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Nigeria's Oando to double oil output in five years
24/09/2014
LAGOS (Reuters) - Nigerian energy firm Oando Plc plans to increase its oil production capacity to 100,000 barrels per day over the next five years after completing the acquisition of ConocoPhillips' Nigerian assets for $1.5 billion in July.
Oando Chief Executive Wale Tinubu said on Tuesday production capacity was currently 42,500 bpd and the company would grow through further acquisitions as it seeks to increase its market share in Africa's top oil exporter.
"We have succeeded in repositioning ourselves within the sector, and through future acquisitions ... we will seek to up our market share in sub-Sahara's upstream sector within the next five years to 100,000 boe/d in net production," Tinubu said in a statement.
Oando also reported a pretax profit of 12.53 billion naira (76.5 million) in the first half, up 103 percent from 6.15 billion in the same period a year ago, on revenue of 194.55 billion. It said it would pay an interim dividend of 0.70 naira.
Shares in Oando, with additional listings in Johannesburg and Toronto, gained 5.5 percent on the Lagos bourse to close at 25.93 naira.
Oando completed the acquisition of ConocoPhillips's upstream oil and gas business in Nigeria in July, after agreeing a deal with the U.S. company two years ago. The acquisition has helped Oando transition from being a marketer of refined petroleum products into oil and gas exploration and production.
"With the acquisition now complete and immediately cash generative the company's upstream subsidiary Oando Energy Resources ... expects annual revenue of over $600 million, and annual free cash flows of $150 million," Tinubu said.
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