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<strong>Oando</strong> <strong>Oando</strong>news <strong>Oando</strong><br />
A Quarterly In-house Journal of <strong>Oando</strong> Group<br />
Jul - Sept, 2008. Quarter 3<br />
<strong>Oando</strong> <strong>Oando</strong> <strong>Showcases</strong> <strong>Showcases</strong> <strong>Upstr</strong> <strong>Upstr</strong>eam <strong>Upstr</strong> eam Businesses<br />
Businesses<br />
at at SPE SPE Confer Conference<br />
Confer ence<br />
<strong>Oando</strong> demonstrated its<br />
competence as an<br />
emerging force in the<br />
upstream sector of the Nigerian<br />
Oil & Gas industry during the<br />
32nd Nigerian Annual<br />
International Conference and<br />
Exhibition (NAICE) organised by<br />
the National Society of Petroleum<br />
Engineers (SPE) and held in<br />
Abuja, 4-6 th August, 2008.<br />
The conference provided <strong>Oando</strong><br />
Exploration & Production and<br />
<strong>Oando</strong> Energy Services the<br />
opportunity top showcase their<br />
technical expertise, product<br />
service lines and competences<br />
to leaders in the upstream sector<br />
of the oil and gas industry.<br />
Mr. Uche Dimiri, Chief Executive<br />
Officer, of OES, co-chaired the<br />
2nd plenary session on<br />
“Emerging Indigenous<br />
<strong>Oando</strong> <strong>PLC</strong>, Nigeria’s<br />
leading integrated<br />
energy solutions<br />
provider, announced a 65%<br />
growth in its third quarter 2008<br />
profit before tax (PBT) to N7.29<br />
billion from N4.42 billion in Q3<br />
2007. The result represents<br />
financial performance for the<br />
quarter ended 30 September<br />
2008.<br />
This positive performance, was<br />
largely driven by our Supply and<br />
Trading, Marketing and increasing<br />
contributions from our Gas<br />
distribution businesses. Once<br />
again the diversity and strength<br />
of <strong>Oando</strong>’s business model, with<br />
operating entities along the<br />
energy value chain, is an enabling<br />
factor in its ability to provide<br />
(L-R) Bill Cobb, President Society of Petroleum Engineers International and Uche Dimiri, MD/CEO<br />
<strong>Oando</strong> Energy Services<br />
Participation in the Exploration<br />
and Production industry”, where<br />
his presentation on the theme<br />
was discussed.<br />
There were over 50 technical<br />
papers delivered on upstream<br />
business operations, two plenary<br />
sessions addressing Nigerian<br />
Content Regulations and<br />
Indigenous Exploration and<br />
Production Companies.<br />
The three day event kicked off<br />
with the Official Opening<br />
ceremony of the Exhibition<br />
Stand by the Honorable Minister<br />
of State for Energy (Petroleum)<br />
Mr. Odein Ajumogobia. He paid<br />
a visit to the <strong>Oando</strong> Stand along<br />
<strong>Oando</strong> <strong>Oando</strong> Gr Grows Gr ows 3r 3rd 3r d Quarter Quarter Pr Profit Pr ofit by by 65%<br />
65%<br />
alternative energy solutions to a<br />
common customer base. Non-fuel<br />
revenues grew to N532 million in<br />
the quarter.<br />
Despite the company’s increase<br />
numbers of shares owing to the<br />
one for five bonus issued in 2008,<br />
Earnings Per Share increased 60%<br />
lending credence to the<br />
robustness of the Company’s<br />
ability to maintain an upward<br />
earnings trajectory. Furthermore,<br />
the acquisition of minority stakes<br />
in the subsidiaries has proved to<br />
be advantageous as profit<br />
attributable to the group grew by<br />
135% from N2.36 billion in 2007<br />
...contd on next page<br />
with the then Honorable Minister<br />
of State for Energy (Gas), Mr.<br />
Emmanuel Olatunde Odusina.<br />
The exhibition booths opening<br />
ceremony attracted most of the<br />
delegates to the <strong>Oando</strong> stand<br />
and Managers from both entities<br />
were on ground to educate<br />
stakeholders on the companies’<br />
various businesses. Members of<br />
staff that represented <strong>Oando</strong><br />
included Messrs Sola Falodun,<br />
Meka Olowola, ‘Tunde<br />
Ogunnaike, Victor<br />
Aniche(Ocean and Oil<br />
Holdings), Ejiro Dortie and<br />
Olasunmbo Olajubu.<br />
There was also a NAICE Annual<br />
General Meeting which was<br />
solely sponsored by <strong>Oando</strong>.<br />
The event ended with two<br />
awards night ceremony where<br />
<strong>Oando</strong> was honored as the<br />
Sponsor of the AGM Cocktail.<br />
Content<br />
Content<br />
<strong>Oando</strong> Sponsors IOD Oil and Gas<br />
Seminar - Pg. 2<br />
<strong>Oando</strong> Marketing Boosts Customer<br />
Experience - Pg. 3<br />
<strong>Oando</strong> Marketing TRIPPs for<br />
Gold - Pg. 4<br />
Natural Gas as Alternative<br />
- Pg. 5<br />
Photo News - Pg. 6-7<br />
OEPL Completes EIA on OPL<br />
278 and 236 - Pg. 8<br />
World Petroleum Conference<br />
- Pg. 9<br />
Corporate Governance - Pg. 10<br />
Social Diary - Pg. 11<br />
<strong>Oando</strong>News
EDITOR’ EDITOR’s EDITOR’ s Note<br />
Note<br />
As we count down to the<br />
end of the 2008, the finish<br />
line is now clearly within<br />
sight. With our strong Q3 results,<br />
we are on course to breast the<br />
tape in style at the end of the<br />
year. This is our lead story this<br />
edition and we are sure you<br />
understand our excitement.<br />
As our custom is, we<br />
participated in leading oil and<br />
gas exhibitions/conferences<br />
during the quarter. Our upstream<br />
businesses made Nigeria proud<br />
at two of such to the admiration<br />
...contd from cover page<br />
to N5.55 billion reflecting strong<br />
performance of the group.<br />
Commenting on the performance,<br />
Wale Tinubu, Group Chief<br />
Executive said; “We are pleased<br />
to announce a sterling<br />
performance underscored by the<br />
diversity of <strong>Oando</strong>’s business<br />
model. This performance was as<br />
a result of our hard won leadership<br />
position in the Supply and Trading<br />
space, improved operational<br />
<strong>Oando</strong>News 2<br />
Meka<br />
<strong>Oando</strong> <strong>Oando</strong> Sponsors Sponsors the the Institute Institute of of Dir Directors’ Dir ectors’ Oil Oil and<br />
and<br />
Gas Gas Seminar Seminar, Seminar , T TTuesday<br />
T uesday 9th 9th September September, September , 2008<br />
2008<br />
<strong>Oando</strong> <strong>PLC</strong>, Nigeria’s<br />
leading integrated<br />
energy solutions<br />
provider, has supported the<br />
Institute of Directors (IoDs) in<br />
organizing a seminar on Oil &<br />
Gas. The event which was held<br />
in Lagos, Nigeria was titled<br />
“Sustainable Energy<br />
Development in Nigeria”.<br />
of the Federal Government. This<br />
also made it to cover.<br />
<strong>Oando</strong>’s usual support of other<br />
organisations was more evident<br />
this quarter of The Lagos State<br />
Government of a greener and<br />
beautiful Lagos. Also the Institute<br />
of Directors, (IoDs) was also a<br />
worthy beneficiary, as <strong>Oando</strong><br />
gave backing to their seminar on<br />
Oil & Gas.<br />
Meanwhile, <strong>Oando</strong> Marketing in<br />
the quest to creating an<br />
unrivalled customers shopping<br />
efficiency in our Marketing division<br />
and increased income from the<br />
strategic expansion of our gas<br />
network.”<br />
For the period under review,<br />
<strong>Oando</strong>’s unwavering commitment<br />
to being the leading integrated<br />
energy solutions provider was<br />
boosted by strategic acquisitions<br />
in the upstream sector which have<br />
led to significant increases in fixed<br />
asset balances, despite its last<br />
The objective was to create a<br />
forum where the role of the<br />
private sector would be<br />
enhanced in economic<br />
development and global<br />
competitiveness. And well as<br />
promote investment and foster<br />
trade relations within the Oil and<br />
gas Industry.<br />
experience at its service<br />
stations, partnered with BigTreat<br />
<strong>PLC</strong>, a leading Bakery and<br />
Confectionery outfit, to provide<br />
a one-stop shop for high quality<br />
consumers goods at the<br />
forecourts.<br />
From Gas & Power, <strong>Oando</strong><br />
Exploration & Production and<br />
Corporate Social Responsibility,<br />
CRS are very interesting stories.<br />
The Social Dairy captured even<br />
more interesting events by our<br />
staff. Enjoy.<br />
equity injection being as far back<br />
as 2004. The Company views<br />
these activities as providing the<br />
launch pad for its drive towards<br />
building a sustainable business<br />
anchored on upstream business<br />
operations.<br />
Speaking further, he Tinubu said,<br />
“In a period of volatile world<br />
energy markets, the acquisition of<br />
strategic upstream assets<br />
remains the cornerstone of our<br />
Four speakers particated at this<br />
seminar amongst whom was the<br />
Group General Manager,<br />
Nigerian Content Division –<br />
NNPC, Mr. George Osahon, who<br />
spoke on Policy and<br />
Implementation in the Oil and<br />
Gas Industry’,.<br />
(L-R) Chris Onuoha, Group Head, Environment, Health, Safety, Security and Quality Assurance, <strong>Oando</strong> <strong>PLC</strong> Mrs Elizabeth Fagbure, Director General,<br />
Institute of Directors (IoD) and Chief Olusola Dada, President IoD during the Oil and Gas Seminar at Eko Hotel, Victoria Island<br />
future growth; accordingly the<br />
quarter recorded significant<br />
investments in the oil services and<br />
upstream sectors. We remain on<br />
the lookout for complimentary<br />
opportunities to enhance our<br />
portfolio in line with our<br />
commitment to build a resilient<br />
platform in our bid to maximise<br />
shareholder value, not just in the<br />
present but in the future and<br />
beyond”<br />
<strong>Oando</strong> <strong>PLC</strong> as a diamond<br />
sponsor of this laudable event is<br />
proud to demonstrate its support<br />
for the Nigerian Government<br />
initiative on the Local Content<br />
Participation Programme in the<br />
Oil and Gas Sector.<br />
EDITORIAL TEAM<br />
Editor Editor Editor Editor Editor<br />
Meka Olowola<br />
Assistant Assistant Assistant Assistant Assistant Editors Editors Editors Editors Editors<br />
Femi Adeyeye<br />
Sunmbo Olajubu<br />
Odion Aleobua<br />
Contributors<br />
Contributors<br />
Contributors<br />
Contributors<br />
Contributors<br />
Samuel Onyenwe<br />
Ani Chikere Obinna<br />
Graphics/Layout<br />
Rotimi Jenfa<br />
Editorial Editorial Editorial Editorial Editorial Adviser Adviser Adviser Adviser Adviser<br />
Tokunboh Durosaro<br />
<strong>Oando</strong> <strong>Oando</strong> news news<br />
news is a quarterly publication by<br />
the Corporate Communications Department<br />
of <strong>Oando</strong> <strong>PLC</strong>. All correspondence to The<br />
The<br />
Editor Editor, Editor <strong>Oando</strong> <strong>PLC</strong>, (9th Floor)<br />
2, Ajose Adeogun Street,<br />
Victoria Island, Lagos,Nigeria.<br />
Website:www.oandoplc.com<br />
Email: oandonews@oandoplc.com<br />
All All rights rights rr<br />
reserved. rr<br />
eserved. Materials Materials in in in this<br />
this<br />
issue issue may may be be r rre-printed<br />
r e-printed with with due due cr credit cr edit<br />
given given to to <strong>Oando</strong> <strong>Oando</strong> News<br />
News
<strong>Oando</strong> <strong>Oando</strong> Marketing Marketing Boosts Boosts Consumer Consumer Experience<br />
Experience<br />
In line with its commitment to<br />
unparalleled customer<br />
satisfaction, <strong>Oando</strong> Marketing<br />
Limited, Nigeria’s leading oil<br />
retailer, has announced a<br />
strategic partnership with a<br />
leading bakery and<br />
confectionary business outfit in<br />
Nigeria, Big Treat <strong>PLC</strong>.<br />
This strategic partnership<br />
provides that <strong>Oando</strong> Marketing<br />
offer 58 numbers of its over 500<br />
service stations to Big Treat to<br />
expand its distribution bases<br />
across Nigeria. This<br />
development is expected to<br />
further make the <strong>Oando</strong> service<br />
stations a one-stop shop for high<br />
quality consumer products.<br />
The expansion plan will begin<br />
with 6 stations in Lagos State by<br />
the 25 th of September 2008, and<br />
then 8 by the end of November<br />
2008, before finally spreading to<br />
service stations around the<br />
country.<br />
Tuesday, September 2nd,<br />
2008, was billed to be a<br />
remarkable day. Right from<br />
the crack of dawn, the heavens<br />
literally flung open the lid to its<br />
lakes and fill mother earth with<br />
almost all its liquid contents. It<br />
rained all day!<br />
Interestingly, it was also the day<br />
Lagos State Government set<br />
aside for the launch of<br />
“Operation Greener Lagos”<br />
campaign. The campaign is<br />
designed to turn the city of Lagos<br />
into an enviably beautiful place<br />
with minimal emission of<br />
dangerous gasses into the<br />
atmosphere.<br />
As a laudable programme,<br />
<strong>Oando</strong> decided to collaborate<br />
with Lagos State Government to<br />
make success of the initiative. So<br />
while the rain poured in what<br />
seemed like perpetuity, <strong>Oando</strong><br />
and the Lagos State Government<br />
...Signs ...Signs Partnership Partnership with with Big Big T TTreat<br />
T eat<br />
Commenting, Mrs. Lara Banjoko,<br />
the Chief Operating Officer,<br />
<strong>Oando</strong> Marketing Limited, said,<br />
“At <strong>Oando</strong> we are constantly<br />
seeking ways to improve<br />
consumer experience on our<br />
forecourt, this partnership<br />
therefore excites us as it present<br />
us another opportunity to<br />
provide value-added services to<br />
our customers. This is just one<br />
of the few planned strategies<br />
through which we will continue<br />
to enhance one-stop-consumer<br />
experience we are known for”.<br />
Also commenting, Mrs. Pamela<br />
Wu, Managing Director, Big Treat<br />
<strong>PLC</strong> stated, “Today marks a<br />
significant day in the history Big<br />
Treat, as this strategic<br />
partnership will provide us the<br />
good opportunity of reaching our<br />
numerous customers nationwide<br />
faster with our high quality and<br />
nutritious foods. We share in<br />
<strong>Oando</strong> Marketing’s vision of<br />
delivering a unique customer<br />
experience at its service stations<br />
and we are committed to<br />
exceeding expectations by the<br />
quality of our products and<br />
services”.<br />
As Big Treat is one of Nigeria’s<br />
operators of Fast Food outlets,<br />
convenience store marketers<br />
and household supermarkets,<br />
the services will be available at<br />
<strong>Oando</strong> service stations, on size<br />
by size basis. Some stations will<br />
feature all three services while<br />
others will be just one.<br />
With this partnership, Big Treat<br />
will be joining other brands that<br />
have partnership deals with<br />
<strong>Oando</strong> Marketing, such as<br />
Chicken Republic, and Tasty<br />
Fried Chicken.<br />
(L-R) Oshai Michael, Chief Marketing Officer, <strong>Oando</strong> Marketing, Lara Banjoko, Chief Operating Officer,<br />
<strong>Oando</strong> Marketing and Pamela Wu, Managing Director, Big Treat <strong>PLC</strong> after signing the terms of<br />
agreement for the partnership.<br />
<strong>Oando</strong> <strong>Oando</strong> Plants Plants T TTrees<br />
T ees for for Gr Greener Gr eener Lagos<br />
Lagos<br />
teams displayed an unshakable<br />
will to make the day indeed<br />
remarkable,.<br />
The <strong>Oando</strong> team consisting of<br />
Lawal Sade, Chief Sales Officer,<br />
<strong>Oando</strong> Marketing, Meka<br />
Olowola, Head Corporate<br />
Communications, Mrs. Rukayat<br />
Kasali, Dealer, <strong>Oando</strong> filling<br />
Station, Tin Can Island, Apapa,<br />
Dr. Oyet Gogomary, Head EHSQ<br />
and the indefatigable Timothy<br />
Odepe, also of EHSQ,<br />
disregarded the discomfort of<br />
the rainfall to flag-off <strong>Oando</strong>’s<br />
Tree Planting Campaign in the<br />
<strong>Oando</strong> Service Station at Tin Can<br />
Island, Apapa, Lagos.<br />
So under the cover of <strong>Oando</strong><br />
branded umbrellas went Mr.<br />
Olowola, Mrs. Kasali, Dr. Oyet<br />
and Mr. Lawal. They astutely,<br />
lowered the little plant into an<br />
already dug, manure-rich hole in<br />
a symbolic planting gesture and<br />
then followed by patient wait for<br />
the three Photo Journalists from<br />
Vanguard, Business Day and the<br />
Guardian to get perfect shots.<br />
Commenting on the exercise, Dr.<br />
Oyet, who led the team, said “In<br />
the quest to satisfy the energy<br />
needs of our customers, nature<br />
had to give way for a service<br />
station stand. Today, we are set<br />
to reverse the trend and plant<br />
trees to create a balance for<br />
nature and our lives. Going<br />
forward, <strong>Oando</strong> shall plant at<br />
least a tree everywhere our<br />
service stations are located, by<br />
so doing, we will help reduce the<br />
carbon emission to our<br />
environment”.<br />
<strong>Oando</strong> Team members planting a tree at Tincan Island service station<br />
3 <strong>Oando</strong>News
<strong>Oando</strong>News 4<br />
Marketing<br />
<strong>Oando</strong> Marketing in a bid<br />
to re-energize the team<br />
for a stronger second<br />
quarter held its 2008 Sales &<br />
Marketing retreat at MicCom<br />
hotel and resort, Ibokun, Osun<br />
State on Thursday 28 th to Sunday<br />
31 st August, 2008. The theme for<br />
the year’s conference was<br />
“TRIPPing for Gold” coined from<br />
the Groups core value, TRIPP<br />
and the project name for OML’s<br />
transition from a fully owned<br />
subsidiary of <strong>Oando</strong> <strong>PLC</strong> to a<br />
publicly listed company,<br />
BlackGold.<br />
<strong>Oando</strong> <strong>Oando</strong> Marketing Marketing TRIPPs TRIPPs for for Gold<br />
Gold<br />
The event provided the team the<br />
good opportunity to bond as a<br />
team, reflect on the key drivers<br />
of H1 performance, the strategy<br />
for winning in H2, the tools and<br />
requirements for delivering the<br />
set objectives and securing the<br />
commitment of all in ensuring<br />
OML does not only finish the year<br />
strongly but most importantly<br />
continue to be a relevant volume<br />
and value contributor to the<br />
Group.<br />
Addressing the gathering, Mrs.<br />
Lara Banjoko encouraged the<br />
team on the need to have a shift<br />
in mentality in our approach to<br />
issues to a more productive and<br />
positive one. She encouraged<br />
the team to stop the attitude of<br />
apportioning blames but rather<br />
propose solutions, working as a<br />
team as opposed to working as<br />
an individual and the change in<br />
our mindset from thinking that<br />
that our effort only benefits the<br />
organization as we all would be<br />
better for it. She also highlighted<br />
the need to respect our core<br />
value, TRIPP from where the<br />
theme for the conference was<br />
coined.<br />
The retreat provided the<br />
opportunity for the team’s<br />
exposure to the operations of the<br />
various business units in the new<br />
<strong>Oando</strong> Marketing as the unit<br />
Heads gave insights into their<br />
operations. The forum was also<br />
featured talk from motivational<br />
speakers, review and strategy<br />
sessions, Q & A sessions and<br />
spiced up with various team<br />
bonding activites, recreational<br />
activites, performance by guest<br />
comedian, dinner and award<br />
night among others.<br />
Lara Banjoko, Chief Operating Officer, <strong>Oando</strong> Marketing during a presentation at the event Cross section of <strong>Oando</strong> Marketing staff members at the retreat<br />
(L-R) Emwanta Erhahon, Commercial Branch Manager, Marine, Oladipo Olamide, Commercial Branch<br />
Manager, Lagos and Ekuri Charles, Commercial Branch Manager, Ibadan<br />
Group photograph of <strong>Oando</strong> Marketing staff members
Gas & Power<br />
Natural Gas utilisation has<br />
globally been accepted as<br />
the most environment<br />
friendly energy source even though<br />
the level of consumption is still very<br />
low in Nigeria. The choice of natural<br />
gas as the cheapest and best<br />
alternative to liquid fuel became an<br />
issue after the Kyoto Treaty of 1996<br />
as a strategy to reduce pollution of<br />
the environment and global<br />
warming from burning of liquid fuel<br />
especially by automobiles and<br />
generators of manufacturers.<br />
According to a study conducted by<br />
the Nigerian Gas Association<br />
(NGA), the use of natural gas will<br />
enable the user to save 30 per cent<br />
of cost compared with the low pour<br />
fuel oil (LPFO), the cheapest liquid<br />
fuel. However, after over a decade,<br />
Nigerians are yet to come to terms<br />
with the benefits of using natural gas<br />
and this is why the Federal<br />
Government continues to budget<br />
billions of naira annually to subsidise<br />
the consumption of liquid fuel, a<br />
major catalyst of environmental<br />
pollution. For instance, in the first<br />
budget appropriation bill for 2008<br />
submitted to the National Assembly,<br />
President Umaru Yar’Adua had<br />
proposed an expenditure of N400<br />
billion as fuel subsidy but was forced<br />
to raise it to N500 billion during the<br />
final review of the budget when the<br />
prices of crude oil passed the $100<br />
per barrel benchmark in December<br />
2007. Even though the subsidy is<br />
designed mainly for premium motor<br />
spirit (PMS) and kerosene, the<br />
plans by the government to include<br />
subsidy of diesel under the<br />
petroleum support fund (PSF) in<br />
response to protests by the National<br />
Union of Petroleum and Natural Gas<br />
(Nupeng ) and National Association<br />
of Road Transport Owners (Narto)<br />
is likely to exceed N1 trillion<br />
according to the estimate of Mr.<br />
Odein Ajumogobia, minister of state<br />
for Energy (Petroleum). Also in a<br />
survey conducted recently by The<br />
Economy, it was estimated that<br />
Nigerian banks spent N54.3 billion<br />
on the utilization of diesel for<br />
generating electricity in 2007. In<br />
Nigeria today, several companies<br />
are relocating their plants from<br />
Nigeria to neigbouring countries in<br />
Natural Natural Gas Gas as as Alter Alternative Alter native Fuel<br />
Fuel<br />
order to take advantage of the<br />
cheaper source of energy since<br />
power supply in Nigeria is not<br />
reliable and cost of using diesel has<br />
wiped off their profits.<br />
A A better better envir envir environment<br />
envir environment<br />
onment<br />
In addition to the perceived<br />
economic benefits of using natural<br />
gas, the real gains may be<br />
environmental. The study<br />
conducted by the West African Gas<br />
Pipelines (WAGPP) concluded that<br />
greenhouse gas emissions in<br />
Nigeria would fall by 78 million tones<br />
(T) over a twenty-year period as gas<br />
flaring is reduced. In this case,<br />
unrests in the Niger Delta will also<br />
become a thing of the past by the<br />
time oil firms operating in the region<br />
put their natural gas into economic<br />
use whereby jobs would be created<br />
for the unemployed youths and<br />
farmers can get produce from their<br />
farmlands when rays of fire from<br />
flaring stopped. Nigerian now burns<br />
off about 2 billion cubic feet (bcf) of<br />
gas per day, which constitutes<br />
roughly 75 per cent of the country’s<br />
total gas output, and is a major<br />
source of carbon dioxide and<br />
methane emissions in the region.<br />
Nigeria has an estimated 182 trillion<br />
cubic feet (tcf) of proven natural gas<br />
reserves, the tenth largest in the<br />
world.<br />
Gover Government’<br />
Gover Gover nment’ nment’s nment’ s support<br />
support<br />
The creation of a gas ministry by<br />
the present administration is aimed<br />
at giving due attention to the<br />
utilization of natural gas in the<br />
country and elimination of flaring by<br />
oil companies. However, efforts<br />
should be put in place to have laws<br />
that will make it mandatory for<br />
industries to use natural gas. Also<br />
direct investment should be made<br />
by the government to improve gas<br />
infrastructure so that natural gas can<br />
easily be transported from the fields<br />
to city centres where demand<br />
requirement is very high. lot of<br />
investment opportunities abound in<br />
the natural gas sector of the Nigerian<br />
petroleum industry. Increasing<br />
attention is now being given to this<br />
vital sector. Government’s<br />
aspirations for the gas sector<br />
include creating new industries out<br />
of the old oil industry; capturing<br />
economic value and generating as<br />
much revenue from gas as from oil<br />
by 2010. Others are developing the<br />
domestic gas market and, ending<br />
gas flaring by 2008.<br />
Conclusion<br />
Conclusion<br />
Remarkable progress has been<br />
recorded towards the realization of<br />
these objectives. Of the current<br />
annual gas production of about<br />
2,000 bscf, about 40% is flared. This<br />
is a drastic drop from the 70 per<br />
cent proportion flared before the<br />
advent of this administration. The<br />
hitherto flared gas is being<br />
channeled into gas powered<br />
projects for rapid utilization and<br />
monetization with a view to<br />
maximizing value addition to the<br />
nation’s natural gas resource by<br />
2010.<br />
Domestic gas consumption is<br />
expanding as a result of the<br />
ongoing power sector reforms while<br />
gas export which was non-existent<br />
prior to 1999, has received a strong<br />
boost.<br />
As a result of various projects<br />
established, total gas utilized in the<br />
country increased from about 197<br />
million standard cubic feet per day<br />
Ongoing pipe laying construction in Apapa, Lagos<br />
mmscf/d in 1999 to about 573<br />
mmscf/d in 2004. Substantial<br />
demand growth is expected in this<br />
decade.<br />
In order to achieve the Federal<br />
Government’s aspiration of earning<br />
the same level of income from gas<br />
as in oil by 2010, subsidy of PMS<br />
and kerosene should be suspended<br />
and plans to bring diesel under PSF<br />
should be put on hold. This is<br />
because beneficiaries of subsidy are<br />
not the low income earners but the<br />
rich. Instead, the annual budget on<br />
fuel subsidy should be directed at<br />
developing infrastructure that will<br />
improve access to natural gas which<br />
will therefore encourage the<br />
establishment of industries and<br />
generation of employment in the<br />
country. Consequently, domestic<br />
demand for natural gas in Nigeria will<br />
increase to about 1700mmscf/d by<br />
2010.<br />
Senator Osita Izunaso, chairman,<br />
Senate Committee on Gas said the<br />
need to reposition the Nigerian gas<br />
sub-sector informed the initiation of<br />
reforms by the Federal Government.<br />
He said the Senate is expecting the<br />
bill that would give legal backing to<br />
this reforms so that , it is when we<br />
receive the bill that we can then talk<br />
of gas act and we are looking forward<br />
to it.<br />
Excerpts from Financial Standard<br />
95 <strong>Oando</strong>News
The 2 nd Quarter TGIF took<br />
place at the prestigious<br />
civic centre on Ozumba<br />
Mbadiwe Street, Victoria Island.<br />
Staff from Apapa, Ikeja and the<br />
Head Office converged to relish<br />
<strong>Oando</strong>News<br />
<strong>Oando</strong> <strong>Oando</strong> Holds Holds Half Half Y YYear<br />
Y ear TGIF<br />
TGIF<br />
the quarterly staff get-together.<br />
On the list of thrills for all staff<br />
was Seyi Law, the wave-making<br />
upcoming comedy act who<br />
thrilled every one present to his<br />
rib-breaking jokes. The Pot-<br />
Pourri of Music (from old school<br />
to new school, juju, fuji, hip –hop<br />
and all the works), provided by<br />
the DJ electrified the audience<br />
as they danced and twined to<br />
the tunes.<br />
The highlight of the night came<br />
with Naeto C and Ikechukwu<br />
performing live to the excitement<br />
of all present. The duo dropped<br />
songs such Whine Am Well, Kini<br />
Big Deal e.t.c<br />
It was a night of pure fun.<br />
(L) Naeto C and Ikechukwu performing during the event Dimeji Edwards, MD/CEO <strong>Oando</strong> Supply and Trading (L) and Wale Tinubu, GCE, <strong>Oando</strong> <strong>PLC</strong><br />
Cross section of <strong>Oando</strong> staff members at the event Becky Ikhioda, Admin Services Manager, Procurement & Services (L) and Sade Onyia, ED, Finance/<br />
Chief Operating Officer, Supply & Trading<br />
(L-R) Uche Dimiri, MD/CEO <strong>Oando</strong> Energy Services, Akin Ayoola, Group Head Human Resources<br />
and Engr. S.A Giwa , Head Special Projects<br />
(L-R) Bayo Lambo, Corporate Communications, Eniola a guest, Oluwole Tinubu and Wunmi Onile-<br />
Ere both of Supply & Trading
<strong>Oando</strong> <strong>Oando</strong> Supports Supports Metr Metropolitan Metr opolitan Primary Primary School<br />
School<br />
Prize Prize Giving Giving Day<br />
Day<br />
<strong>Oando</strong> supported the<br />
Prize Giving Day of<br />
Metropolitan Primary<br />
School Sari- Iganmu, one of the<br />
schools adopted under <strong>Oando</strong>’s<br />
Adopt – A – School programme<br />
on the 2 nd of September, 2008.<br />
The participation in the school<br />
activity symbolizes <strong>Oando</strong>’s<br />
commitment to take active and<br />
direct participation in the<br />
empowerment of education in<br />
host communities of its<br />
operations.<br />
The event celebrated excellence<br />
and rewarded hand work based<br />
on academic performances,<br />
participation in school vocational<br />
activities, leadership, amongst<br />
others. Two very special awards<br />
where presented by <strong>Oando</strong>,<br />
which were the <strong>Oando</strong> Best<br />
School Living Girl and Boy<br />
Certificates and cash prizes. The<br />
awards marked the recognition<br />
and support of the best<br />
academic performances of both<br />
female and male students in the<br />
2008 school leaving primary six<br />
classes.<br />
The continuous support of<br />
school activities, under the<br />
<strong>Oando</strong> Adopt-A –School<br />
programme, such as the Prize<br />
Giving Day, Sports Day, etc.<br />
aims to further strengthen the<br />
partnership between <strong>Oando</strong> and<br />
host communities.<br />
(L-R) Meka Olowola, Head Corporate Communications, <strong>Oando</strong> <strong>PLC</strong>, Oyet Gogomary, Head EHSQ,<br />
<strong>Oando</strong> <strong>PLC</strong>, a female teacher in the school and the Head Master, Mr I. B. Ojo<br />
Faces Faces at at the the W WWorld<br />
W orld Economic Economic Forum Forum South South Africa<br />
Africa<br />
(L-R) Yomi Awobokun, EA to GCE, Femi Adeyemo, Group Chief Finance Officer and Bolaji<br />
Osunsanya, MD/CEO <strong>Oando</strong> Gas & Power<br />
Aliko Dangote, President Dangote Group (L) and Bolaji Osunsanya, MD/CEO, OG & P<br />
Goldman Goldman Sachs Sachs holds holds Diversity Diversity W WWalk<br />
W alk<br />
with with W WWale<br />
W ale Tinubu Tinubu as as Panelist<br />
Panelist<br />
Wale Tinubu, Group Chief Executive and Navaid Burney, Director <strong>Oando</strong> <strong>PLC</strong>. (L-R) Tope Lawani, Helios Partners, Wale Tinubu, GCE, <strong>Oando</strong> <strong>PLC</strong>, Bernard Mensah, Goldman<br />
Sachs, Patrick Smith, Africa Confidential and Alan von Sponeck, Goldman Sachs during the panel<br />
session.<br />
<strong>Oando</strong>News
<strong>Oando</strong>News 8<br />
<strong>Upstr</strong> <strong>Upstr</strong>eam <strong>Upstr</strong> eam<br />
OEPL OEPL Concludes Concludes EIA EIA on on OPL OPL 278 278 and and OPL OPL 238<br />
238<br />
Representative of the Honourable Minister for Environment Dr N.G. Ekeh flanked by panelist address<br />
stakeholders on 23rd September, 2008 at Aldgate Hotel, Port Harcourt<br />
The Minister for<br />
Environment Housing<br />
and Urban Development<br />
(FMEH & UD) commended<br />
OEPL for conducting an<br />
Envir Environmental Envir onmental Impact<br />
Impact<br />
Assessment Assessment (EIA) for OPL 236<br />
and 278. The minister who was<br />
represent by a Director in the<br />
Ministry Dr N.G Ekeh made the<br />
commendations during OPL 236<br />
and OPL 278 EIA panel reviews<br />
held in Uyo Akwa Ibom State on<br />
5 th August 2008 and Port<br />
Harcourt Rivers state on 23 rd<br />
September 2008 respectively.<br />
During the minister’s<br />
representative remark at the<br />
panel reviews, Dr Ekeh<br />
commended OEPL for<br />
embarking on the EIA before<br />
commencement of field<br />
operation in the blocks in line<br />
with the FMEH & UD regulation.<br />
A cross section of communities representatives<br />
...gets ...gets Minister’ Minister’s Minister’ s Thumps-Up<br />
Thumps-Up<br />
He further applauded OEPL for<br />
setting the pace for other<br />
indigenous oil firms in executing<br />
EIA studies in areas of operation<br />
as well as the Panelist,<br />
communities and other<br />
stakeholders for participating<br />
actively in the EIA panel reviews.<br />
The EIA panel reviews were<br />
successful.<br />
The OPL 236 review panel was<br />
chaired by Prof B.E.B. Nwoke<br />
while other specialists in the<br />
panel were Dr. P F Umanah,<br />
Engr. T. Ogungbemi, Dr I<br />
Udousoro, Mrs. T. O Bankole,<br />
O.A. Obanewa, C. Gomwalk,<br />
and F. Odita. Similarly, the OPL<br />
278 review panel was chaired by<br />
Prof. D.O. Otobo while other<br />
specialists in the panel were Dr.<br />
A.C. Tse, Dr. E. T. Iyagba, Dr.<br />
A.J.T. Otoboterea, G.N. Kamalu,<br />
Celestine Gomwalk, Ochuba<br />
Augusta and Fred Odita.<br />
(L-R) Samuel Onyenwe, Community Relations Manager, OEPL, Prof. S. R. A. Adewusi, EIA Consultant<br />
and Harris Ani, EHSQ (QA/QC) Engineer, OEPL<br />
Akwa Ibom state deputy speaker, Honurable Okon Uwah and other members of the panel during<br />
OPL 236 EIA Panel Reveiw<br />
The Environmental Impact<br />
Assessments act of 1992<br />
presuppose that all projects<br />
including oil and gas, must<br />
undergo an EIA study to<br />
determine the impact of the<br />
project on the immediate<br />
surroundings. This is to ensure<br />
that potential problems in any<br />
new project are foreseen and<br />
addressed in the project design.<br />
Major impact indices studied<br />
include but not limited to Social<br />
and Health Impact Assessment<br />
as well as impact of proposed<br />
activities on the surrounding<br />
Waters, Air, Land and<br />
ecosystem.<br />
OPL 236 located, in Akwa Ibom<br />
State was awarded to OEPL in<br />
2005 while OPL 278 located in<br />
Rivers State was awarded in<br />
2006. Both blocks have a<br />
Production Sharing Contract<br />
(PSC) and are at various stages<br />
of its Field Development Plan<br />
(FDP). It is expected that 3D<br />
Seismic data acquisition and<br />
Drilling activities will start from<br />
last quarter of 2008.<br />
OEPL was represented at the<br />
reviews by Eamon Labode<br />
Akinosho (COO) Tony Sawyerr<br />
(Well Operations Manager)<br />
Harris Ani (EHSQ Mgr) and<br />
Samuel Onyenwe (Community<br />
Relations Manager).<br />
Presently, OEPL is operator of<br />
OPL 278 on behalf of NNPC,<br />
Camac International limited,<br />
Allied Energy Resources , First<br />
Axis Oil & Gas ltd and also<br />
operator for OPL 236 on behalf<br />
of NNPC and RFO ventures<br />
limited.
<strong>Oando</strong> <strong>Oando</strong> Shines Shines at at WPC<br />
WPC<br />
...As ...As Minister Minister beckons beckons on on others others to to emulate emulate <strong>Oando</strong><br />
<strong>Oando</strong><br />
L-R: Odein Ajumogobia (SAN), Honourable Minister of State - Petroleum, Dr. Levi Ajuonuma, Group<br />
General Manager, Group Public Affairs Division, NNPC and Tokunboh Durosaro, General Manager<br />
Corporate Services, <strong>Oando</strong> <strong>PLC</strong><br />
<strong>Oando</strong> Exploration and<br />
Production literary<br />
blazed the trail for other<br />
indigenous upstream company<br />
at the World Petroleum<br />
Conference (WPC), held in the<br />
city of Barcelona, Spain.<br />
<strong>Oando</strong>, which was one of the few<br />
Nigerians companies that<br />
participated in the four-day<br />
conference/exhibition, was<br />
easily the star attraction to<br />
prospective investors and<br />
visitors to the Nigerian stand at<br />
the fair, which had as its theme:<br />
“A World In Transition: Delivering<br />
Energy For Sustainable<br />
Development.” Other companies<br />
that participated in the exhibition<br />
included Oceanic Bank<br />
International as well as Bayelsa<br />
and Rivers states<br />
Amongst the Nigerian content at<br />
the event, the Minister of State<br />
for Energy (Petroleum), Odein<br />
Ajumogobia singled out the<br />
<strong>Oando</strong> for commendations.<br />
During an investors’ dinner<br />
hosted by head of the Nigerian<br />
delegation to the conference, the<br />
Minister acknowledged in<br />
glowing terms, the company’s<br />
development of infrastructure for<br />
the supply and distribution of the<br />
nation’s gas resources for<br />
industrial and domestic uses.<br />
OEPL OEPL Donates Donates Additional Additional 75HP 75HP Y YYahama<br />
Y ahama Out Out Boar Board Boar<br />
Engine Engine to to Abissa Abissa Community<br />
Community<br />
L-R: Sam Onyenwe, Community Relations Manager (OEPL), Chief Mathew Opute (Abissa Community<br />
Secretary) Tony Sawyerr, Well Operations Manager (OEPL), Aloiye Aigbonoga, Legal Manager<br />
(<strong>Oando</strong> <strong>PLC</strong>) and Mr Erekodema Tonye CDC (Abissa Community) during OEPL’s donation of an<br />
additional (One) 75HP Yamaha Engine to Abissa Community on16 th July 2008.<br />
Odein Ajumogobia (SAN), Honourable Minister of State - Petroleum (L) and Eamon Labode Akinosho,<br />
Chief Operating Officer, OEPL<br />
“For prospective investors<br />
interested in coming to do<br />
business in Nigeria, you should<br />
not only emulate the worthy<br />
example of the <strong>Oando</strong> Group<br />
and other indigenous<br />
companies in developing the<br />
nation’s energy for sustainable<br />
development, but also<br />
endeavour to take their<br />
testimonies about the conducive<br />
business environment in Nigeria<br />
seriously,” Ajumogobia told<br />
guests at the dinner.<br />
“For prospective investors<br />
interested in coming to do<br />
business in Nigeria, you should<br />
not only emulate the worthy<br />
example of the <strong>Oando</strong> Group<br />
and other indigenous<br />
companies in developing the<br />
nation-’s energy for sustainable<br />
development, but also<br />
endeavour to take their<br />
testimonies about the conducive<br />
business environment in Nigeria<br />
seriously,” Ajumogobia told<br />
guests at the dinner.<br />
According to the minister, <strong>Oando</strong><br />
Group has not only remained the<br />
leading force in the downstream<br />
sector of the nation’s petroleum<br />
industry, but also one to reckon<br />
with as an integrated oil and gas<br />
company determined to<br />
promote the use of gas as a<br />
viable alternative source of<br />
energy for industries and homes.<br />
Haulage wooden boat earlier donated to the community as part of the pre entry activity in June<br />
this year.<br />
9 <strong>Oando</strong>News
The term whistleblower derives<br />
from the practice of English<br />
Bobbies (Police Constables),<br />
who would blow their whistles when<br />
they noticed the commission of a<br />
crime. The whistle would alert both<br />
law enforcement officers and the<br />
general public of danger.<br />
In modern day parlance it refers to<br />
an employee, former employee, or<br />
member of an organization,<br />
especially a business or government<br />
agency, who reports misconduct to<br />
people or entities that have the power<br />
and presumed willingness to take<br />
corrective action. The misconduct<br />
may be a violation of a policy, law, rule,<br />
regulation and/or a direct threat to<br />
public or corporate interest, such as<br />
fraud, health/safety violations, and<br />
corruption and which usually has<br />
adverse effects on the organization.<br />
Whistle blowing over the past few<br />
years has been a critical tool for<br />
exercising control over corporate<br />
organizations, by exposing wrong<br />
doing, and setting the machinery in<br />
motion for punishment of such wrong<br />
doings. it provides the platform for<br />
which prevention of such wrongdoing<br />
in the future can be put in place.<br />
Some famous whistleblowers include<br />
the following:<br />
• Jeffrey Wigand, a Brown &<br />
Williamson executive who<br />
exposed the Big Tobacco<br />
scandal, revealing that<br />
executives of the companies<br />
knew that cigarettes were<br />
addictive and approved the<br />
addition of carcinogenic<br />
ingredients to the cigarettes.<br />
• David Franklin, a former Parke-<br />
Davis employee (a division of<br />
<strong>Oando</strong>News 10<br />
Whistle Whistle Blowing Blowing – – The The Corporate Corporate Guar Guard Guar<br />
Pfizer) who exposed illegal<br />
marketing of Neurontin<br />
(gabapentin), an epilepsy drug,<br />
for relieving pain, headaches,<br />
bipolar disorder and other<br />
psychiatric illnesses. The case<br />
revealed that the company<br />
marketed the drug for these<br />
illnesses while withholding<br />
evidence that the drug was not<br />
effective for these illnesses. After<br />
initially denying wrongdoing,<br />
Pfizer pleaded guilty to criminal<br />
violation of the Food, Drug and<br />
Cosmetics Act and paid criminal<br />
and civil fines of $430 million<br />
dollars.<br />
• Linda Tripp, a former White House<br />
staff member who disclosed to<br />
the Office of Independent<br />
Counsel that Monica Lewinsky<br />
committed perjury and attempted<br />
to suborn perjury, and President<br />
Bill Clinton committed<br />
misconduct, by denying the<br />
Clinton-Lewinsky relationship in<br />
the Paula Jones federal civil rights<br />
suit.<br />
The Board of Directors recently<br />
approved a Whistle Blowing Policy for<br />
the Company, being a World Class<br />
entity and a champion of good<br />
Corporate Governance<br />
The Policy enables staff to raise<br />
certain concerns about the following<br />
activities;<br />
• Crimes;<br />
• Fraud, bribery and corruption;<br />
• Contravention of the code of<br />
business conduct & ethics e.g.<br />
insider dealing, conflict of interest,<br />
facilitation payments, etc;<br />
• Abuse of office or responsibility<br />
in connection with unauthorized<br />
activity for personal gain;<br />
• Compromise of company’s<br />
EHSQ procedures;<br />
• Sexual or physical abuse;<br />
• Other unethical behaviour.<br />
in a confidential manner, and receive<br />
feedback on the action taken. A key<br />
feature of the whistle blowing process<br />
is the need to maintain confidence<br />
and protect the identity of a reporter<br />
where possible..<br />
To further underscore the importance<br />
of whistle blowing in corporate<br />
governance the Investment and<br />
Securities Act 2007 in one of its<br />
innovative provisions provides<br />
statutory backing for whistle blowing<br />
in Section 306 as follows:<br />
“An employee of a public company<br />
shall have the right to disclose any<br />
information connected with the<br />
activities of his work place which<br />
tends to show that a criminal offence<br />
has been, is being, or is likely to be<br />
committed, that a person has failed,<br />
is failing, or is likely to fail or omit to<br />
comply with a legal obligation, or that<br />
such crime, failure or omission is<br />
likely to be deliberately concealed “<br />
The Act also makes provision for<br />
protection of such employees in<br />
Section 306(5):<br />
“No employee shall be made to<br />
suffer any detriment on the ground<br />
that he has made a disclosure under<br />
the Act. Where an employee suffers<br />
any detriment for such a disclosure,<br />
he can make a complaint to the SEC,<br />
and the SEC after investigation if it<br />
finds that this provision has been<br />
contravened, order the reinstatement<br />
and payment of<br />
compensation to the employee,<br />
where the employee is dismissed<br />
the employee shall be entitled to<br />
compensation which shall be<br />
calculated as if he had attained the<br />
maximum age of retirement or had<br />
served the maximum period of<br />
service”<br />
It should be noted however that such<br />
reports made by employees should<br />
be in good faith, it does not matter<br />
that the report is wrong as long as the<br />
reporter had an honest belief that the<br />
report is genuine.<br />
It should also be noted that whistle<br />
blowing is a tool which is used to<br />
protect a company and not one which<br />
is used to harm it. for example if this<br />
process is not put in place the reporter<br />
may feel compelled to make the<br />
report to the press or a law<br />
enforcement agency, this will certainly<br />
expose the company to adverse<br />
publicity which is certainly not good<br />
for any public company.<br />
A hotline facility is a critical tool in the<br />
implementation of the whistle blowing<br />
process. A hotline is usually operated<br />
by an independent company which<br />
will provide different means of making<br />
anonymous reports (telephone,<br />
email, fax). The purpose of the hotline<br />
is to encourage reporting of<br />
suspected wrongdoing and to assist<br />
in the detection of fraud.<br />
In conclusion, all staff have a duty to<br />
ensure the overall success and<br />
growth of our company, this is one of<br />
the ways by which the Company can<br />
gain its rightful place amongst other<br />
International blue chip companies<br />
that have imbibed good corporate<br />
governance.<br />
By Ani Chikere Obinna<br />
Compliance Officer
Social Diary<br />
Bamidele Odufuye and Naomi Odufuye (EHSQ) (R) during their engagement ceremony at the Emokaro<br />
residence in Lagos.<br />
Oyedayo Oyefi (HCM) and his lovely bride Titilayo during their engagement ceremony at Vining Hall,<br />
Archbishop Vining Memorial Church, GRA, Ikeja, Lagos.<br />
Ngozika Achebe’s (HCM) son, Chimdile was one on Saturday 6th September, 2008<br />
(L-R) Ezekiel Oloko, Samuel Boyo, Hassan Lawal, Hakeem Reheem, Innocent Akpan, Akpo Owhojegheri,<br />
Joseph Sanyaolu, <strong>Oando</strong> drivers who recently graduated from police college Ikeja,<br />
Mor More Mor e pictur pictures pictur es fr from fr om <strong>Oando</strong>s’ <strong>Oando</strong>s’ Half Half Y YYear<br />
Y ear TGIF<br />
TGIF<br />
Samuel Mbanaga, CS & L (L) and Toyin Araromi, Compliance Manager<br />
Wonuola Oyeledun, Ukinebo Isibor both of IT Dept with Joke Oyebanji, OEPL<br />
11 <strong>Oando</strong>News