Oandonews - Oando PLC | one of Africa’s largest ... · Exhibition (NAICE) organised by the National Society of Petroleum Engineers (SPE) and held in Abuja, 4-6thAugust, 2008. The

OandoOandoOandoOandoOandonewsA Q u a r t e r l y I n - h o u s e J o u r n a l o f O a n d o G r o u p

Jul - Sept, 2008. Quarter 3

OandoNews

ContentContentContentContentContentOando Sponsors IOD Oil and GasSeminar - Pg. 2

Oando Marketing Boosts CustomerExperience - Pg. 3

Oando Marketing TRIPPs forGold - Pg. 4

Natural Gas as Alternative- Pg. 5

Photo News - Pg. 6-7

OEPL Completes EIA on OPL278 and 236 - Pg. 8

World Petroleum Conference- Pg. 9

Corporate Governance - Pg. 10

Social Diary - Pg. 11

Oando Showcases UpstrOando Showcases UpstrOando Showcases UpstrOando Showcases UpstrOando Showcases Upstream Businesseseam Businesseseam Businesseseam Businesseseam Businessesat SPE Conferat SPE Conferat SPE Conferat SPE Conferat SPE Conferenceenceenceenceence

OOOOOando demonstrated itscompetence as anemerging force in the

upstream sector of the NigerianOil & Gas industry during the32nd Nigerian AnnualInternational Conference andExhibition (NAICE) organised bythe National Society of PetroleumEngineers (SPE) and held inAbuja, 4-6thAugust, 2008.

The conference provided OandoExploration & Production andOando Energy Services theopportunity top showcase theirtechnical expertise, productservice lines and competencesto leaders in the upstream sectorof the oil and gas industry.

Mr. Uche Dimiri, Chief ExecutiveOfficer, of OES, co-chaired the2nd plenary session on“Emerging Indigenous

Participation in the Explorationand Production industry”, wherehis presentation on the themewas discussed.

There were over 50 technicalpapers delivered on upstreambusiness operations, two plenarysessions addressing NigerianContent Regulations and

Indigenous Exploration andProduction Companies.

The three day event kicked offwith the Official Openingceremony of the ExhibitionStand by the Honorable Ministerof State for Energy (Petroleum)Mr. Odein Ajumogobia. He paida visit to the Oando Stand along

with the then Honorable Ministerof State for Energy (Gas), Mr.Emmanuel Olatunde Odusina.The exhibition booths openingceremony attracted most of thedelegates to the Oando standand Managers from both entitieswere on ground to educatestakeholders on the companies’various businesses. Members ofstaff that represented Oandoincluded Messrs Sola Falodun,Meka Olowola, ‘TundeOgunnaike, VictorAniche(Ocean and OilHoldings), Ejiro Dortie andOlasunmbo Olajubu.

There was also a NAICE AnnualGeneral Meeting which wassolely sponsored by Oando.

The event ended with twoawards night ceremony whereOando was honored as theSponsor of the AGM Cocktail.

...contd on next page

(L-R) Bill Cobb, President Society of Petroleum Engineers International and Uche Dimiri, MD/CEOOando Energy Services

Oando GrOando GrOando GrOando GrOando Grows 3rows 3rows 3rows 3rows 3rd Quarter Prd Quarter Prd Quarter Prd Quarter Prd Quarter Profit by 65%ofit by 65%ofit by 65%ofit by 65%ofit by 65%

OOOOOando PLC, Nigeria’sleading integratedenergy solutions

provider, announced a 65%growth in its third quarter 2008profit before tax (PBT) to N7.29billion from N4.42 billion in Q32007. The result representsfinancial performance for thequarter ended 30 September2008.

This positive performance, waslargely driven by our Supply andTrading, Marketing and increasingcontributions from our Gasdistribution businesses. Onceagain the diversity and strengthof Oando’s business model, withoperating entities along theenergy value chain, is an enablingfactor in its ability to provide

alternative energy solutions to acommon customer base. Non-fuelrevenues grew to N532 million inthe quarter.

Despite the company’s increasenumbers of shares owing to theone for five bonus issued in 2008,Earnings Per Share increased 60%

lending credence to therobustness of the Company’sability to maintain an upwardearnings trajectory. Furthermore,the acquisition of minority stakesin the subsidiaries has proved tobe advantageous as profitattributable to the group grew by135% from N2.36 billion in 2007

OandoNews 2

EDITORIAL TEAM

EditorEditorEditorEditorEditorMeka Olowola

Assistant EditorsAssistant EditorsAssistant EditorsAssistant EditorsAssistant EditorsFemi Adeyeye

Sunmbo OlajubuOdion Aleobua

ContributorsContributorsContributorsContributorsContributorsSamuel Onyenwe

Ani Chikere Obinna

Graphics/LayoutRotimi Jenfa

Editorial AdviserEditorial AdviserEditorial AdviserEditorial AdviserEditorial AdviserTokunboh Durosaro

Oando newsOando newsOando newsOando newsOando news is a quarterly publication bythe Corporate Communications Departmentof Oando PLC. All correspondence to TheTheTheTheThe

EditorEditorEditorEditorEditor,,,,, Oando PLC, (9th Floor)2, Ajose Adeogun Street,

Victoria Island, Lagos,Nigeria.Website:www.oandoplc.com

Email: [email protected]

All rights rAll rights rAll rights rAll rights rAll rights reserved. Materials in thiseserved. Materials in thiseserved. Materials in thiseserved. Materials in thiseserved. Materials in thisissue may be rissue may be rissue may be rissue may be rissue may be re-printed with due cre-printed with due cre-printed with due cre-printed with due cre-printed with due crediteditediteditedit

given to Oando Newsgiven to Oando Newsgiven to Oando Newsgiven to Oando Newsgiven to Oando News

EDITOR’EDITOR’EDITOR’EDITOR’EDITOR’s Notes Notes Notes Notes Note

Meka

Oando Sponsors the Institute of DirOando Sponsors the Institute of DirOando Sponsors the Institute of DirOando Sponsors the Institute of DirOando Sponsors the Institute of Directors’ Oil andectors’ Oil andectors’ Oil andectors’ Oil andectors’ Oil andGas SeminarGas SeminarGas SeminarGas SeminarGas Seminar, T, T, T, T, Tuesday 9th Septemberuesday 9th Septemberuesday 9th Septemberuesday 9th Septemberuesday 9th September, 2008, 2008, 2008, 2008, 2008

OOOOOando PLC, Nigeria’sleading integratedenergy solutions

provider, has supported theInstitute of Directors (IoDs) inorganizing a seminar on Oil &Gas. The event which was heldin Lagos, Nigeria was titled“Sustainable EnergyDevelopment in Nigeria”.

The objective was to create aforum where the role of theprivate sector would beenhanced in economicdevelopment and globalcompetitiveness. And well aspromote investment and fostertrade relations within the Oil andgas Industry.

Four speakers particated at thisseminar amongst whom was theGroup General Manager,Nigerian Content Division –NNPC, Mr. George Osahon, whospoke on Policy andImplementation in the Oil andGas Industry’,.

Oando PLC as a diamondsponsor of this laudable event isproud to demonstrate its supportfor the Nigerian Governmentinitiative on the Local ContentParticipation Programme in theOil and Gas Sector.

...contd from cover page

(L-R) Chris Onuoha, Group Head, Environment, Health, Safety, Security and Quality Assurance, Oando PLC Mrs Elizabeth Fagbure, Director General,Institute of Directors (IoD) and Chief Olusola Dada, President IoD during the Oil and Gas Seminar at Eko Hotel, Victoria Island

As we count down to theend of the 2008, the finishline is now clearly within

sight. With our strong Q3 results,we are on course to breast thetape in style at the end of theyear. This is our lead story thisedition and we are sure youunderstand our excitement.

As our custom is, weparticipated in leading oil andgas exhibitions/conferencesduring the quarter. Our upstreambusinesses made Nigeria proudat two of such to the admiration

of the Federal Government. Thisalso made it to cover.

Oando’s usual support of otherorganisations was more evidentthis quarter of The Lagos StateGovernment of a greener andbeautiful Lagos. Also the Instituteof Directors, (IoDs) was also aworthy beneficiary, as Oandogave backing to their seminar onOil & Gas.

Meanwhile, Oando Marketing inthe quest to creating anunrivalled customers shopping

experience at its servicestations, partnered with BigTreatPLC, a leading Bakery andConfectionery outfit, to providea one-stop shop for high qualityconsumers goods at theforecourts.

From Gas & Power, OandoExploration & Production andCorporate Social Responsibility,CRS are very interesting stories.The Social Dairy captured evenmore interesting events by ourstaff. Enjoy.

to N5.55 billion reflecting strongperformance of the group.

Commenting on the performance,Wale Tinubu, Group ChiefExecutive said; “We are pleasedto announce a sterlingperformance underscored by thediversity of Oando’s businessmodel. This performance was asa result of our hard won leadershipposition in the Supply and Tradingspace, improved operational

efficiency in our Marketing divisionand increased income from thestrategic expansion of our gasnetwork.”

For the period under review,Oando’s unwavering commitmentto being the leading integratedenergy solutions provider wasboosted by strategic acquisitionsin the upstream sector which haveled to significant increases in fixedasset balances, despite its last

equity injection being as far backas 2004. The Company viewsthese activities as providing thelaunch pad for its drive towardsbuilding a sustainable businessanchored on upstream businessoperations.

Speaking further, he Tinubu said,“In a period of volatile worldenergy markets, the acquisition ofstrategic upstream assetsremains the cornerstone of our

future growth; accordingly thequarter recorded significantinvestments in the oil services andupstream sectors. We remain onthe lookout for complimentaryopportunities to enhance ourportfolio in line with ourcommitment to build a resilientplatform in our bid to maximiseshareholder value, not just in thepresent but in the future andbeyond”

3 OandoNews

IIIIIn line with its commitment tounparalleled customersatisfaction, Oando Marketing

Limited, Nigeria’s leading oilretailer, has announced astrategic partnership with aleading bakery andconfectionary business outfit inNigeria, Big Treat PLC.

This strategic partnershipprovides that Oando Marketingoffer 58 numbers of its over 500service stations to Big Treat toexpand its distribution basesacross Nigeria. Thisdevelopment is expected tofurther make the Oando servicestations a one-stop shop for highquality consumer products.

The expansion plan will beginwith 6 stations in Lagos State bythe 25th of September 2008, andthen 8 by the end of November2008, before finally spreading toservice stations around thecountry.

Commenting, Mrs. Lara Banjoko,the Chief Operating Officer,Oando Marketing Limited, said,“At Oando we are constantlyseeking ways to improveconsumer experience on ourforecourt, this partnershiptherefore excites us as it presentus another opportunity toprovide value-added services toour customers. This is just oneof the few planned strategiesthrough which we will continueto enhance one-stop-consumerexperience we are known for”.

Also commenting, Mrs. PamelaWu, Managing Director, Big TreatPLC stated, “Today marks asignificant day in the history BigTreat, as this strategicpartnership will provide us thegood opportunity of reaching ournumerous customers nationwidefaster with our high quality andnutritious foods. We share inOando Marketing’s vision ofdelivering a unique customer

experience at its service stationsand we are committed toexceeding expectations by thequality of our products andservices”.

As Big Treat is one of Nigeria’soperators of Fast Food outlets,convenience store marketersand household supermarkets,the services will be available at

Oando Marketing Boosts Consumer ExperienceOando Marketing Boosts Consumer ExperienceOando Marketing Boosts Consumer ExperienceOando Marketing Boosts Consumer ExperienceOando Marketing Boosts Consumer Experience...Signs Partnership with Big T...Signs Partnership with Big T...Signs Partnership with Big T...Signs Partnership with Big T...Signs Partnership with Big Trrrrreateateateateat

Oando service stations, on sizeby size basis. Some stations willfeature all three services whileothers will be just one.

With this partnership, Big Treatwill be joining other brands thathave partnership deals withOando Marketing, such asChicken Republic, and TastyFried Chicken.

(L-R) Oshai Michael, Chief Marketing Officer, Oando Marketing, Lara Banjoko, Chief Operating Officer,Oando Marketing and Pamela Wu, Managing Director, Big Treat PLC after signing the terms ofagreement for the partnership.

Oando Plants TOando Plants TOando Plants TOando Plants TOando Plants Trrrrrees for Grees for Grees for Grees for Grees for Greener Lagoseener Lagoseener Lagoseener Lagoseener Lagos

TTTTTuesday, September 2nd,2008, was billed to be aremarkable day. Right from

the crack of dawn, the heavensliterally flung open the lid to itslakes and fill mother earth withalmost all its liquid contents. Itrained all day!

Interestingly, it was also the dayLagos State Government setaside for the launch of“Operation Greener Lagos”campaign. The campaign isdesigned to turn the city of Lagosinto an enviably beautiful placewith minimal emission ofdangerous gasses into theatmosphere.

As a laudable programme,Oando decided to collaboratewith Lagos State Government tomake success of the initiative. Sowhile the rain poured in whatseemed like perpetuity, Oandoand the Lagos State Government

teams displayed an unshakablewill to make the day indeedremarkable,.

The Oando team consisting ofLawal Sade, Chief Sales Officer,Oando Marketing, MekaOlowola, Head CorporateCommunications, Mrs. RukayatKasali, Dealer, Oando fillingStation, Tin Can Island, Apapa,Dr. Oyet Gogomary, Head EHSQand the indefatigable TimothyOdepe, also of EHSQ,disregarded the discomfort ofthe rainfall to flag-off Oando’sTree Planting Campaign in theOando Service Station at Tin CanIsland, Apapa, Lagos.

So under the cover of Oandobranded umbrellas went Mr.Olowola, Mrs. Kasali, Dr. Oyetand Mr. Lawal. They astutely,lowered the little plant into analready dug, manure-rich hole ina symbolic planting gesture and Oando Team members planting a tree at Tincan Island service station

then followed by patient wait forthe three Photo Journalists fromVanguard, Business Day and theGuardian to get perfect shots.

Commenting on the exercise, Dr.Oyet, who led the team, said “Inthe quest to satisfy the energyneeds of our customers, naturehad to give way for a service

station stand. Today, we are setto reverse the trend and planttrees to create a balance fornature and our lives. Goingforward, Oando shall plant atleast a tree everywhere ourservice stations are located, byso doing, we will help reduce thecarbon emission to ourenvironment”.

OandoNews 4

Marketing

Oando Marketing TRIPPs for GoldOando Marketing TRIPPs for GoldOando Marketing TRIPPs for GoldOando Marketing TRIPPs for GoldOando Marketing TRIPPs for Gold

OOOOOando Marketing in a bidto re-energize the teamfor a stronger second

quarter held its 2008 Sales &Marketing retreat at MicComhotel and resort, Ibokun, OsunState on Thursday 28th to Sunday31st August, 2008. The theme forthe year’s conference was“TRIPPing for Gold” coined fromthe Groups core value, TRIPPand the project name for OML’stransition from a fully ownedsubsidiary of Oando PLC to apublicly listed company,BlackGold.

The event provided the team thegood opportunity to bond as ateam, reflect on the key driversof H1 performance, the strategyfor winning in H2, the tools andrequirements for delivering theset objectives and securing thecommitment of all in ensuringOML does not only finish the yearstrongly but most importantlycontinue to be a relevant volumeand value contributor to theGroup.

Addressing the gathering, Mrs.Lara Banjoko encouraged the

team on the need to have a shiftin mentality in our approach toissues to a more productive andpositive one. She encouragedthe team to stop the attitude ofapportioning blames but ratherpropose solutions, working as ateam as opposed to working asan individual and the change inour mindset from thinking thatthat our effort only benefits theorganization as we all would bebetter for it. She also highlightedthe need to respect our corevalue, TRIPP from where thetheme for the conference wascoined.

The retreat provided theopportunity for the team’sexposure to the operations of thevarious business units in the newOando Marketing as the unitHeads gave insights into theiroperations. The forum was alsofeatured talk from motivationalspeakers, review and strategysessions, Q & A sessions andspiced up with various teambonding activites, recreationalactivites, performance by guestcomedian, dinner and awardnight among others.

Lara Banjoko, Chief Operating Officer, Oando Marketing during a presentation at the event Cross section of Oando Marketing staff members at the retreat

(L-R) Emwanta Erhahon, Commercial Branch Manager, Marine, Oladipo Olamide, Commercial BranchManager, Lagos and Ekuri Charles, Commercial Branch Manager, Ibadan

Group photograph of Oando Marketing staff members

9 OandoNews5 OandoNews

Gas & Power

Natural Gas as AlterNatural Gas as AlterNatural Gas as AlterNatural Gas as AlterNatural Gas as Alternative Fuelnative Fuelnative Fuelnative Fuelnative Fuel

NNNNNatural Gas utilisation hasglobally been accepted asthe most environment

friendly energy source even thoughthe level of consumption is still verylow in Nigeria. The choice of naturalgas as the cheapest and bestalternative to liquid fuel became anissue after the Kyoto Treaty of 1996as a strategy to reduce pollution ofthe environment and globalwarming from burning of liquid fuelespecially by automobiles andgenerators of manufacturers.According to a study conducted bythe Nigerian Gas Association(NGA), the use of natural gas willenable the user to save 30 per centof cost compared with the low pourfuel oil (LPFO), the cheapest liquidfuel. However, after over a decade,Nigerians are yet to come to termswith the benefits of using natural gasand this is why the FederalGovernment continues to budgetbillions of naira annually to subsidisethe consumption of liquid fuel, amajor catalyst of environmentalpollution. For instance, in the firstbudget appropriation bill for 2008submitted to the National Assembly,President Umaru Yar’Adua hadproposed an expenditure of N400billion as fuel subsidy but was forcedto raise it to N500 billion during thefinal review of the budget when theprices of crude oil passed the $100per barrel benchmark in December2007. Even though the subsidy isdesigned mainly for premium motorspirit (PMS) and kerosene, theplans by the government to includesubsidy of diesel under thepetroleum support fund (PSF) inresponse to protests by the NationalUnion of Petroleum and Natural Gas(Nupeng ) and National Associationof Road Transport Owners (Narto)is likely to exceed N1 trillionaccording to the estimate of Mr.Odein Ajumogobia, minister of statefor Energy (Petroleum). Also in asurvey conducted recently by TheEconomy, it was estimated thatNigerian banks spent N54.3 billionon the utilization of diesel forgenerating electricity in 2007. InNigeria today, several companiesare relocating their plants fromNigeria to neigbouring countries in

order to take advantage of thecheaper source of energy sincepower supply in Nigeria is notreliable and cost of using diesel haswiped off their profits.

A better envirA better envirA better envirA better envirA better environmentonmentonmentonmentonment

In addition to the perceivedeconomic benefits of using naturalgas, the real gains may beenvironmental. The studyconducted by the West African GasPipelines (WAGPP) concluded thatgreenhouse gas emissions inNigeria would fall by 78 million tones(T) over a twenty-year period as gasflaring is reduced. In this case,unrests in the Niger Delta will alsobecome a thing of the past by thetime oil firms operating in the regionput their natural gas into economicuse whereby jobs would be createdfor the unemployed youths andfarmers can get produce from theirfarmlands when rays of fire fromflaring stopped. Nigerian now burnsoff about 2 billion cubic feet (bcf) ofgas per day, which constitutesroughly 75 per cent of the country’stotal gas output, and is a majorsource of carbon dioxide andmethane emissions in the region.

Nigeria has an estimated 182 trillioncubic feet (tcf) of proven natural gasreserves, the tenth largest in theworld.

GoverGoverGoverGoverGovernment’nment’nment’nment’nment’s supports supports supports supports support

The creation of a gas ministry bythe present administration is aimedat giving due attention to theutilization of natural gas in thecountry and elimination of flaring byoil companies. However, effortsshould be put in place to have lawsthat will make it mandatory forindustries to use natural gas. Alsodirect investment should be madeby the government to improve gasinfrastructure so that natural gas caneasily be transported from the fieldsto city centres where demandrequirement is very high. lot ofinvestment opportunities abound inthe natural gas sector of the Nigerianpetroleum industry. Increasingattention is now being given to this

vital sector. Government’saspirations for the gas sectorinclude creating new industries outof the old oil industry; capturingeconomic value and generating asmuch revenue from gas as from oilby 2010. Others are developing thedomestic gas market and, endinggas flaring by 2008.

ConclusionConclusionConclusionConclusionConclusion

Remarkable progress has beenrecorded towards the realization ofthese objectives. Of the currentannual gas production of about2,000 bscf, about 40% is flared. Thisis a drastic drop from the 70 percent proportion flared before theadvent of this administration. Thehitherto flared gas is beingchanneled into gas poweredprojects for rapid utilization andmonetization with a view tomaximizing value addition to thenation’s natural gas resource by2010.

Domestic gas consumption isexpanding as a result of theongoing power sector reforms whilegas export which was non-existentprior to 1999, has received a strongboost.

As a result of various projectsestablished, total gas utilized in thecountry increased from about 197million standard cubic feet per day

mmscf/d in 1999 to about 573mmscf/d in 2004. Substantialdemand growth is expected in thisdecade.

In order to achieve the FederalGovernment’s aspiration of earningthe same level of income from gasas in oil by 2010, subsidy of PMSand kerosene should be suspendedand plans to bring diesel under PSFshould be put on hold. This isbecause beneficiaries of subsidy arenot the low income earners but therich. Instead, the annual budget onfuel subsidy should be directed atdeveloping infrastructure that willimprove access to natural gas whichwill therefore encourage theestablishment of industries andgeneration of employment in thecountry. Consequently, domesticdemand for natural gas in Nigeria willincrease to about 1700mmscf/d by2010.

Senator Osita Izunaso, chairman,Senate Committee on Gas said theneed to reposition the Nigerian gassub-sector informed the initiation ofreforms by the Federal Government.He said the Senate is expecting thebill that would give legal backing tothis reforms so that , it is when wereceive the bill that we can then talkof gas act and we are looking forwardto it.

Excerpts from Financial Standard

Ongoing pipe laying construction in Apapa, Lagos

OandoNews

Oando Holds Half YOando Holds Half YOando Holds Half YOando Holds Half YOando Holds Half Year TGIFear TGIFear TGIFear TGIFear TGIF

TTTTThe 2nd Quarter TGIF tookplace at the prestigiouscivic centre on Ozumba

Mbadiwe Street, Victoria Island.

Staff from Apapa, Ikeja and theHead Office converged to relish

the quarterly staff get-together.On the list of thrills for all staffwas Seyi Law, the wave-makingupcoming comedy act whothrilled every one present to hisrib-breaking jokes. The Pot-Pourri of Music (from old school

to new school, juju, fuji, hip –hopand all the works), provided bythe DJ electrified the audienceas they danced and twined tothe tunes.

The highlight of the night came

with Naeto C and Ikechukwuperforming live to the excitementof all present. The duo droppedsongs such Whine Am Well, KiniBig Deal e.t.c

It was a night of pure fun.

(L) Naeto C and Ikechukwu performing during the event Dimeji Edwards, MD/CEO Oando Supply and Trading (L) and Wale Tinubu, GCE, Oando PLC

Cross section of Oando staff members at the event Becky Ikhioda, Admin Services Manager, Procurement & Services (L) and Sade Onyia, ED, Finance/Chief Operating Officer, Supply & Trading

(L-R) Uche Dimiri, MD/CEO Oando Energy Services, Akin Ayoola, Group Head Human Resourcesand Engr. S.A Giwa , Head Special Projects

(L-R) Bayo Lambo, Corporate Communications, Eniola a guest, Oluwole Tinubu and Wunmi Onile-Ere both of Supply & Trading

OandoNews

OOOOOando supported thePrize Giving Day ofMetropolitan Primary

School Sari- Iganmu, one of theschools adopted under Oando’sAdopt – A – School programmeon the 2nd of September, 2008.The participation in the schoolactivity symbolizes Oando’scommitment to take active anddirect participation in theempowerment of education inhost communities of itsoperations.

The event celebrated excellenceand rewarded hand work basedon academic performances,participation in school vocationalactivities, leadership, amongst

others. Two very special awardswhere presented by Oando,which were the Oando BestSchool Living Girl and BoyCertificates and cash prizes. Theawards marked the recognitionand support of the bestacademic performances of bothfemale and male students in the2008 school leaving primary sixclasses.

The continuous support ofschool activities, under theOando Adopt-A –Schoolprogramme, such as the PrizeGiving Day, Sports Day, etc.aims to further strengthen thepartnership between Oando andhost communities.

Oando Supports MetrOando Supports MetrOando Supports MetrOando Supports MetrOando Supports Metropolitan Primary Schoolopolitan Primary Schoolopolitan Primary Schoolopolitan Primary Schoolopolitan Primary SchoolPrize Giving DayPrize Giving DayPrize Giving DayPrize Giving DayPrize Giving Day

(L-R) Meka Olowola, Head Corporate Communications, Oando PLC, Oyet Gogomary, Head EHSQ,Oando PLC, a female teacher in the school and the Head Master, Mr I. B. Ojo

Faces at the WFaces at the WFaces at the WFaces at the WFaces at the World Economic Forum South Africaorld Economic Forum South Africaorld Economic Forum South Africaorld Economic Forum South Africaorld Economic Forum South Africa

Wale Tinubu, Group Chief Executive and Navaid Burney, Director Oando PLC. (L-R) Tope Lawani, Helios Partners, Wale Tinubu, GCE, Oando PLC, Bernard Mensah, GoldmanSachs, Patrick Smith, Africa Confidential and Alan von Sponeck, Goldman Sachs during the panelsession.

Aliko Dangote, President Dangote Group (L) and Bolaji Osunsanya, MD/CEO, OG & P

Goldman Sachs holds Diversity WGoldman Sachs holds Diversity WGoldman Sachs holds Diversity WGoldman Sachs holds Diversity WGoldman Sachs holds Diversity Walkalkalkalkalkwith Wwith Wwith Wwith Wwith Wale Tinubu as Panelistale Tinubu as Panelistale Tinubu as Panelistale Tinubu as Panelistale Tinubu as Panelist

(L-R) Yomi Awobokun, EA to GCE, Femi Adeyemo, Group Chief Finance Officer and BolajiOsunsanya, MD/CEO Oando Gas & Power

OandoNews 8

UpstrUpstrUpstrUpstrUpstreameameameameam

TTTTThe Minister forEnvironment Housingand Urban Development

(FMEH & UD) commendedOEPL for conducting anEnvirEnvirEnvirEnvirEnvironmental Impactonmental Impactonmental Impactonmental Impactonmental ImpactAssessmentAssessmentAssessmentAssessmentAssessment (EIA) for OPL 236and 278. The minister who wasrepresent by a Director in theMinistry Dr N.G Ekeh made thecommendations during OPL 236and OPL 278 EIA panel reviewsheld in Uyo Akwa Ibom State on5th August 2008 and PortHarcourt Rivers state on 23rd

September 2008 respectively.

During the minister’srepresentative remark at thepanel reviews, Dr Ekehcommended OEPL forembarking on the EIA beforecommencement of fieldoperation in the blocks in linewith the FMEH & UD regulation.

OEPL Concludes EIA on OPL 278 and OPL 238OEPL Concludes EIA on OPL 278 and OPL 238OEPL Concludes EIA on OPL 278 and OPL 238OEPL Concludes EIA on OPL 278 and OPL 238OEPL Concludes EIA on OPL 278 and OPL 238...gets Minister’...gets Minister’...gets Minister’...gets Minister’...gets Minister’s Thumps-Ups Thumps-Ups Thumps-Ups Thumps-Ups Thumps-Up

He further applauded OEPL forsetting the pace for otherindigenous oil firms in executingEIA studies in areas of operationas well as the Panelist,communities and otherstakeholders for participatingactively in the EIA panel reviews.The EIA panel reviews weresuccessful.

The OPL 236 review panel waschaired by Prof B.E.B. Nwokewhile other specialists in thepanel were Dr. P F Umanah,Engr. T. Ogungbemi, Dr IUdousoro, Mrs. T. O Bankole,O.A. Obanewa, C. Gomwalk,and F. Odita. Similarly, the OPL278 review panel was chaired byProf. D.O. Otobo while otherspecialists in the panel were Dr.A.C. Tse, Dr. E. T. Iyagba, Dr.A.J.T. Otoboterea, G.N. Kamalu,Celestine Gomwalk, OchubaAugusta and Fred Odita.

The Environmental ImpactAssessments act of 1992presuppose that all projectsincluding oil and gas, mustundergo an EIA study todetermine the impact of theproject on the immediatesurroundings. This is to ensurethat potential problems in anynew project are foreseen andaddressed in the project design.

Major impact indices studiedinclude but not limited to Socialand Health Impact Assessmentas well as impact of proposedactivities on the surroundingWaters, Air, Land andecosystem.

OPL 236 located, in Akwa IbomState was awarded to OEPL in2005 while OPL 278 located inRivers State was awarded in

2006. Both blocks have aProduction Sharing Contract(PSC) and are at various stagesof its Field Development Plan(FDP). It is expected that 3DSeismic data acquisition andDrilling activities will start fromlast quarter of 2008.

OEPL was represented at thereviews by Eamon LabodeAkinosho (COO) Tony Sawyerr(Well Operations Manager)Harris Ani (EHSQ Mgr) andSamuel Onyenwe (CommunityRelations Manager).

Presently, OEPL is operator ofOPL 278 on behalf of NNPC,Camac International limited,Allied Energy Resources , FirstAxis Oil & Gas ltd and alsooperator for OPL 236 on behalfof NNPC and RFO ventureslimited.

Representative of the Honourable Minister for Environment Dr N.G. Ekeh flanked by panelist addressstakeholders on 23rd September, 2008 at Aldgate Hotel, Port Harcourt

A cross section of communities representatives

(L-R) Samuel Onyenwe, Community Relations Manager, OEPL, Prof. S. R. A. Adewusi, EIA Consultantand Harris Ani, EHSQ (QA/QC) Engineer, OEPL

Akwa Ibom state deputy speaker, Honurable Okon Uwah and other members of the panel duringOPL 236 EIA Panel Reveiw

9 OandoNews

OEPL Donates Additional 75HP YOEPL Donates Additional 75HP YOEPL Donates Additional 75HP YOEPL Donates Additional 75HP YOEPL Donates Additional 75HP Yahama Out Boarahama Out Boarahama Out Boarahama Out Boarahama Out BoardddddEngine to Abissa CommunityEngine to Abissa CommunityEngine to Abissa CommunityEngine to Abissa CommunityEngine to Abissa Community

Oando Shines at WPCOando Shines at WPCOando Shines at WPCOando Shines at WPCOando Shines at WPC...As Minister beckons on others to emulate Oando...As Minister beckons on others to emulate Oando...As Minister beckons on others to emulate Oando...As Minister beckons on others to emulate Oando...As Minister beckons on others to emulate Oando

L-R: Sam Onyenwe, Community Relations Manager (OEPL), Chief Mathew Opute (Abissa Commu-nity Secretary) Tony Sawyerr, Well Operations Manager (OEPL), Aloiye Aigbonoga, Legal Manager(Oando PLC) and Mr Erekodema Tonye CDC (Abissa Community) during OEPL’s donation of anadditional (One) 75HP Yamaha Engine to Abissa Community on16th July 2008.

OOOOOando Exploration andProduction literaryblazed the trail for other

indigenous upstream companyat the World PetroleumConference (WPC), held in thecity of Barcelona, Spain.

Oando, which was one of the fewNigerians companies thatparticipated in the four-dayconference/exhibition, waseasily the star attraction toprospective investors andvisitors to the Nigerian stand atthe fair, which had as its theme:“A World In Transition: DeliveringEnergy For SustainableDevelopment.” Other companies

that participated in the exhibitionincluded Oceanic BankInternational as well as Bayelsaand Rivers states

Amongst the Nigerian content atthe event, the Minister of Statefor Energy (Petroleum), OdeinAjumogobia singled out theOando for commendations.During an investors’ dinnerhosted by head of the Nigeriandelegation to the conference, theMinister acknowledged inglowing terms, the company’sdevelopment of infrastructure forthe supply and distribution of thenation’s gas resources forindustrial and domestic uses.

“For prospective investorsinterested in coming to dobusiness in Nigeria, you shouldnot only emulate the worthyexample of the Oando Groupand other indigenouscompanies in developing thenation’s energy for sustainabledevelopment, but alsoendeavour to take theirtestimonies about the conducivebusiness environment in Nigeriaseriously,” Ajumogobia toldguests at the dinner.

“For prospective investorsinterested in coming to dobusiness in Nigeria, you shouldnot only emulate the worthyexample of the Oando Group

and other indigenouscompanies in developing thenation-’s energy for sustainabledevelopment, but alsoendeavour to take theirtestimonies about the conducivebusiness environment in Nigeriaseriously,” Ajumogobia toldguests at the dinner.

According to the minister, OandoGroup has not only remained theleading force in the downstreamsector of the nation’s petroleumindustry, but also one to reckonwith as an integrated oil and gascompany determined topromote the use of gas as aviable alternative source ofenergy for industries and homes.

L-R: Odein Ajumogobia (SAN), Honourable Minister of State - Petroleum, Dr. Levi Ajuonuma, GroupGeneral Manager, Group Public Affairs Division, NNPC and Tokunboh Durosaro, General ManagerCorporate Services, Oando PLC

Odein Ajumogobia (SAN), Honourable Minister of State - Petroleum (L) and Eamon Labode Akinosho,Chief Operating Officer, OEPL

Haulage wooden boat earlier donated to the community as part of the pre entry activity in Junethis year.

OandoNews 10

Whistle Blowing – The Corporate GuarWhistle Blowing – The Corporate GuarWhistle Blowing – The Corporate GuarWhistle Blowing – The Corporate GuarWhistle Blowing – The Corporate Guarddddd

TTTTThe term whistleblower derivesfrom the practice of EnglishBobbies (Police Constables),

who would blow their whistles whenthey noticed the commission of acrime. The whistle would alert bothlaw enforcement officers and thegeneral public of danger.

In modern day parlance it refers toan employee, former employee, ormember of an organization,especially a business or governmentagency, who reports misconduct topeople or entities that have the powerand presumed willingness to takecorrective action. The misconductmay be a violation of a policy, law, rule,regulation and/or a direct threat topublic or corporate interest, such asfraud, health/safety violations, andcorruption and which usually hasadverse effects on the organization.

Whistle blowing over the past fewyears has been a critical tool forexercising control over corporateorganizations, by exposing wrongdoing, and setting the machinery inmotion for punishment of such wrongdoings. it provides the platform forwhich prevention of such wrongdoingin the future can be put in place.

Some famous whistleblowers includethe following:

• Jeffrey Wigand, a Brown &Williamson executive whoexposed the Big Tobaccoscandal, revealing thatexecutives of the companiesknew that cigarettes wereaddictive and approved theaddition of carcinogenicingredients to the cigarettes.

• David Franklin, a former Parke-Davis employee (a division of

Pfizer) who exposed illegalmarketing of Neurontin(gabapentin), an epilepsy drug,for relieving pain, headaches,bipolar disorder and otherpsychiatric illnesses. The caserevealed that the companymarketed the drug for theseillnesses while withholdingevidence that the drug was noteffective for these illnesses. Afterinitially denying wrongdoing,Pfizer pleaded guilty to criminalviolation of the Food, Drug andCosmetics Act and paid criminaland civil fines of $430 milliondollars.

• Linda Tripp, a former White Housestaff member who disclosed tothe Office of IndependentCounsel that Monica Lewinskycommitted perjury and attemptedto suborn perjury, and PresidentBill Clinton committedmisconduct, by denying theClinton-Lewinsky relationship inthe Paula Jones federal civil rightssuit.

The Board of Directors recentlyapproved a Whistle Blowing Policy forthe Company, being a World Classentity and a champion of goodCorporate Governance

The Policy enables staff to raisecertain concerns about the followingactivities;

• Crimes;• Fraud, bribery and corruption;• Contravention of the code of

business conduct & ethics e.g.insider dealing, conflict of interest,facilitation payments, etc;

• Abuse of office or responsibilityin connection with unauthorizedactivity for personal gain;

• Compromise of company’sEHSQ procedures;

• Sexual or physical abuse;• Other unethical behaviour.

in a confidential manner, and receivefeedback on the action taken. A keyfeature of the whistle blowing processis the need to maintain confidenceand protect the identity of a reporterwhere possible..

To further underscore the importanceof whistle blowing in corporategovernance the Investment andSecurities Act 2007 in one of itsinnovative provisions providesstatutory backing for whistle blowingin Section 306 as follows:

“An employee of a public companyshall have the right to disclose anyinformation connected with theactivities of his work place whichtends to show that a criminal offencehas been, is being, or is likely to becommitted, that a person has failed,is failing, or is likely to fail or omit tocomply with a legal obligation, or thatsuch crime, failure or omission islikely to be deliberately concealed “

The Act also makes provision forprotection of such employees inSection 306(5):

“No employee shall be made tosuffer any detriment on the groundthat he has made a disclosure underthe Act. Where an employee suffersany detriment for such a disclosure,he can make a complaint to the SEC,and the SEC after investigation if itfinds that this provision has beencontravened, order the re-instatement and payment ofcompensation to the employee,where the employee is dismissedthe employee shall be entitled to

compensation which shall becalculated as if he had attained themaximum age of retirement or hadserved the maximum period ofservice”

It should be noted however that suchreports made by employees shouldbe in good faith, it does not matterthat the report is wrong as long as thereporter had an honest belief that thereport is genuine.

It should also be noted that whistleblowing is a tool which is used toprotect a company and not one whichis used to harm it. for example if thisprocess is not put in place the reportermay feel compelled to make thereport to the press or a lawenforcement agency, this will certainlyexpose the company to adversepublicity which is certainly not goodfor any public company.

A hotline facility is a critical tool in theimplementation of the whistle blowingprocess. A hotline is usually operatedby an independent company whichwill provide different means of makinganonymous reports (telephone,email, fax). The purpose of the hotlineis to encourage reporting ofsuspected wrongdoing and to assistin the detection of fraud.

In conclusion, all staff have a duty toensure the overall success andgrowth of our company, this is one ofthe ways by which the Company cangain its rightful place amongst otherInternational blue chip companiesthat have imbibed good corporategovernance.

By Ani Chikere Obinna

Compliance Officer

11 OandoNews

Social Diary

Bamidele Odufuye and Naomi Odufuye (EHSQ) (R) during their engagement ceremony at the Emokaroresidence in Lagos.

Oyedayo Oyefi (HCM) and his lovely bride Titilayo during their engagement ceremony at Vining Hall,Archbishop Vining Memorial Church, GRA, Ikeja, Lagos.

(L-R) Ezekiel Oloko, Samuel Boyo, Hassan Lawal, Hakeem Reheem, Innocent Akpan, Akpo Owhojegheri,Joseph Sanyaolu, Oando drivers who recently graduated from police college Ikeja,

Ngozika Achebe’s (HCM) son, Chimdile was one on Saturday 6th September, 2008

MorMorMorMorMore picture picture picture picture pictures fres fres fres fres from Oandos’ Half Yom Oandos’ Half Yom Oandos’ Half Yom Oandos’ Half Yom Oandos’ Half Year TGIFear TGIFear TGIFear TGIFear TGIF

Samuel Mbanaga, CS & L (L) and Toyin Araromi, Compliance Manager Wonuola Oyeledun, Ukinebo Isibor both of IT Dept with Joke Oyebanji, OEPL