <strong>Oando</strong> News<br />
<strong>Oando</strong>News 2
<strong>Oando</strong> hosts Students of Lagos State University<br />
On the 27 th of April, 2008<br />
the Human Capital<br />
Management (HCM)<br />
team hosted 400 level students<br />
of the Lagos State University,<br />
Jibowu Campus on an industrial<br />
visit. The visit was facilitated by<br />
the <strong>Oando</strong> Corporate Social<br />
Responsibility unit as an<br />
opportunity to educate eternal<br />
stakeholders on the unique HCM<br />
structure of <strong>Oando</strong> <strong>PLC</strong>.<br />
The students of the Lagos State<br />
University were led by their<br />
coordinator, Mr. M. A. Oladepo<br />
Their main focus was on<br />
understanding the <strong>Oando</strong> HCM<br />
structure as the students major<br />
in Human Relations and<br />
Personnel Management with<br />
hopes of being employed as HR<br />
managers or officers with<br />
national or Multinational<br />
organizations in Nigeria. The visit<br />
was a graduation requirement<br />
and part of curriculum of the<br />
University.<br />
The HCM team was led by<br />
Maureen Okoro- Sokoh and Lara<br />
Adio and they gave a<br />
presentation detailing the<br />
current HCM structure and the<br />
unique introduction of the<br />
Shared Services concept. They<br />
also gave practical insights into<br />
the fundamental elements of<br />
Maureen Okoro-Sokoh, Manpower Resources Manager (left) and Lara Adio, HR Business Partner<br />
(2 nd left) receiving 400 level students of Human Relations and Personnel Management, Lagos State<br />
University (LASU) during their visit to <strong>Oando</strong> in April, 2008.<br />
HCM while providing<br />
clarifications to the students. A<br />
general overview of the <strong>Oando</strong><br />
organizational structure and the<br />
Corporate Social Responsibility<br />
concept was provided by<br />
Abimbola Okoya, Corporate<br />
Social Responsibility Manager.<br />
<strong>Oando</strong> Marketing Tours Facilities<br />
Some of the <strong>Oando</strong> Management Staff members on the facilities tour<br />
<strong>Oando</strong> Marketing Limited<br />
(OML) in its bid to<br />
assess the state of its<br />
infrastructure and the state of<br />
preparedness of some of its<br />
ongoing projects such as the<br />
Port Harcourt terminal upgrade,<br />
in May 2008, embarked on a<br />
field trip of its installations. This<br />
action was considered important<br />
as it provided an opportunity for<br />
Head Office team to get first<br />
hand information about the<br />
challenges faced by the regional<br />
team in the respective locations.<br />
The visit also provided<br />
opportunity to achieve the<br />
followings;<br />
• Reinforce the need for the<br />
various Human Capital<br />
Management (HCM)<br />
initiatives i.e.<br />
Performance Objectives,<br />
360° Feedback,<br />
Performance Review, etc.<br />
• Clarify any challenges in<br />
the usage of the<br />
documents.<br />
• Highlight various Human<br />
Resources (HR) benefits<br />
open to members of staff.<br />
• Obtain feedback on all<br />
issues affecting quality of<br />
performance (as an<br />
individual or group).<br />
The visit took the touring team<br />
to facilities in Kano, Kaduna,<br />
Abuja, Port Harcourt, Benin and<br />
Apapa. Members of the team<br />
were drawn from various<br />
business units such as Human<br />
Capital Management,<br />
Environment Health Safety<br />
Quality (<strong>EHSQ</strong>), Engineering,<br />
Corporate Communications,<br />
Finance, IT, Terminal and<br />
Logistics and Customers Care<br />
Unit (CCU) to assume an allstakeholder<br />
composition.<br />
The team inspected the facilities<br />
in the Kaduna Lubes Plant (KLP),<br />
the Kano Warehouse, (all in the<br />
Northern region of the country),<br />
Benin Warehouse, PH Terminal<br />
(Southern region of the country)<br />
and Apapa Terminal in Lagos.<br />
After the tour, a discussion<br />
session was held with members<br />
of staff in the region with the<br />
Group Head Human Resources<br />
(GHHR), Akin Ayoola setting the<br />
tone for the one to one<br />
discussion with a PowerPoint<br />
presentation on HR supports.<br />
This was followed by a question<br />
and answer segment where<br />
various questions about the<br />
business were asked by the<br />
team from Head Office with<br />
answers provided by the<br />
appropriate business heads.<br />
The very interactive fora created<br />
an atmosphere for free<br />
expression. This was intended to<br />
encourage safe discussions on<br />
any issue affecting individuals or<br />
the business with the overall<br />
objective of getting better quality<br />
of service delivery from<br />
members.<br />
The relevance of the field team<br />
was also highlighted in the<br />
cause of the meeting as they are<br />
the major interphase between<br />
the customer and the head<br />
office. This gesture was warmly<br />
welcomed in all locations visited.<br />
The sessions were wrapped up<br />
by <strong>Oando</strong> Marketing’s Chief<br />
Operating Officer (COO), Mrs.<br />
Lara Banjoko who charged the<br />
field team to recognize how<br />
important they are to the<br />
business. “You are probably all<br />
the customer knows about<br />
<strong>Oando</strong>. We at the head office are<br />
there to support you. However,<br />
there is nothing we can do if you<br />
don’t let us know on time<br />
whatever challenges you are<br />
facing. I however promise you<br />
that utmost priority will be given<br />
to all supporting needs brought<br />
to our notice and I do hope you<br />
will reciprocate by doing your job<br />
with greater passion”.<br />
3 <strong>Oando</strong>News
Marketing<br />
On Thursday, May 15,<br />
2008 at the Boardroom<br />
of the Head Office, in<br />
Lagos, <strong>Oando</strong> Marketing (OML),<br />
Nigeria’s leading marketer of<br />
petroleum products, and a<br />
subsidiary of <strong>Oando</strong> <strong>PLC</strong>,<br />
formally introduced into the<br />
Nigerian market, the all-new<br />
<strong>Oando</strong> insecticide.<br />
The move was OML’s strategic<br />
step to diversify its product line<br />
and further consolidate it’s Non-<br />
Fuel Revenue earnings.<br />
The very attractively packaged<br />
product has been designed with<br />
the following features:<br />
• Kills all domestic insects<br />
(including mosquitoes,<br />
cockroaches, bugs, etc)<br />
• Human and<br />
environment-friendly<br />
properties<br />
• Non-irritant<br />
• Pleasant Lemon<br />
fragrance<br />
“<strong>Oando</strong> Insecticide” Debuts<br />
• Attractive packaging<br />
Commenting on the new<br />
product, the Chief Operating<br />
Officer, <strong>Oando</strong> Marketing, Lara<br />
Banjoko, said, “In our usual way<br />
of meeting and exceeding<br />
customer expectation, we have<br />
formulated an effective product<br />
against all domestic insects<br />
including mosquitoes and other<br />
disease carrying insects (flying<br />
or crawling). This is our way of<br />
supporting Nigeria in achieving<br />
the objective of Millennium<br />
Development Goal of<br />
eradicating killer diseases such<br />
as malaria in Africa”.<br />
The <strong>Oando</strong> insecticide is<br />
produced for <strong>Oando</strong> Marketing<br />
by Quimicas Oro, a Spanish<br />
company that manufactures<br />
high quality domestic cleaning<br />
products, insecticides,<br />
fungicides and herbicides as<br />
well as liquid detergent. The<br />
company has a reputation for<br />
producing effective<br />
environmental friendly products<br />
and is ISO 9002 certified by the<br />
Bureau Veritas Quality<br />
international.<br />
The insecticide has been<br />
certified by the National Agency<br />
for Food and Drug<br />
<strong>Oando</strong> Marketing Trains Commercial<br />
Lubes Customers<br />
Administration and Control<br />
(NAFDAC) as containing no<br />
harmful properties.<br />
As part of the marketing push for<br />
the product, a complimentary<br />
gift of a branded pen was given<br />
to all customers who bought the<br />
product from any of our service<br />
stations as an introductory offer.<br />
(L-R) Lara Banjoko, Chief Operating Officer, Oshai Michael, Chief Marketing Officer, Oyet Gogomary,<br />
Head, <strong>EHSQ</strong> and Folami Abubakar, ED Finance at the launch of the product.<br />
The early part of 2008 was<br />
for the Lubes Department<br />
of <strong>Oando</strong> Marketing, a very<br />
busy one indeed. The team<br />
engaged their Vendor Inventory<br />
Management (VMI) customers in<br />
<strong>Oando</strong> product trainings<br />
nationwide.<br />
The exercise was designed for<br />
the direct users of <strong>Oando</strong><br />
Lubricants such as the<br />
Engineers and Technicians<br />
working in clients’ employment.<br />
Their procurement departments<br />
were also invited to gain deeper<br />
insight into the products they buy<br />
for their companies from <strong>Oando</strong>.<br />
The trainees were educated on<br />
<strong>Oando</strong> lubricants’ composition,<br />
qualities and the machine type<br />
and temperatures ranges the<br />
lubricants can be used on.<br />
The objective of the training was<br />
to ensure that users have clear<br />
understanding of the qualities,<br />
composition, application and<br />
uses of the lubricants that is<br />
marketed to them.<br />
The company which benefited<br />
from the exercise includes:<br />
• Guinness Nigeria <strong>PLC</strong><br />
Ogba, Ikeja, Lagos<br />
• Lafarge Cement WAPCO<br />
Nigeria <strong>PLC</strong>, Sagamu in<br />
Ogun State<br />
• Borni Prono, Lagos<br />
• Chisco Motors<br />
• Emerite, Enugu<br />
• 7Up, Enugu and Kaduna<br />
• E k s i o g u l l a r i<br />
Constructions, Kaduna<br />
• Gilmore, Abuja<br />
• Eternite Nigeria Limited,<br />
Sapele, Delta State<br />
Cross section of participants during the training session held in PHCN, Sapele<br />
Group photograph of participants at the Eternite complex, Sapele<br />
<strong>Oando</strong>News 4
Gas & Power<br />
<strong>Oando</strong> Gas & Power Takes Gas to Tincan Island<br />
Industries on the Tincan Island,<br />
Lagos are now positioned to<br />
access natural gas as Gaslink<br />
Nigeria Limited - a subsidiary of<br />
<strong>Oando</strong> Gas and Power (OG & P)<br />
announces the completion of gas<br />
pipeline expansion through the<br />
Liverpool River to the area.<br />
The completion of the new pipeline<br />
section as an addition to the existing<br />
infrastructure has resulted in a gas<br />
pipeline coverage of all the major<br />
industrial areas of Lagos State, with<br />
a total pipeline network of 99.4km.<br />
The expansion has now made gas<br />
available to the following areas:<br />
• Ojota, Maryland<br />
• Obanikoro<br />
• Iganmu, Alaka<br />
• Wharf, Apapa, and<br />
• Amuwo Odofin<br />
Ikeja and its environs have been<br />
connected since 2001.<br />
The expansion is expected to help<br />
cut expenditure on power supply<br />
by 50% for businesses in the<br />
industrial area.<br />
Meanwhile, the integrity of the<br />
pipelines has been subjected to the<br />
rigorous hydrostatic test as required<br />
by the industry safety standards.<br />
The successful conduct of the test<br />
has therefore affirmed that the new<br />
pipelines were constructed in<br />
conformity to international standards<br />
and has surpassed the highest<br />
safety standards for inhabitants and<br />
properties around the facilities.<br />
Commenting on this event, Mr. Bolaji<br />
Osunsanya states; “We have taken<br />
steps to make gas available to<br />
industries on the Tincan Island. And<br />
we have tested the integrity of the<br />
infrastructure for safety of all in the<br />
areas. This is a demonstration of our<br />
commitment to take leading role in<br />
building the infrastructure for piping<br />
gas to Nigerian industries”.<br />
The gas pipeline network is used for<br />
the transportation of natural gas, a<br />
safer and cleaner substitute for<br />
gasoline (petrol), diesel, or propane<br />
fuel to industrial users within the<br />
Ungoing laying of the gas pipes in Apapa by OG & P contractor<br />
state. The construction of the<br />
expansion project which<br />
commenced in May 2007 will<br />
deliver 1.809 million standard cubic<br />
feet (mmscf/d) of natural gas per<br />
day to the Apapa industrial area.<br />
The completion of the new pipeline<br />
section as an addition to the existing<br />
infrastructure has resulted in a gas<br />
pipeline coverage of all the major<br />
industrial areas of Lagos State, with<br />
a total pipeline network of 99.4km.<br />
In the near future, <strong>Oando</strong> Gas and<br />
Power plans to extend its business<br />
beyond Lagos State, to other parts<br />
of Nigeria and indeed, West Africa.<br />
Preliminary work has already<br />
reached various stages while further<br />
positioning itself as the preferred<br />
Local Distribution Company (LDC)<br />
for the West African Gas Pipeline<br />
(WAGP) that will transport natural gas<br />
from Nigeria to Ghana, Togo and<br />
Benin.<br />
<strong>Oando</strong> Gas and Power Supports the Lagos<br />
Economic Summit<br />
(L-R) Wale Tinubu, GCE, <strong>Oando</strong> <strong>PLC</strong>, Adeyemi Kuforiji, Speaker, Lagos House of Assembly and<br />
Sarah Sosan, Deputy Governor, Lagos State<br />
<strong>Oando</strong> Gas and Power<br />
was amongst the<br />
sponsors of the 4 th<br />
Lagos Economic Summit with<br />
the theme “Transforming Lagos<br />
into Africa’s Model Megacity”.<br />
The forum was to present a<br />
forum for government to identify<br />
and engage with prospective<br />
solution providers and investors<br />
who can assist the government<br />
in its goals to make Lagos<br />
Africa’s model city.”<br />
As part of the State’s framework<br />
for development planning, the<br />
Summit is intended to provide a<br />
platform for sharing knowledge<br />
and experiences about solutions<br />
to the challenges that confront<br />
the State. It will also be an<br />
(L) Babatunde Raji Fashola, Executive Governor, Lagos State and Akintola Williams, Renowned Accountant<br />
(R) with other guests at the summit<br />
occasion to identify and form<br />
partnerships with other cities,<br />
prospective solution providers<br />
and investors who can<br />
contribute towards the<br />
sustainable development<br />
of Lagos as a Mega-City.<br />
<strong>Oando</strong> Gas and Power was ably<br />
represented by the Group Chief<br />
Executive, <strong>Oando</strong> <strong>PLC</strong> who<br />
enumerated the short term and<br />
long term plans of Gaslink in<br />
providing gas for industrial<br />
customers with the Greater<br />
Lagos Area as well as building<br />
Independent Power Plants to<br />
power water projects in Lagos<br />
State.<br />
95 <strong>Oando</strong>News
<strong>Oando</strong> Staff f ends 1 st Quarter with a Beach Party<br />
Most Lagos Staff decided<br />
to let their hairs down<br />
on the 12 th of April,<br />
2008 at the Hermitage Beach<br />
Resort celebrating the end of a<br />
quarter with serious part gig. It<br />
was first time the staff would<br />
have its quarterly TGIF at the<br />
beach side.<br />
Music was supplied by the<br />
indefatigable DJ Humility and<br />
the Sharp Band.<br />
While some staff decided to sit<br />
back and relax, others engaged<br />
excitedly in the beach football<br />
and volleyball games playing to<br />
the cheers of supporters. It was<br />
also real fun all the way as Koffi<br />
and Wamlele treated all to rib<br />
cracking and mind blowing<br />
jokes.<br />
Tictac of Ghana and Tony Tetuila<br />
of the ‘You don hit my Car’ Fame<br />
performed to the enjoyment of<br />
all staff.<br />
The hallmark of the day was the<br />
raffle draw games where all who<br />
participated in the Raffle for<br />
Charity Game carted away<br />
various gift items ranging from a<br />
Laptop to plasma TV Set.<br />
Tony Tetuila (L) and Tic Tac from Ghana (R) Performing at the event<br />
Cross section of <strong>Oando</strong> staff members and guests at the party<br />
Courtesy Visit to <strong>Oando</strong> Adopted School<br />
<strong>Oando</strong> <strong>PLC</strong> paid a<br />
courtesy visit to the<br />
Head Master of one of<br />
the schools under the <strong>Oando</strong><br />
Adopt-A-School programme,<br />
Metropolitan Primary School,<br />
Orile-Iganmu, Lagos. The team<br />
was lead by the Corporate Social<br />
Responsibility Manager,<br />
Abimbola Okoya, in an effort to<br />
monitor the on-going renovation<br />
exercise and reinforce our<br />
support for promoting education<br />
in Nigeria.<br />
The event also facilitated the<br />
planning exercise required for<br />
the upcoming Prize Giving Day,<br />
also to be supported by <strong>Oando</strong><br />
<strong>PLC</strong>. The event aims at<br />
rewarding outstanding pupils<br />
and teachers of the school, with<br />
a special <strong>Oando</strong> award to be<br />
presented to the best leaving girl<br />
and boy of the school. We also<br />
intend to support the Prize<br />
Giving Day of other schools<br />
under the <strong>Oando</strong> Adopt-A-<br />
School Programme, as well as<br />
other school activities.<br />
The team is currently planning<br />
the roll-out of the second phase<br />
of adoptions across the country,<br />
with a global view of adopting<br />
100 schools by 2012.<br />
Abimbola Okoya, Corporate Social Responsibility Manager, <strong>Oando</strong> (L) and I. B Ojo, Head Master,<br />
Metropolitan Primary School, Sari-Iganmu, Lagos<br />
(L-R) Abimbola Okoya, CSR Manager, Adebayo Lambo, NYSC member, <strong>Oando</strong> and I. B Ojo, Head<br />
Master, Metropolitan Primary School, Sari-Iganmu doing an inspection of the school facilities<br />
<strong>Oando</strong>News
Pictures From the 31 st <strong>Oando</strong> AGM which took place<br />
on Tuesday<br />
uesday, , 27 th May, , 2008<br />
(L-R) Wale Tinubu, GCE, Major Gen. M. Magoro (Rtd), Chairman, Board of Directors and Oredeji Delano,<br />
Chief Compliance Officer and Company Secretary<br />
HRM Michael A. Gbadebo CFR (L) and Alhaji Hamidu Mamud, (both directors)<br />
Navaid Burney (L) and Chief Felix N. Atako JP, (both directors)<br />
(L-R) Chief Felix N. Atako JP, Valentine O. Ibru, Ademola Akinrele SAN, and Onajite P. Okoloko, (Directors)<br />
Some of <strong>Oando</strong>’s management staff and guests at the AGM<br />
Francid Orji, Port Harcourt Zone, Shareholders Association making a comment at the AGM<br />
Cross section of shareholders at the event<br />
Group photograph of <strong>Oando</strong> ushers during the AGM<br />
<strong>Oando</strong>News
Upstream<br />
<strong>Oando</strong> Faces at the 2008 Offshor<br />
fshore Technology<br />
Conference ence in Houston Texas<br />
(L-R) Uche Dimiri, CEO <strong>Oando</strong> Energy Services, Sola Falodun, Business Development Manager, OES<br />
and Eamon L. Akinosho, COO, OEPL<br />
OEPL donates NYSC Quarters, Boat to the OPL 278<br />
Host Communities<br />
As part of its pre-entry<br />
activities to explore oil<br />
oppourtunities in OPL<br />
278 host communities, <strong>Oando</strong><br />
Exploration and Production<br />
Limited has donated a twin block<br />
of flats for Corp members posted<br />
to the Bille Kingdom one of the<br />
host communities of the OPL<br />
278.<br />
This is part of the company’s<br />
drive to improve the quality of live<br />
of its host communities.<br />
In the same vein, a haulage<br />
wooden boat was also donated<br />
to the Abissa OPL 278 host<br />
community.<br />
Members of these communities<br />
were elated at the kind gesture<br />
(L-R) Emmanuel Olatunde Odusina, Minister of State for Energy, Kazeem Koleosho, Exploration<br />
Manager, OEPL, Lere Odusote, Business Development Manager, OG & P and Ejiro Dortie, Business<br />
Development Manager, OEPL<br />
of the company towards their<br />
communities.<br />
You would recall that the PSC<br />
which covers oil block 278<br />
Product Sharing Contract Niger<br />
Delta onshore Nigeria was<br />
signed between the <strong>Oando</strong><br />
consortium and NNPC in 2006.<br />
The consortium is made up of<br />
<strong>Oando</strong> Production and<br />
Development Company, Camac<br />
International Limited, Allied<br />
Energy Resources and First Axis<br />
Oil & Gas Ltd. <strong>Oando</strong> leads the<br />
consortium with 60% of the<br />
participating interest of the rights<br />
and obligations under the<br />
agreement, Camac and Allied<br />
Energy both hold 15% while First<br />
Axis Oil & Gas holds10%<br />
interest.<br />
Eamon L. Akinosho, Chief Operating Officer, OEPL cutting the ribbon to officially launch the<br />
hualage boat<br />
Side view of the commissioned hualage boat<br />
Group photograph of <strong>Oando</strong> staff members and community leaders in front of the NYSC lodge<br />
Front view of the newly built NYSC lodge<br />
<strong>Oando</strong>News 8
OEPL Signs PSC, GMoU on OPL 236<br />
<strong>Oando</strong> Exploration and Production<br />
(OEPL), in line with its commitment<br />
to fast track the development<br />
of its upstream assets,<br />
has signed a Global Memorandum<br />
of Understanding on Ukana<br />
South 1 OPL 236 with its host<br />
communities, in Uyo, Akwa Ibom<br />
State, in the South-South region<br />
of Nigeria.<br />
Earlier, on Wednesday 20 th February,<br />
2008 also in Uyo, Akwa<br />
Ibom State, OEPL had signed a<br />
Product Sharing Contract Agreement<br />
(PSC) with the Nigerian<br />
National Petroleum Corporation<br />
(NNPC) over the same field.<br />
With the signing of the PSC and<br />
GMOU, <strong>Oando</strong> has displayed its<br />
readiness to commence activities<br />
on the predominantly gas<br />
field.<br />
Speaking on the signing of the<br />
GMoU, Mr. Eamon Labode<br />
Akinosho, Chief Operating Officer,<br />
<strong>Oando</strong> Exploration and<br />
Production said “The Global<br />
Memorandum of Understanding<br />
(GMoU) provides for choice of<br />
sustainable community development<br />
projects that rest solely with<br />
the community. This strategic<br />
agreement is a model arrangement<br />
to further enhance the trust<br />
and confidence of our host communities.”<br />
The GMoU has been designed<br />
to encourage participatory partnership<br />
with stakeholders for the<br />
promotion of peace, security and<br />
sustainable development in the<br />
area. It will also aid capacity<br />
building from the various stakeholders<br />
in the host communities.<br />
The gas field, which was<br />
awarded by the Federal Government<br />
during the 2005 gas/oilfield<br />
rounds is expected to add to the<br />
gas reserve base of Nigeria.<br />
<strong>Oando</strong> Exploration and Production<br />
Limited (OEPL) has a 95 per<br />
cent operating interest in the<br />
Ukana South gas field, while<br />
R.F.O Ventures Ltd has a 5 per<br />
cent interest as well.<br />
“The acquisition of the OPL 236<br />
is a strategic addition to the already<br />
existing assets portfolio to<br />
sustain our long term plan of industrial<br />
and domestic gas distribution.<br />
With the gas potential<br />
suspected in the block, it will<br />
enhance our gas delivery to industrial<br />
customers within the<br />
eastern part of Nigeria” Mr.<br />
Akinosho adds.<br />
The OPL 236 field is 60km east<br />
of Port Harcourt and it covers a<br />
distance of 1652 sq. km. It is located<br />
onshore in the South East<br />
Zone in Nigeria precisely Akwa<br />
Ibom State. The acquisition of<br />
the OPL 236 is indicative of<br />
<strong>Oando</strong>’s strategic interest in the<br />
field to support its industrial gas<br />
distribution networks in the eastern<br />
part of the country.<br />
It would be recalled that East<br />
Horizon Gas Company, a subsidiary<br />
of <strong>Oando</strong> Gas and Power<br />
organised an Environmental Impact<br />
Assessment (EIA) Open<br />
Forum as part of its statutory requirements<br />
for the granting of an<br />
Oil Pipeline License (OPL) for a<br />
gas pipeline. The 18 inches diameter<br />
pipeline will run from the<br />
existing NGC Valve Station in<br />
Akwa Ibom State and will terminate<br />
at the United Cement<br />
(UNICEM) factory which is presently<br />
under construction in<br />
Mfamosing, Cross Rivers State.<br />
All representatives of the various<br />
groups in the host communities<br />
were present to witness the signing<br />
ceremony which took place<br />
at the Le Meridien Ibom Resort,<br />
Uyo, Akwa Ibom State.<br />
Some of the community leaders present at the signing<br />
Eamon L. Akinosho, COO, OEPL making a remark during the GMoU signing<br />
Evangelist Kufureabasi Umoh (L), transition Chairman of Ukana Fun LGA exchanging pleasantries<br />
with Samuel Onyenwe, Community Relations Manager, OEPL<br />
9 <strong>Oando</strong>News
Good Corporate Govenance and the Bottom Line<br />
In our last article, staff were<br />
enlightened on why <strong>Oando</strong><br />
has imbibed compliance, the<br />
advantages of good<br />
governance, the myths often<br />
associated with compliance, etc.<br />
It cannot be over emphasized<br />
that corporate governance is the<br />
corner stone to a sustainable<br />
organization. It deals with the<br />
ways in which Shareholders<br />
assure themselves of getting<br />
returns on their investment.<br />
It is a system by which business<br />
corporations are directed and<br />
controlled. It specifies the<br />
distribution of rights and<br />
responsibilities among different<br />
employees in the corporation<br />
such as the board, managers,<br />
shareholders and other<br />
stakeholders and spells out the<br />
rules and procedure for making<br />
decision.<br />
In this article, we shall take a look<br />
at how good corporate<br />
governance affects the<br />
company’s profitability. The<br />
emphasis of corporate<br />
organizations around the world<br />
is gradually shifting from single<br />
bottom line approach (i.e. the<br />
organization is solely profit<br />
based. It’s only objective is to<br />
make profit) to the triple line<br />
approach.<br />
The triple bottom line is a<br />
business model that is<br />
concerned with a company’s<br />
social responsibility,<br />
environmental obligations and its<br />
financial or economic bottom<br />
line. In this article emphasis shall<br />
be on the economic and<br />
financial aspect of the model<br />
while the other two aspects i.e.<br />
social and environmental<br />
obligations will be dealt with in<br />
our subsequent publications.<br />
The finance people frequently<br />
ask – how will good corporate<br />
governance affect the<br />
company’s ability to sustain or<br />
surpass its profits? in other<br />
words, will compliance or noncompliance<br />
with laws,<br />
regulations and ethical practices<br />
affect the company’s figures at<br />
the end of the year.<br />
Non-compliance with<br />
government regulations e.g. tax<br />
returns, non-disclosure of<br />
directors’ interests, selling<br />
during a closed period, all attract<br />
fines and penalties and<br />
ultimately deplete profits, which<br />
in turn, deplete returns to<br />
shareholders.<br />
INVESTOR CONFIDENCE<br />
We should always remember<br />
that the end goal of corporate<br />
governance is to give<br />
shareholders confidence on how<br />
their company is run. Majority of<br />
investors view corporate<br />
governance as part of their risk<br />
assessment of the company.<br />
The appropriate management of<br />
company funds and assets and<br />
how financial statements are<br />
reported and verified are central<br />
to good governance. If investors<br />
doubt the honesty and<br />
transparency of a company’s<br />
financial reports, it can affect the<br />
company’s share value. It can<br />
also attract negative reputation<br />
and may cause the company to<br />
lose business opportunities.<br />
PROMOTER OF BUSINESS<br />
INTEREST<br />
Corporate governance in recent<br />
times has been acknowledged<br />
as a significant promoter of<br />
business interests. Corporate<br />
Governance & Business Ethics<br />
which had once been edged into<br />
the back seat by blatant<br />
commercial interest are now<br />
finding their way back into the<br />
board room.<br />
Ultimately, it is worthwhile for an<br />
organization to carry on<br />
business operations according<br />
to the rules even if their<br />
competitors do not. The value of<br />
the company lies not only in the<br />
superior physical, logistical and<br />
human assets but in the<br />
confidence that the business<br />
strategy is sound and system are<br />
in place to ensure that corporate<br />
assets are consistently deployed<br />
for the benefit of the company’s<br />
stakeholders.<br />
EMPLOYEE CONFIDENCE<br />
It is a proven fact that employee<br />
morale and confidence in an<br />
organization rises when they<br />
know that proper systems are in<br />
operation within the company.<br />
Employees tend to put in the<br />
extra effort and go the extra mile<br />
in an environment where ethical<br />
standards are high and lip<br />
service is not just paid to<br />
corporate governance but is<br />
actually practiced. This brings<br />
about high productivity and<br />
generates more income for the<br />
company.<br />
RISK EXPOSURE<br />
Corporate governance<br />
promotes corporate fairness,<br />
transparency and accountability,<br />
it however bring about less risk<br />
within the organization because<br />
there will be fewer defaults (if any<br />
at all), fewer financial crises. It<br />
will also help in reducing the<br />
incidence of fraud within the<br />
organization.<br />
INCREASED ACCESS TO<br />
FINANCING<br />
Investors are increasingly<br />
cautious when making decisions<br />
to invest. Financial institutions<br />
and institutional investors now<br />
carry out due diligence on<br />
prospective companies; they<br />
want to know how the company<br />
operates, its ethical stance, and<br />
compliance with regulations, as<br />
well as who their directors are,<br />
what their governance stance is.<br />
A company that practices good<br />
corporate governance invariably<br />
reduces its cost of capital when<br />
sourcing for finance from banks,<br />
and other financial institutions.<br />
PREVENTING CORPORATE<br />
FAILURES<br />
Corporate governance is about<br />
finding ways to ensure that<br />
decisions are made effective. In<br />
this regard the role of nonexecutive<br />
directors and<br />
significant shareholders is<br />
important. Better access to<br />
company information and<br />
regular communication with the<br />
company, in order for them to<br />
better understand the company<br />
performance, objectives and<br />
strategy is crucial. This will aid<br />
their contributions and enable<br />
them challenge the decision<br />
making process and thus<br />
prevent corporate failures.<br />
Toyin Araromi<br />
Compliance Manager<br />
<strong>Oando</strong>News 10
Social Diary<br />
Coronation onation of Chief Felix N. Atako JP as<br />
Eze Okpebi Rebisi III in Port Harcourt<br />
HRM, Eze S. N. Woluchem JP, Eze Epera Rebisi (L) presenting Chief Felix N. Atako JP, Director, <strong>Oando</strong>,<br />
with the staff of office as Eze Okpebi Rebisi III<br />
Staff f Babies<br />
Chief Felix N. Atako JP, Director, <strong>Oando</strong> (M) with other title holders during his coronation<br />
Folasewa, Femi Adeyeye’s(Corporate Communications) daughter carrying her newly born baby brother<br />
Oluwanifemi<br />
Ethan Jekhine, Misan Jekhine’s (Shared Services) new baby boy was dedicated on 6th April, 2008<br />
11 <strong>Oando</strong>News