Oando Plc Division ls) ion s ... N150/1USD used for convenience of translation Oando Plc generated an additional $24.33m in non-operating income

1

Strictly Private and Confidential

January 2010

“NSE Quoted Company of the Year” 2003, 2004, 2007

*ThisDay Oil & Gas Company of the Year 2008

Building Sub-Saharan Africa’s

Leading Integrated Energy Solutions Provider

Oando Plc

Private & Confidential.

No part of this presentation can be discussed or shared without the written permission of the management of Oando plc

2Contents

1.Group Financial and Operational Overview

2.Divisional Overview: Upstream

3.Divisional Overview : Midstream

4.Divisional Overview: Downstream

5. Rights Issue Highlights

6. APPENDIX

3

GROUP FINANCIAL AND OPERATIONAL OVERVIEW

4

Supply &

TradingEnergy

Services

Gas &

Power

Refining &

Terminals

Group Operations

Midstream Division

11

Mo

nth

, 2

00

9

Fin

an

cia

ls

(US

$M

)D

escri

pti

on

Key a

ssets

• Consists of Gaslink

Nigeria Limited, Akute

Power and East

Horizon Gas Company

Limited

73.8

13.2

6.0

• 128 km gas pipeline in

the East of Nigeria

• 100 km gas

distribution pipeline in

Lagos

• 12 MW Akute Power

Plant

• Leading indigenous

drilling contractor in

Nigeria with special

interest in swamp and

shallow offshore

operations

67.8

56.0

25.8

• 5 rigs

• Drill bits and

engineering services.

• Total fluids

management.

• Rapidly expanding

business

• Primary assets are

located in Nigeria

Revenue 76.8

EBITDA 66.7

Net Profit 15.1

• OPL 236

• OPL 278

• OPL 282

• OML 56

• OML 125

• OML 134

• OML 90

• OPL 321

• OPL 323

• JDZ 2

11 months 2009 NGN/USD exchange rate: N150/1USD used for convenience of translation

Oando Plc generated an additional $24.33m in non-operating income

• Nigeria’s leading oil

retailer with 18%

market share

• Operations in Nigeria,

Togo, Ghana and

Benin

967.8

72.3

22.9

• 562 retail outlets

• Six terminals (120,000

MT)

• 3 Aviation fuel depots

• Two lube blending

plants (55m litres

per annum)

• Ten LPG filling plants

• Largest indigenous

supply and trading

player in the sub-

Saharan region

• Trading desks in

Nigeria, the UK and

Singapore

• Product pipeline

construction at Lagos

Port

• 210,000MT product

terminal at Lekki Free

Trade Zone (LFTZ)

n/a

n/a

n/a

• Ongoing FEED for

refined products tank

farm

• Acquired 450 hectares

of land in LFTZ

• Completed pre-

feasibility studies for

future construction of

a 360kbopd refineryOan

do

: N

igeri

a’s

lead

ing

in

dig

en

ou

s in

teg

rate

d e

nerg

y s

olu

tio

ns c

om

pan

y

Exploration &

Production Marketing

Downstream DivisionUpstream Division

1,750.5

6.9

5.5

5

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09

Total Mobil NSE Index Oando Conoil

Select balance sheet itemsOverview

USD millions 11 months

2009

2008 2007 2006

Non-current assets 996.38 982.34 641.78 269.40

Current assets 666.12 1,225.05 761.71 465.65

Total assets 1,662.50 2,207.39 1,403.49 735.05

Capital and Reserves 350.07 341.42 376.35 184.05

Non-current liabilities 346.80 385.59 201.41 34.87

Current liabilities 965.63 1,479.22 825.73 516.13

Total liabilities and

equity

1,662.50 2,207.39 1,403.49 735.05

Borrowings 771.46 1,407.56 605.03 326.63

Cash & cash equivalents 50.55 374.64 147.88 60.12

Net debt 720.91 1,032.92 457.15 266.51

Oando Plc (Oando) turnover for 11months, 2009 is

$2.57Bn

– Due mainly to an increase in Marketing and Trading

activity and upstream production

Best performing stock over last two years in its peer

group

– Outperformed Nigerian Stock exchange 2009, 18%

increase in share price from Jan - Nov

– Underpinned by strong operating performance over

last 5 years

Continued focus on upstream division expected to

increase profitability and returns considerably

Operating profit is defined as income before tax and interest expense

11 months 2009 NGN/USD exchange rate: N150/1USD used for convenience of translation

Select income statement itemsUSD millions 11 months

2009

2008 2007 2006

Revenue 2,603.4 2,686.5 1,501.8 1,647.8

Cost of sales (2,423.7) (2,360.4) (1,328.5) (1,516.4

)

Gross profit + Other

operating income

348.2 326.1 173.3 131.4

Operating costs (excl depr) (165.4) (137.2) (97.3) (74.9)

EBITDA 182.8 188.9 76.0 56.5

Depreciation (0) (50.8) (11.9) (7.9)

Finance costs (62.3) (47.1) (3.4) (12.8)

Profit before income tax 120.6 91.0 60.7 35.8

Income tax (21.0) (16.3) (10.9) (13.8)

Profit after tax 99.6 74.7 49.8 22.0

Share price performance

Financial and Operational Overview

+18%

- 26%

- 56%

- 68%

- 26%

6

Supply

&

Trading

Energy

Services

Gas

&

Power

Refining

&

Terminals

Strategic Road Map

Midstream Division

Near

Term

Cu

rren

t

• Complete ongoing Gas

pipeline projects

• Enhance operations

and sign new

customers

• Fully contract Rig fleet

to International Oil

Companies

• Enhance Production

from producing Assets

and accelerate near

term development

opportunities

11 months 2009 NGN/USD exchange rate: N150/1USD used for convenience of translation

Total CAPEX Budget of $186M

• Increase distribution

efficiency and

profitability and

expansion into high

margin volumes, Lubes

& LPG distribution

• Increase white products

supply along West

African coast

Transformation from a downstream giant to a full value chain indigenous champion across West Africa

Exploration

&

ProductionMarketing

Downstream DivisionUpstream Division

CA

PE

X

Bu

dg

et

2010

Med

ium

Term

• Consolidation of

position as market

leader and expansion

into other countries

• Target 100kbopd by

2013 achieved through

a mixture of organic

growth and acquisitions

• Establish trade in sub-

Saharan region• Commence FEED

• Expand white product

storage facilities in

Nigeria

• Expand gas distribution

network in Nigeria

• Leverage local content

policy opportunities

(70% LC by 2010)

• Expand product

offering (MWD, etc)

• Harness preferential

resource access due to

indigenous status

• Divestment of up to

49% and listing on the

NSE

• Leverage expected

deregulation in sector

to enhance profits from

high margin products

$39M$55M$80M $11M NA$1M

• Expansion of Nigeria’s

midstream business

and entry into West

Africa (Ghana, Togo

and Benin)

• Expansion of business

across the sub-

Saharan region.

• Development of

product pipelines in

Lagos

• Development of a

210,000MT terminal

facility in Lekki Free

Trade Zone

7

DIVISIONAL OVERVIEW – UPSTREAM

8

ASSET MAP

OML 125

OML 134

Akepo (OML 90)

OPL 282OPL 278

OPL 236

Obodeti/

Obodugwa

(OML 56)

Producing

Appraisal/

Development

Exploration

Core 2P + 2C Reserves: 55.5mmboe

OML 323

OML 321

Block 2JDZ

Exploration & Production: Asset Portfolio

OML 125,

9.8

OML 134,

7.9

OML 90, 1.8

OML 56,

3.7

OPL 236,

32.3

Block Area Wate Depth Date of Working Work

(license) Major Field(s) Type Km2

(m) Assignment Interest Operatorship Program

OML 125 Abo oil / gas 1216 750 Q4 2008 15% NAE Production

OML 56 Obodeti / Obodugwa oil 68.5 NA Q1 2006 45% ENERGIA Production

OML 90 Akepo oil 25.7 20 Q4 2008 30% SOGENAL Development

OML 236 Ukana South gas 1652 NA Q1 2007 52.25% OANDO Development

OML 134 Oberan oil 1131 750 Q4 2008 15% NAE Appraisal

OPL 278 Ke oil 91.9 20 Q1 2006 60% OANDO Exploration

OPL 282 NA oil 699 NA Q3 2006 4% NAOC Exploration

OML 122 Bilbari oil / gas 5% oil / 12 % gas Peak Exploration

OPL 323 NA oil / gas 30% KNOC Exploration

OPL 321 NA oil / gas 30% KNOC Exploration

JDZ Block 2 NA oil / gas 9% Sinopec Exploration

- Oando's interest in marginal fields (Obodeti / Obodugwa and Akepo) is delineated strictly by the fields, therefore only a subset of the license

- Economic terms for Akepo are that Oando pays 100% of costs to firt oil and economic interest ranges from 72% to 54% as per farm-in agreement terms.

- Oando owns 78% interest in Equator Exploration Limited

Equator Assets

9Exploration & Production: Reserves Summary

*As of 30/09/2009.

Block Field

Working

Interest

Reserves

(mmbbls)

Remaining

Reserves

(mmbbls)

Net Interest

(mmbbls)

Reserves

(Bcf)

Net Interest

(Bcf)

Total Net

Interest

(mmboe)

OML 125 Abo Main 15% 53.5 53.5 8.0 72 10.8 9.8

OML 90 Akepo 30% 6.0 6.0 1.8 - - 1.8

OML 56 Obodeti/ Obodugwa 45% 8.3 8.3 3.7 - - 3.7

OPL 236 Ukana South 95% 204 193.8 32.3

67.7 67.7 13.5 276.0 204.6 47.6

OML 134 Oberan 15% 52.5 52.5 7.9 - - 7.9

120.2 120.2 21.4 276.0 204.6 55.5

Contingent

Proven plus Probable

10Exploration & Production: Resources Summary

*Risked Net Interest values of Equator Assets as indicated above reflect Oando’s 78% interest in Equator

Block Field Working Interest

Unrisked OIIP^

(mmbbls)

Prob. Of

Success

Recovery

Factor

Risked

Recovered

Reserves

(mmbbls)

Risked Net

Interest

(mmbbls)

OML 125 Abo Intermediate 15% 293 55% 33% 53.0 8.0

Abo South East 15% 619 50% 33% 102.0 15.3

Aboribo 15% 707 37% 33% 86.0 12.9

Abo North Deep 15% 316 44% 33% 46.0 6.9

Abo North West 15% 397 58% 33% 76.0 11.4

Eba 15% 246 54% 33% 44.0 6.6

Abo South 15% 23 73% 33% 6.0 0.9

Abo South West 15% 36 43% 33% 5.0 0.8

A151 15% 31 - - - 0.0

A254 15% 42 - - - 0.0

Okodo 15% - - - 16.0 2.4

Shell: Deep Prospects 15% 1310 - - - 0.0

4,020.0 434 65.1

OML 134 Oberan unpenetrated 15% 580 37% 32% 69.0 10.4

Engule Structure 15% 158 30% 33% 16.0 2.4

Engule Deep 15% 159 30% 33% 16.0 2.4

Udoro Deep 15% 385 30% 33% 38.0 5.7

Ologure 15% 311 18% 33% 18.0 2.7

1,593.0 157 23.6

OPL 278 Ke 60% 20.1 85% 33% 5.6 3.4

Prospect A 60% 28.2 70% 33% 6.5 3.9

Prospect B 60% 15.3 54% 33% 2.7 1.6

63.6 14.9 8.9

OPL 282 Prospect A 4% 56.5 30% 33% 5.6 0.2

Prospect B 4% 52 30% 33% 5.1 0.2

Prospect C 4% 55 30% 33% 5.4 0.2

163.5 16.2 0.6

OPL 122 (Equator Asset) 5%(oil); 12%(gas) 84% 42.0 1.6

OPL 323 (Equator Asset) 30% 34% 643.0 150.5

OPL 321 (Equator Asset) 30% 27% 275.0 64.4

JDZ 2 (Equator Asset) 30% 26% 352.0 82.4

Total (Excluding Equator Assets) 5,613.0 591.0 98.2

Grand Total 1,903.0 397.0

11Exploration & Production: Operational Overview

Incorporated to tap into vast oil and gas

resources in the Niger Delta and other

opportunities within Gulf of Guinea

Purchased its largest E&P asset from Agip

in 2008

– 15% of producing OML 125 and OML

134, deepwater Nigeria for US$188m

Net 2P+2C reserves of 55.5 mmboe

2009 average production: 4,500bopd, Dec

2009: 5,000bopd

2010 average production: 7,800bopd, Dec

2010: 11,000bopd

– Production of 11,600bopd in 2013 from

existing assets

– Mergers and Acquisitions to increase

production to >100,000 bopd by 2013

Overview

Working on more than US$1bn of

transactions

– Preferred partner/buyer for interests oil

majors want to divest

– Probability of success aided by

indigenous status, corporate profile and

reputation

12Exploration & Production: 2010 Activity Plan

Significant activity to exit 2010 at 11,000 bopd and derisk development/exploration assets

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

OML 125

Abo-12 Drilling

Seismic Acquisition & Processing

OML 134

Seismic Acquisition & Processing

OPL 278

Seismic Acquisition & Processing

OPL 282

Seismic Acquisition

AKEPO

Akepo Phase 2 Field Development

Akepo 2 Drilling

Obodeti/Obodugwa

Field Development (Pipeline Construction)

Ob/Ob4 Drilling (Re entry)

New Well Drilling

Equator Assets

JDZ Block 2 (Complete analysis of well data)

13Exploration & Production: 2010 Production Outlook

Net Production to hit 11,000bopd in 2010

Average Production per day (Thousand barrels)

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

OML 125 4.5 4.5 4.4 4.4 4.3 4.3 4.2 4.2 4.1 4.1 4.1 4.0

Obodeti/Obodugwa 0.5 0.5 0.5 1.1 1.1 2.0 2.3 2.3 3.1 3.1 3.2 3.1

Akepo - - - - 1.4 1.8 2.2 2.2 2.2 3.2 3.5 3.7

Total 5.0 4.9 4.9 5.5 6.9 8.1 8.6 8.6 9.4 10.3 10.7 10.9

-

2.0

4.0

6.0

8.0

10.0

12.0

Akepo

Obodeti/Obodugwa

OML 125

Th

ousand b

bls

per

day

14Exploration & Production: 5 Year Production Outlook

Production set to grow to 100,000bopd by 2013 – margin expansion, earnings diversification

Production - Barrels per day

0

20,000

40,000

60,000

80,000

100,000

120,000

2009 2010 2011 2012 2013 2014

New Field Acquisition

New Block Acquisition

OML 236 (boe)

OML 90

OML 56

OML 125

Production - Barrels per day

2009 2010 2011 2012 2013 2014

OML 125 4,141 4,500 4,455 4,410 4,365 4,320

OML 56 405 2,430 2,228 1,559 1,091 764OML 90 0 1,668 3,835 3,268 2,030 1,015

OML 236 (boe) 0 0 0 0 4,144 4,144

New Field Acquisition 0 0 4,000 8,000 9,400 10,520

New Block Acquisition 14,000 55,000 89,000 89,000 88,000

Total 4,546.0 22,598.0 69,517.6 106,237.6 110,030.6 108,762.7

Asset Category

Producing/Development 4,546.00 8,597.99 10,517.63 9,237.55 11,630.63 10,242.67

Exploration - - - - - -

Acquisition - 14,000.00 59,000.00 97,000.00 98,400.00 98,520.00

15Exploration & Production: Key Opportunities & Outlook

Maximise exploitation of existing assets

Increase near term production

Prove up existing reserve base e.g. drilling

of OML 134 in Q1 2010

Asset build up through strategic acquisitions

Anticipated divestitures from International

Oil Companies (IOCs)

Acquisition of expired licenses &

companies with choice assets

Exploit & harness benefits of indigenous status

Asset growth through upcoming license

bidding round

Partnerships with IOCs / local players

focusing on onshore swamp regions

Local content policy & preferential access

Favourable industry dynamics

Lack of availability of swamp rigs

International players increasing preference

for offshore vs. Nigerian swamp operations

Petroleum Industry Bill

Likely positive impact on fiscal terms and

reform the oil and gas sector and the

regulatory bodies in Nigeria;

incorporate the main JV operations into

limited liability companies, in order to solve

funding issues;

consolidate tax laws and other oil and gas

legislation in Nigeria; and

formalise existing Local Content Policy into

a broader legislation that will encourage

domestic participation in the oil and gas

industry.

Strategic Opportunities Outlook

Build a balanced portfolio and become one of the largest E&P companies in Nigeria

16Energy Services: Operational Overview

Commenced business in 2005 as an integrated

oilfield service company serving E&P companies in

Nigeria

Diverse portfolio:

– Drilling rig services

– Drill bits and engineering services

– Drilling fluids management

Acquired 5 swamp barge rigs

– 2 are on contract with IOC’s and 2 are currently in

a tendering process

Overview

Asset summary

Rig Name Rig Type

Pressure

Output

Horse

Power Drilling Depth Application

Searex 6 Swamp Barge 10,000psi 2,000 20,000ft+ Normal drilling

Searex 12 Swamp Barge 10,000psi 2,000 20,000 ft+ Normal Drilling

Constitution Swamp Barge 15,000psi 3,000 25,000 ft+

High pressure, high

temperature (HPHT)

wells

Rig 1 Swamp Barge 2,000 30,000ft + Normal Drilling

Rig 2 Swamp Barge 2,000 30,000ft + Cantilever Rig- Normal

Drilling

Current rig fleet provides OES with 85% market share

in the swamp category

– EBITDA margins are between 45–50%

Have entered into strategic alliances with reputable

international drilling companies:

– Halliburton Energy Services

– Baker Hughes

17Energy Services: Key Opportunities & Outlook

Partnerships with IOCs focusing on onshore

swamp regions

Benefit from Government local content

policy & indigenous status (70% local

content capacity in 2010)

Distinct advantage with community

relations in operating in Niger Delta

region

Broadening of oilfield service offering to

include full spectrum of drilling services

Favourable industry dynamics

Lack of availability of swamp rigs

International players increasing

preference for offshore vs. Nigerian

swamp operations

Strategic Opportunities Outlook

To be the leading drilling services provider in onshore and swap areas in Nigeria

18

DIVISIONAL OVERVIEW – MIDSTREAM

19Gas & Power: Operational Overview

Gaslink Nigeria Limited

Signed a PPA with the Lagos State Water

Corporation to build 12.15 MW power plant

– Power Plant to be commissioned in Q1, 2009

Positioned to become leading provider of captive

power solutions in Nigeria

Gaslink Nigeria (GNL) has expanded its Lagos

pipeline network to 99km in 5 years

– Increased throughput capacity from

22,000scm/h to 65,000 scm/h

Provides gas to over 90 industries in different

industrial zones in Lagos State

Exploring possibility of supplying gas to Benin,

Ghana and Togo upon completion of West African

Gas pipeline

Akute Power Limited

Commenced development of 128Km gas pipeline

in the East of Nigeria spanning Akwa Ibom and

Cross River states

Pipeline will open up eastern gas market

– Will allow Oando to support local industries in

hedging against unreliable power supply

Opens opportunity to provide dedicated gas and

power to captive customers

– Includes manufacturing facilities and gas to

new independent Power Plants

– Already identified customer demands of

50scm/h.

Gaslink Nigeria

Limited

Akute Power

East Horizon Gas

Company

Oando Gas & Power

East Horizon Gas Company

20Gas & Power: Key Opportunities & Outlook

Leading indigenous gas supplier in Nigeria

Leverage gas infrastructure to monetize group

E&P gas assets for electricity supply

Leverage premier domestic gas distribution

network to provide client energy solutions

including captive power plants e.g. 12.15MW

Akute power plant

Capture & capitalize on opportunities from

deregulation of electricity sector

Broadening gas distribution outreach to

Eastern Nigeria; target sales > 100mmscf/d

Grow reach via West African expansion

Ghana expansion – $1bn strategic

partnership with GNPC for Jubilee Gas

Increased domestic gas consumption

Increase demand for captive power plant

solutions as grid infrastructure rapidly

deteriorates

Acceleration in ongoing deregulation of

electricity sector

Strategic Opportunities Outlook

21

DIVISIONAL OVERVIEW – DOWNSTREAM MARKETING

22Marketing: Operational Overview

Key strategic assets

Nigeria

518 retail outlets

6 terminals in key geographic locations with

combined 120,000MT of storage

3 aviation fuel depots in Lagos, Abuja and Kano

10 LPG plants

2 lubricant blending plants with combined

capacity of 55m litres/annum located in Kaduna

and Apapa

2 bitumen plants with a combined capacity of

12,000MT located in Apapa and Port-Harcourt

1,200 trucks through partnerships with several

transporters

Ghana - 24 retail outlets

Togo - 16 retail outlets

Biggest petroleum brand in Nigeria

– 18% market share (2008)

In 2007, marketing activities were reorganised

into Oando Marketing Limited through a Scheme

of Arrangement

Strong cash-generative business

– 52% growth in turnover and 2.9x growth in

profitability over last 5 years (excluding inter-

company sales)

Benefits from Oando’s leading physical supply

and trading business

Improving gross margin line by increasing

participation in higher margin product lines (e.g.

Lubes, LPG)

Overview

40

25

39 25

22

211222

29 15

3337

33

20

19

25

71

Spread of Retail Stations

23

Build on existing dominant position, improve margins via efficiencies, unlock capital

Consolidate leadership position & expand

franchise

Asset sweat existing retail assets

Partnerships with complementary

service providers e.g. fast food

High-grading by promoting & driving higher

margin product volumes e.g. LPG & lubes

Working capital optimization

Post deregulation i.e. elimination of late

subsidy payments

Reduce credit & speed up collections

Impending deregulation of all white products

including PMS & HHK

Increased drive for substitution of HHK with

LPG

Increased consumption of white products

Regulatory / policy changes to encourage

investment in infrastructure

Strategic Opportunities Outlook

Marketing: Key Opportunities & Outlook

24Supply & Trading: Operational Overview

Business activities include trading of refined

and unrefined petroleum products to refiners,

marketing and trading companies worldwide

Split into Oando Supply and Trading (‚OS&T‛)

and Oando Trading Limited (Bermuda)

(‚OTL‛)

– OS&T responsible for supply of refined

petroleum products into Nigeria

(including to OML)

– OTL responsible for supply into other

markets

Largest indigenous petroleum products

importer in the sub-Saharan region

– Over 1.3 million MT of white products

(PMS, AGO & Jet) imported into Nigeria

in 2008

Lower margin but high turnover business

Overview

Maintain profitability, maximise throughput, capture West African opportunity

Steady cash-flow business

– Liquidity provider for Group in the short

term

Strong management team with over 40 years

combined trading experience

Trading desks in Nigeria, the UK and

Singapore

Expanding into other West African Markets e.g.

Ghana, Togo, Liberia

Has a track record of 100% delivery on all its

supply contracts

Traded products include Jet A1, LPG,

Gasoline, DPK, Diesel, Low/High Pour Fuel Oil,

Naphtha, Base Oil and Bitumen

25

To be a truly global energy trading company focusing on SSA

Improve throughput and efficiencies

Increased efficiency of importation

process

Increased distribution across West

African coast

Improve global partnerships to increase

global access to products

Poised to benefit from impending deregulation

Working capital efficiencies due to

removal of delayed subsidy payment

Increased competition favouring

incumbents

Impending deregulation of the downstream

petroleum sector

Increased competition amongst smaller

players

Strategic Opportunities Outlook

Supply & Trading: Key Opportunities & Outlook

26Refinery & Terminals: Operational Overview

Newest business unit of the Oando Group

Expected to be highly profitable, taking

advantage of the current gasoline deficit in

Nigeria

– Expected to remain a gasoline deficit

market until 2025, even if refineries

operate at 100% capacity

Currently developing state-of-the-art refined

products import terminal with 210,000MT

capacity

– Supported by first privately-operated

Single Point Mooring

– Located in Lekki Free Trade Zone

– First phase expected to be complete in H1

2011

Overview

Poised to take advantage of impending deregulation and harness synergies across entire value chain

Currently developing first greenfield

petroleum refinery in Africa in 20 years

– Capacity of 360,000bopd, enough to

satisfy half of Nigeria’s import requirement

– ‘Bankable' feasibility study conducted by

Wood Mackenzie and Foster Wheeler

– Purchased 450 hectares of land for

refinery development

Entry into Refinery & Terminals sectors

completes its position in all segments of the

energy value chain

No revenue generated to-date

27

Development and growth of LPG sector

Gear returns through improved efficiencies

Bypassing port congestion through own

jetties (current import demurrage in

order of $1million per shipment)

Numerous strategic projects under

consideration include

Expansion of storage facilities

Lekki free trade zone

Impending complete deregulation of the

downstream sector

Continued shortage of domestic supply of

white products for the foreseeable future

Continued bottlenecking at key infrastructure

supply points

Increased LPG consumption per capital.

West African per capital consumption is

7x Nigerian avg. consumption

Strategic Opportunities Outlook

Refinery & Terminals: Key Opportunities & Outlook

28

RIGHTS ISSUE HIGHLIGHTS

29

29

Issuer Oando Plc (‚Oando‛)

N21 Billion ($140M)

Vetiva Capital Management Limited

FCMB Capital Markets Limited

Stanbic IBTC Bank Plc

N1,000,000,000 comprising of 2,000,000,000 Ordinary Shares of 50 kobo each

N452,542,314 Comprising of 905,084,628 Ordinary Shares of 50 Kobo each

Rights Issue of 301,694,876 ordinary shares of 50 kobo each at N70.00 ($0.47) per share

At a 25% discount to Market Price

One (1) new share of every three (3) Ordinary Shares held as at close of business on Friday 18, December

2009

In full on Acceptance

Size

Lead Issuing Houses

Joint Issuing House

Share Capital

•Authorized

•Issued and Fully Paid

Method of Issue

Payment

Underwriting

Status

Provisional Allotment

Issue Price

The rights issue is not being underwritten

The new shares to be issued shall rank pari passu in all respects with the outstanding issued ordinary

shares of the Company

Deutsche Securities (SA) (Pty) LimitedSponsor to Issuer in South

Africa

Summary of Terms

PriceWaterhouseCoopersAuditor

30

30Utilization of Proceeds & Profit Forecast

1

2

3

The Rights Issue is an important step for Oando, towards providing

operational capital to fund the growth of the upstream business, and

short & medium term investments in its gas and power business

segment. The Company also intends to partly restructure the financing

of its upstream assets

Utilization of Proceeds

Upstream Asset

Refinancing:

Est N15.0Bn: $100M

Oando requires additional

capital for refinancing existing

facilities used to procure its

upstream assets. This will

further reduce leverage and

maximize future shareholder

value by increased Return on

Equity

Operational Capital

Development & Upstream

Business:

Est:N4.0Bn: $27M

Oando intends to use part of

the capital raised to finance the

operation of upstream assets,

currently under development,

when they become fully

operational

Working Capital:

Est:N1.6Bn: $10.7M

As Oando continues to expand

its operations, it is expected

that funds would be required to

finance increased scope of day

to day operations

Profit & Loss

$ ’Millions 2009 Est. 2010 2011 2012

Revenue 2,640.6 3,612.9 4,604.5 5,642.4

Cost of Sale (2,377.3) (3,041.8) (3,706.7) (4,523.8)

Gross Profit 263.3 571.1 897.8 1,118.6

Operating

Profit

173.0 322.3 533.6 691.9

Net Interest

Expense

(72.1) (162.3) (174.3) (168.4)

PBT 101.0 160.0 359.3 523.6

PAT 68.7 108.8 244.3 356.0

Dividend (18.11) (27.18) (38.29) (37.68)

No of Shares

Outstanding

905,085 1,206,780 1,206,780 1,206,780

EPS ($) 0.08 0.09 0.20 0.30

Profit Forecast

Oando expects revenue to grow at a CAGR of 24% over the next 3

years.

The Company also expects PAT to achieve a CAGR of 55% over the

next 3 years.

*2009 PAT estimate based on outlook from H1, revised numbers on page 6 of this presentation.

31

31

25-01-2010 Acceptance List opens

Acceptance List closes

Receiving Agents make returns

Lift technical suspension on existing shares

Forward allotment proposal and draft newspaper announcement to SEC

Receive SEC approval of the allotment

Return excess/rejected application money

Allotment announcement

Dispatch share certificates/credit CSCS account

Forward Declaration of Compliance to The NSE and THE JSE

Submission of summary report to SEC

Listing of newly issued shares/Trading commences

19-02-2010

08-03-2010

09-03-2010

29-03-2010

31-03-2010

02-04-2010

02-04-2010

16-04-2010

19-04-2010

21-04-2010

21-04-2010

Date Activity

Indicative Timeline

32

APPENDIX

33

Femi Adeyemo, Finance Director & Group CFO

– Ex McKinsey and Co.

– Primarily focused on equity and debt funding of the large pipeline of projects and

M&A activities of the group

Key Executive Management

Wale Tinubu, Group CEO

– Entrepreneur who started Ocean and Oil as physical oil products trading business

and built it into the Oando of today

– UK educated and trained Lawyer

– Key decision maker and driver behind all business development

Mofe Boyo, Deputy Group CEO & OML CEO

– Handles internally focused and government matters

– Co-owner of Ocean and Oil holdings which owns a minority stake in the publicly listed company

34

Supply

&

Trading

Energy

Services

Gas

&

Power

Refining

&

Terminals

Management Structure

Midstream Division

Exploration

&

ProductionMarketing

Downstream DivisionUpstream Division

Babatunde Ogunnaike

CEO Oando Exploration &

Production

Over 30 years experience at Shell

Petroleum Development Company

Worked in Shell Petroleum

Development Company (SPDC) in 1978

as a wellsite petroleum engineer. He

later became the head of business

planning and economics, and in 1993

was assigned as Senior economics

engineer with Shell Expro - London, UK

Uche Dimiri

CEO, Oando Energy

Services

Almost 20 years oil & gas industry

experience with notable experiences in

measurements and logging while

drilling, directional drilling training and

development, accounts management,

operations and sales and marketing

Prior to joining Oando, He was the

world wide drilling training manager,

Schlumberger D&M, England, with

responsibility for implementing

strategic directions for world wide

directional drilling training

Bolaji Osunsanya

CEO, Oando Gas & Power

Oversees the company’s pipeline

expansion programme, the independent

power plant project as well as other

projects in the West African sub-region

Joined the former Unipetrol Nig PLC in

August 2001, as Head of Lubes and

Specialties where he was responsible

for product coordination and eventual

sales of lubricants, bitumen, chemicals,

LPG and aviation fuels

Dimeji Edwards

CEO, Oando Supply &

Trading

Joined Oando in November 2000 as the

head of the distillates trading strategic

business unit of the company

20 years oil & gas experience with

Oando and Schlumberger

Appointed a director of Oando Supply

and Trading Limited in August, 2005

Ayo Ajose Adeogun

CEO, Oando Refinery and

Terminals / CEO, Marketing

Over 15 years experience in

engineering design and commissioning,

business strategy development and IT

management

Was a member of the Corporate

Development Team from Ocean & Oil

Holdings that worked on the business

execution and process improvement

project carried out in Oando PLC

Omamofe Boyo

Deputy Group CEO

Wale Tinubu

Group CEO, Oando

Femi Adeyemo

Finance Director & Group CFO

35Partners and Advisers

Oando is supported by a host of leading Nigerian and international institutions

Supply

&

Trading

Energy

Services

Gas

&

Power

Refining

&

Terminals

Midstream Division

Exploration

&

ProductionMarketing

Downstream DivisionUpstream Division