Jan - March, 2006. VOL. 5, NO. 1A Quarterly In-house Journal of Oando Group

Oando signs forOPL 278 with NNPC Oando Plc, the leading energy

service provider has onceagain added another feather to

its hat as it signed the ProductionSharing Contract (PSC) for its firstoperated oil field in the history of thecompany. The PSC which covers oilblock 278 Niger Delta onshore Nigeriawas signed between the Oandoconsortium and NNPC at 10.00 am atthe NNPC Towers, Abuja on the 19thof January 2006.

The consortium is made up of OandoProduction and DevelopmentCompany (OPDC), Camac

International Limited, AlliedEnergy Resources and FirstAxis Oil & Gas Ltd. Oandoleads the consortium with 60%of the participating interest ofthe rights and obligationsunder the agreement, Camacand Allied Energy both hold15% while First Axis Oil & Gasholds10% interest.

It would be recalled thatOando met the December 15,2005 deadline of DPR for thepayment of the signaturebonuses by winners of the oil

In 2005, Oando Plc evolved frombeing a largely DownstreamMarketing Company, to an Integrated

Energy Group (now includingExploration & Production, Refining,Energy Services, Power and Gas) withvaried interests and assets spanningthe entire Oil & Gas Energy value chain.In recognition of this fact, appropriatebusiness operating models andsuppor ting organizationalarrangements were implemented,particularly the Group Office and theGroup Leadership Council whichprovide strategic direction for the entireGroup. Up to this point Oando Plcremains the first and only suchindigenous Group in Nigeria.

It is therefore necessary to reinforcethe agreed Vision and Mission of thecompany to all employees across theGroup.

Our VisionA vision is a statement giving a broadaspirational image of the future that anorganization is aiming to achieve. It isa long-term desire, dream or ambition. A vision is fundamental to thepersonality of an organization andhardly changes unless there is afundamental or major shift in acompany’s business focus andsupporting strategies.

Oando’s Vision is:

“To be the Premier CompanyDriven by Excellence’

In Oando, our Brand Essence isService Excellence, we take service to

the highest level. So we can ensureour service is unmatched. Our MissionA mission statement defines the corepurpose of an organization – in otherwords, why it exists and what it does.

At Oando, our business activities areprimarily focused on creating valuefrom opportunities within the Energyindustry. Whilst our playing field mayhave enlarged over the last few yearswith our diversification into other areasof energy solutions other than theDownstream sector, our focus on beingthe premier company and attaining

Oando Plc’s Vision and Mission Statementsexcellence in all we do still remainsfundamental to who we are.

The recent call for excellence in serviceand execution across the Group is areinforcement of our relentless questto attain the premier position ineverything we do when benchmarkedagainst performance metrics thatextend even beyond our industry.

This is captured in our chosen MissionStatement, which forms the characterof who we are and what we do:

“To be the Leading IntegratedEnergy Solutions Provider “

The company’s Vision and Mission bothform the basic guiding philosophies forour operations; they are the drivers foreverything we do - how we competeand how we win in the marketplace. Everyone should ensure theseideologies and principles are adheredto and become an integral part of ourculture (The Oando Way), which will beaggressively driven in this year.

Oando’s Vision and Mission must driveall that we do internally and externallyas we continue to create superior valuefor all our stakeholders.

block bid, having paid $25.5msignature bonus for OPL 278 prior tothe expiration the deadline.

Commenting on this notableachievement, the Group CEO ofOando Plc, Mr. Wale Tinubu said thatthe signing is history in the makingfor the company as this meant thelaunch of Oando into the upstreambusiness which invariably furtherreinforced it as an integrated energysolutions provider spanning theenergy value chain.

The Chief Executive Officer of OPDC,Mr. Labode Akinosho on his own partstated that “the initial review on theoil block indicated promisingpotential and as the company takesgiant strides with full exploration ofthe oil bloc through the PSCagreement, the company’s goal is toimmediately fast track the explorationappraisal and the potentialdevelopment of the bloc”.

BRAND ESSENCE

Service Excellence: At Oando, we take servicedelivery to the highest level. This unmatched qualityservice is consistent at every point where we come incontact with our customers.

Performance Driven:Our drive for excellence derives froma deeply rooted passion to succeedin a highly competitive market.

Proudly African:We are proud of our African heritage.As citizens of Africa, we strive to setstandards that should become thebenchmark for the region. Thistranslates into creating new businessopportunities that will bringdevelopment to Africa.

Dynamic and Progressive:We adopt a fresh, bold approach todoing things. If it means going againstconvention in order to satisfy ourcustomers, we will readily roll up oursleeves to deliver.

Consistent Quality Experience:We never compromise qualitycustomer service.

Brand Essenceand

Muscles

BRAND MUSCLES

Engr. Funsho Kupolokun, Group MD, NNPC;Dr. Edmund Daukoru, Minister of State for PetroleumResources and Mr. Wale Tinubu, Group CEO, Oando Plcat the signing in Abuja

OandoNews 2

Oando News

EDITOR

Tokunboh Durosaro

ASSISTANT EDITORS

Niyi Olowola

Olufemi Ashipa

Sumbo Olajubu

Toyin Ogundokun

CONTRIBUTORS

Abiola Lawal

Sade Lawal

Lere Odusote

email: oandonews@oandoplc.com

He is a Chartered Engineer (C.Eng) of the Institute ofChemical Engineers.

Labode AkinoshoManaging Director, Oando Production DevelopmentCompany (OPDC)

Labode Akinosho is the ChiefExecutive Officer/ ManagingDirector of Oando ProductionDevelopment Company (OPDC),a position he assumed inNovember 2005.

Prior to assuming this position,Labode was Senior ReservoirEngineer having previouslyserved as a Field Production

Service Manager at Anadarko Algeria Corporation (asubsidiary of Anardarko Petroleum Corp. Houston Texas,USA). There amongst other things, he was responsiblefor designing and implementing a systemic reservoirsurveillance program for the Ourhoud Field includingrecommending the software to conduct the surveillanceand reservoir engineering operations such as well testdata analysis and interpretation (Saphir), voidagereplacement analysis, PLT interpretation (Emeraude), wellmonitoring and so on.

Before joining Anadarko, Labode had garneredconsiderable industry experience working in SaharaEnergy Field Company (subsidiary of Sahara EnergyResource Ltd. Isle of Man) between 2001 and 2005, as atechnical Consultant for Marginal Field Application/ JDZApplication and as a Senior Production/ PetroleumEngineer between 1997 and 2002 at Anadarko AlgeriaCorporation. He had also occupied various positions atdifferent times in his career at Amoco (UK) ExplorationCompany (1992-1997), Nowsco (UK), Aberdeen, Scotland(Sep. 1992- Oct. 1992) and Chorley Engineering Limited,Aberdeen, Scotland (1990-1991).

Labode’s impressive educational qualifications include aPost Graduate Diploma and an Msc. in OffshoreEngineering obtained from the Robert Gordon University,Aberdeen, Scotland, a Diploma and an Msc. in PetroleumEngineering from the Imperial College, University ofLondon, UK and a Diploma in Business Administrationand MBA (ongoing) from Edinburgh Business School,Heriot Watt University, Scotland.

Labode has also undergone several Technical Coursesand acquired special skills in Technical software relatingto his l ines of exper tise (Petroleum & OffshoreEngineering).

He enjoys traveling and learning new languages.

Oando Plc recently engaged the services of twohighly qualified and experienced individuals tooversee its Refining and Exploration & Production

businesses. They are:

Felix EkundayoManaging Director, Oando Refinery Ltd.

Felix Ekundayo is the ManagingDirector of Oando RefineryLimited. He assumed thisposition in December 2005, afterspending several years acquiringbroad Engineering designexperience, spanning feasibilitystudies through to detaileddesign, commissioning and plantoperations on refinery,petrochemical and gas

processing plants.

Prior to assuming this position, Felix was a Consultant forNexant Limited, London between 2000 and 2005 whereamongst other responsibilities, he undertook commercialand due diligence projects on the privatisation of ElemePetrochemical Company, the Port Harcourt RefineryCompany and an LNG project in Equatorial Guinea.

Felix began his working career in 1990 at Foster WheelerEnergy Limited as a Process Engineer. There, he wasresponsible for Process design covering grassrootsrefineries, gas processing plants, amine treatment units,sulphur recovery units, safety equipment, plant flares, andplant utility systems.

In 1994, he moved to ICI (EUTECH), Wilton, where hespent the next three years, first as AssistantCommissioning Manager and later as PlantCommissioning Manager, primarily responsible forplanning and managing equipment/ plant modifications,pre-commissioning and commissioning activities, start-upsand plant operator training.

From there, he moved on to Stone & Webster, MiltonKeynes and between 1997 and 1999 was a Senior ProcessEngineer responsible for a host of duties ranging fromplant design through to plant commissioning support.

In 1999, Felix joined Foster Wheeler Paris, France, andwent from being a Senior Process Engineer to being theLead Engineer, working on Porto refionery as well asPetrogal’s Refinery Wax Hydrotreater in Sines, Portugalto meet year 2000 specifications.

In the year 2000, he left Foster Wheeler for Nexant Ltd.And from there, joined the Oando Group.

Felix has a Bachelor’s Degree (B.Eng. Hons) in ChemicalEngineering from the University of London and an MBA(General) from Exeter University, Exeter.

Oando Strengthens its Group Structure- Employs new Management to oversee Oando Refineryand Oando Production Development Company (OPDC)

During the visit, the Group CEO of Oando, Mr. Wale Tinubuexplained the history and growth of the company especiallyin investment, turnover, staff strength and corporategovernance since the privatization of Unipetrol NigeriaPlc.

The staff strength of the company rose from 420 in year2000 to 556 in 2005. The company within the periodattracted and retained extremely talented managers,especially dynamic Nigerians who have been successfulat leading companies abroad. The share price of thecompany rose from N26.9 in 2000 to N92.0 in 2005 whilemarket capitalization stood at 50.2 in 2005 from 4.2 in2000. The company also championed different community/Social Responsibil ity programmes as it awardedscholarship to students in Bundu and Onne communitiesin Rivers State.

Speaking further at the event, the Group CEO appealedto the Federal Government to link Benin Republic, Togo,Mali, Niger and other West African countries by rail. Hemaintained that linking the sub-region by rail would furtherpave way for Oando to export products unhindered sincerail is considered as the cheapest and most secure meansof transportation.

In 2000, the then Unipetrol was privatised by the Bureaufor Public Enterprises (BPE) in a move which saw Oceanand Oil become the core investors after acquiring 30%

equity stake of the company from the Federal Government.Since then, Oando has moved from being just an oilmarketing company to being a leading integrated energysolutions provider.

The significant achievements by the company within a fewyears of the privatization exercise gave the BPE anexcellent reason to organize a tour of the company’sfacilities as part of its evaluation and subsequentpronouncement as a success story of the FederalGovernment’s privatization programme.

In attendance for the facility tour were Mr. KayodeKhalidson, Project Manager, Rail Team; Mr. C. Ojukwu,Project Manager, Power; Mrs. Rabi Ahmad, Asst. Director,Stakeholders Affairs Unit; Mrs. Chukwuma Nwokoh, Asst.Director Public Communication; Mrs. Offiong Anyanwu,Mr. Jude Odu, Mr. Ema Edison and members of the SenateCommittee on Privatisation led by Sen. Saleh U. Danboyi– Committee Chairman. Others present were staff of theNigerian Railway Corporation and the Ministry ofTransportation.

BPE , Senate Committee on Privatization visit Oando

The 1st quarter of the year came withloads of exciting opportunities forOando Plc. The quarter started with

the launch of the “New Look AwolowoRoad Station” the first in a series ofOando retail station earmarked for suchrenovation. This station is one of Oando’shigh-sales-turnover stations with a robustlevel of commercial activity and providesgreat potential for the company’s Non-Fuel revenue business with its newpartners on location.

Oando also signed a Production SharingContract (PSC) for its first operated oilfield with NNPC. This is the first time suchan agreement would be made in thehistory of the company and is certainly alaudable achievement.

Another launch event that took place inthe last quarter was the Oleum SL launchcum Car Show, held on the grounds ofthe prestigious Oceanview restaurant.This was a first of its kind, not just forOando, but within the Oil Marketingsector. The well attended show broughtin various people from different sectorsof the economy.

The long awaited bi-annual Oil IndustryGames also took place within the lastquarter. Details and photographs of theseand more have all been captured in thisexciting read for you.

This edition promises to be informativeas well as enjoyable; we hope you haveas much fun reading it as we did puttingit together.

Happy reading!

Note from theEDITOR

3 OandoNews

In its commitment to ensuring superior consumerexperience, Oando Plc, Nigeria’s leading integratedenergy solutions provider, launched a new class of

premium motor engine oil, Oleum SL at the OceanviewRestaurants, Victoria Island, Lagos on Friday, March 3,2006.

With this entry, Oleum SL becomes the flagship product ofthe company and the highest in terms of quality. It is a highperformance multigrade lubricant for modern day gasolineand diesel engines, conforming to the latest API (AmericanPetroleum Institute) SL/CF-4 and ACEA E5 specification.

This top of the range, durable and long-lasting lubricantprotects engines form overheating and soot formation. Otherbenefits of this high quality product include extendeddrainage intervals; exceptional anti-wear and anti-corrosionproperties, efficient protection against bore polishing;exceptional viscosity stability in operation.

Part of the activities outlined to launch this product was ahigh profile car show (the first of its kind in the petroleummarketing sector) organised to run from the day of thelaunch, March 3rd to March 4th, 2006. The open invitationcar show, which afforded members of the public and caraficionados the opportunity to see 2006 models of exoticcars at a closer range, was organised in partnership withreputable motor companies such as Audi Centre,BriscoeFord, Car Link, Chevrolet, Coscharis, Dana Motors,Elizade Motors, Honda Place, Hyundai Motors, and StallionMotors. On display at the motor fair were the latest top-of-the-range SUVs and saloon car brands such as BWMs,Mercedes Benz, Toyota, Honda, Ford, Kia and Volkwagen. Commenting on the product launch, the Chief OperatingOfficer of Oando Plc, Mr. Kamar Bakrin said, “the launch ofOleum SL is a display of our unparalleled commitment tocustomer satisfaction at Oando. We are conscious of thecare and attention most car owners give their cars and wehave formulated a product that conforms to internationalquality standards to assure customers of guaranteedperformance always. In 2006, we will continue toaggressively enlarge our lubricant market share and weexpect Oleum SL to contribute significantly to increasedlubricants volume sales and profitability to the delight of ourshareholders.”

Still on the product launch, the Lubricant Manager, Mr. AyoOsibogun commented further, “we are proud to presentOleum SL, the premium engine oil and the latest addition tothe Oleum range of products. The product gives longer drainintervals between oil changes in total safety and is morereliable than other mineral based ACEA E3 type motor oils.Oleum SL contributes effectively to reducing vehicledowntime for servicing requirements. Its high performanceis seen in its compliance with the EURO 2 and the newEURO 3 technologies.”

According to the Chief Marketing Officer, Commercial ofOando Plc, Mrs. Lara Banjoko, who commented on theOleum Car show, “As the ‘future’, it is only natural for Oandoto be the trailblazer in customer satisfaction. The OleumCar Show is to delight our customers and the public byenabling them preview the cars of the future free of chargeand to introduce them to our quality products required tosupport such premium cars. We know most exotic carowners are interested in ‘spoiling’ their cars and Oando willlet them know just how, at the Car Show. Being a premiumproduct, the association of Oleum SL with premium cars isa natural synergy.”

Oando Launches Oleum SL- Organises Premium Car Show

Mr. Oseme with Mrs. Lara Banjoko, Chief Marketing Officer,Commercial and Mr. Abiola Lawal, Chief Strategy Officer

Kamar Bakrin, Chief Operating Officer, Oando Plc, officiallylaunching the new lubricant, Oleum SL

Mr. Ayo Ajose-Adeogun, Chief Marketing Officer, Retail,Oando

Mr. Oseme, General Manager, BriscoeFord endorsing theproduct

A cross section of Oando Management staff and otherinvitees at the launch

Dr. Chris Onuoha, Head, EHSQ with Mr Manish Dayanani ofStallion Motors

Femi Ashipa, Corporate Communications Officer with Mrs.Asekun, Executive Director, Gaslink, at the venue of the event

A display of cars at the launch

OandoNews 4

ATM Consortium will facilitate quick and convenient cashwithdrawals for customers through its installed ATM machine.

In 2002, Oando introduced its strategy aimed at maximisingthe use of premises space at its retail outlets through thecreation of a Non- Fuel Revenue (NFR) Unit. The mainobjective of this initiative was to restructure selected OandoRetail Outlets to provide a wide array of services tocustomers, thus enhancing the service experience at theseoutlets. These service stations will provide valuable servicessuch as telecentres, convenience stores, banking and quickservice restaurants amongst others, providing Oando’scustomers with a ‘one-stop-shopping experience” in its retailoutlets, whilst earning additional revenue for the company.The Company plans to roll out more of these model stationswithin the year.

According to the Chief Marketing Officer, Retail of Oando,Mr. Ayo Ajose-Adeogun, “In our business, superior consumerexperience is key and we believe our partnership with TasteeFried Chicken Ltd., Tastee Pot Ltd., Nu Metro Media Storesand ATM Consortium will help deliver on the “consumer-delight” objective of Oando. The launch of this new look stationis also our way of saying welcome to the year 2006 to all ourconsumers. “Oando is the future” and with the modernisationof this service station, we are bringing an early taste of the“future” to our customers.”

In line with its superior customer service thrust for 2006,Oando, Nigeria’s leading Energy Company launched its“New Look” Service Station at 25, Awolowo Road, Ikoyi,

Lagos on Saturday, January 14, 2006.

This Service Station is one of Oando’s high-sales-turnoverstations with robust commercial activity. The decision torestructure the station was based on its location and potentialto generate increased revenue for the company’s Non-FuelRevenue business. This move is in line with Oando’s initiativeto drive the growth of its Non-Fuel Revenue, which recentlybrought about the signing-on of four new partners namelyTastee Fried Chicken (TFC) - the leading quick servicerestaurant in the country, Tastee Pot Limited (a subsidiary ofDe Tastee Fried Chicken Limited), Nu Metro Media Store – apopular South African owned entertainment/media outfit andATM Consortium – the leading provider of off-site ATMs inNigeria.

In addition to the offerings from Oando (PMS/Petrol, Diesel,Kerosene, Gas, Lubricants, Car Wash and Motorcycle bayservices), Tastee Fried Chicken and Tastee Pot Limited willprovide fast food & African dishes for both “eat in” and “takeaway” consumers; Nu Metro Media store will provide CDs,DVDs, Tapes, reading materials, audio/visual home andrecreational goods and essential lifestyle merchandise, whilst

Oando Launches “New LookAwolowo Road Service Station”

Commenting on the launch, the General Manager, Retail ofNu Metro, Mr. Glen Simes said, “Providing multiple offeringsat convenient shopping locations has become a fashionabletrend internationally. The newly refurbished Oando ServiceStation on Awolowo Road charts a new dimension toconvenience shopping and entertainment in Nigeria. Oandois a dynamic and future focused company and we see thispartnership as a strong platform to actualise our expansiondrive in Nigeria.”

The Managing Director of De Tastee Fried Chicken Limited,Mrs. Pamela Olayinka Adedayo comments, “Our mission isto produce and offer high quality food at value-for-moneyprices, in a friendly and conducive environment. We believethat the partnership with Oando will create the convenientand pleasant atmosphere that will attract discerningcustomers. This launch is the beginning of several otherpartnerships with Oando as we aim to be the quick servicerestaurant of choice for Nigerians.”

ATM Consortium has already installed 12 fully functional ATMterminals at Oando retail Outlets, whilst three more arepresently under construction. The company plans to deployabout 80 ATM points nationally in Oando Service Stationsbefore the end of the year.

A frontal view of the newly launched Oando Service Stationon Awolowo Road

(L-R) Ms Tokunboh Durosaro, Mr. Adedayo, Mrs. Pamela Adedayo& Kamar Bakrin

The COO of Oando Plc, Kamar Bakrin giving his remarks atthe launch

Mr. Glen Simes, General Manager, Retail, Numetro and Mr.Kamar Bakrin, Chief Operating Officer, Oando Plc

ED, TFC, Bunmi Adedayo makinga speech at the event

Engr Giwa, Head, Engineering,Oando Plc giving his remarks

Ayo Ajose-Adeogun, CMOR,playing the role of an attendantat the new look station

(L-R) Dr. Chris Onuoha Head EHSQ, Yusuf YilaHead IT, Folami Abubakar (CFO)

(L-R) Mr. Ayo Ajose-Adeogun (CMOR), Mrs. Lara Banjoko(CMOC), a guest, Mrs. Chinwe Chiji-Nnorom Head ICA, YusufYila Head, IT

Invited members of staff at the launch

Head, Business Development (ATMC),Segun Adeleye giving his speech

5 OandoNews

In the last article we likened the recordbeing set by the oil prices to exploits oftennis maestro Roger Federer,fortunately and unfortunately (dependingon which side of the divide you are, likeRoger’s recent form in the ATP mastersseries, Oil prices have remain in top formas well. Various theories and predictionshave inundated us forecasting the priceof oil for 2006. History has taught overand over again to l isten to thesepredictions in setting national budgetsand determining company revenueforecast. This article is set to discuss afew of those.

The estimate of world oil demand growthin 2006 was slashed recently by 300,000barrels/day to an average 84.74 millionbarrels/day, down from its previousprojection of 85.08 million bythe International EnergyAgency (IEA). The IEA, aParis-based inter-governmental bodycommitted to advancingsecurity of energy supply,economic growth andenvironmental sustainabilitythrough energy policy co-operation), attributed thedevelopment to high oilprices, which it says are fasteroding crude oil demand.

In its oil market report, the IEAsays that there is evidence ofdemand weakness in suchregions as Southeast Asia,however, China and NorthAmerica will continue toincrease consumption thisyear, no matter what the price. It isbecoming increasingly clear thatSoutheast Asia, which had been one ofthe key engines of global oil demandgrowth, is feeling the effects of high oilprices, especially in Indonesia, Thailandand the Philippines. According to the IEA,the available data points to continuedhigh pricing for all of 2006.

IEA expects non-OPEC oil production toaverage 51.3 million barrels/day in 2006,or 200,000 less than previously expected.The reduction is due to a large cut of500,000 barrels/day for the average inthe first quarter of the year on the backof a number of unscheduled outages inthe Gulf of Mexico, the former SovietUnion, Canada, Norway and elsewhere.Non-OPEC supply is now expected togrow by 1.2 million barrels/day, or 2.4%,this year, down from a previous forecastof 1.3 million. Nigeria and other African

Oil Pricing: Outlook for 2006

countries are expected to contribute465,000 barrels/day, or 40% of the total.

In response to the undulating prices,OPEC also in March issued a slightdownward revision to its 2006 forecastfor global oil demand. According toOPEC, world oil demand is forecast togrow by 1.5 million bpd, or 1.8 per cent,to average 85.5 million bpd, higher thanlast year’s one million bpd but only halfthe exceptional growth seen in 2004.

Oil Prices May Drop

Oil Prices may possibly drop in themedium to long term significantly. In thewake of hurricanes Katrina and Rita, oiland gasoline prices hit record highs, innominal terms. Within weeks, however,

a combination of factors (a fairly quickrecovery of both drilling and refiningactivity, along with a rise in imports)brought about a sharp drop in both.Unfortunately, the prices of both crudeand refined products have risen over thepast month, bringing them uncomfortablyclose to their immediate post-hurricanehighs. Even though prices, once again,eased a little in early February, the singlemost important question regarding theoil price outlook remains: How much ofthe recent price r ise is due tofundamentals and how much is due tospecial factors, such as the standoff overIran’s nuclear capabilities and unrest inthe Niger Delta.

Growing Demand

While special factors have played a rolein recent price hikes, the tripling of oil

prices since early 2002 is almost entirelydue to fundamental market forces,including the near elimination of sparecapacity in OPEC. Basically, the demandfor energy has been growing faster thanthe supply. While some improvement isexpected, these fundamentals areunlikely to change significantly over thenext couple of years.

Meanwhile, despite evidence that thesupply side of the energy markets isimproving gradually and inventories arerising slowly, the greater volume of oilcoming into the market may not beenough to meet the strong growth indemand. OPEC seems to be happy withthe current state of affairs (high pricesand strong growth) and is in no hurry toboost production by much (assuming itcan).

Based on these market fundamentals,most experts believe that oil prices willaverage at least $64 per barrel in the firstquarter and then fall gradually, reaching$60 by year-end, as economic growth inboth the United States and China beginsto slow a little and rising inventories helpto calm market fears. Assuming that tight

market conditions continue to ease onlygradually over the next few years, theearliest prices will get back to pre-2002level will be around 2010.

The Vagaries

The longer prices stay high, the greaterthe likelihood that they will fall. In manyways, oil is not much different than othercommodities when markets are tight.Unlike the mid-1970s and early 1980s, itis economic growth that is driving oilprices in the current business cycle,rather than vice versa. In other words,over the last few years, there has beennothing peculiar to oil, natural gas, or coalthat has driven up their prices andmaintains them at elevated levels.

What sets oil markets apart from othercommodities is the role of the OPECcartel, when oil markets are tight (as they

are now), the cartel can exert maximumpower. At other times, though, OPEC hasbeen much less powerful (e.g., the late1980s and 1990s). While oil marketsremain tight and as OPEC’s share ofproduction rises — a trend that GlobalInsight projects for the near-to-mediumterm — the cartel will remain in thedriver’s seat. But the longer OPECsucceeds in keeping prices high, thegreater the chance that, in time, its powerwill once again be eroded.

World Energy Oil Outlook

Crude oil prices started 2006 withrenewed vigour. By the end of January,Brent crude oil reached a new high ofUS$66/barrel amid geopolitical andsupply uncertainties in Nigeria and Iran,as well as colder weather in variousOPEC countries. A bout of profit-takingand long liquidation by hedge funds andspeculators on the futures market hassince seen prices retreat to belowUS$60/b. However, there are a numberof market forces at play that are likely tokeep prices sustained.

Iran could respond or even pre-emptmilitary action in a number ofways. This outcome wouldtherefore have significant oilprice implications-crude ofUS$100/b could not be ruledout. Finally, a 20% probabilityis attached to the outcome inwhich Iran does not completethe nuclear fuel cycle, in whichcase the oil price premiumwould be relatively modest.

In addition to the tensions withIran implied the centralscenario, with their long-termoil price implications, are othermore immediate concerns.The potential for further oilsupply disruption in Nigeriaremains. Currently, nearly500,000 b/d of Nigerian oil isshut in because of attacks by

rebel groups in the Niger Delta.

Expectedly, Nigeria will continue to be amajor issue in terms of supply securityup to and probably beyond next year’selections, providing periodic upwardincreases in oil prices. Fur thergeopolitical concerns centre on thecontinued attacks on Iraqi pipelines (thecountry’s oil production fell to an all- timelow of 1.5m b/d in January, against aproduction capacity of 2.5m b/d) and adownward spiral in relations between theUS and Venezuela. Finally, there remainongoing concerns that the third quarterof 2006 may see a repeat of last year’sactive hurricane season, which causedsuch widespread disruption in upstreamand downstream oil facilities in the USGulf of Mexico. All these worries arecontributing to an environment in whichincreasingly nervous oil traders arefinding it more difficult to holdaggressively short positions.

OandoNews 6

Oando at the 11th NigeriaOil Industry Games

Swimming Team (L-R): Anyiador Omolua, AdesiyakanOluyomi & Boyo Israel

Azeez Idris (Table tennis) and Ndidi Obiora (Scrabble)

Men table tennis team and table tennis coachNdali Onuche (Bronze medallist) taking a flight at the Gulfclub, Ikoyi

Afe Ikponnwosa teeing off at the games

Oando’s contingent at the march past at National Stadium

Chris Imoukhuede – Bronze medallist (Squash)

Christy Omagbemi (2nd from left) during the 100m sprint(female) at National Stadium

Frank Okeke (Silver medalist) in action

The 11th edition of the Nigeria Oil Industry Gameswas held between the 12th and the 18th ofFebruary, 2006. It was a period of fun and

excitement for staff from fourteen participating OilCompanies in Nigeria who left their rigs, pipelines,terminals and cosy offices to bond together andcompete for laurels in the bi-annual event. Thecompanies that participated in this year’s event were:NNPC, Shell, Total, Oando, Schlumberger, Addax,NLNG, Elf, ConocoPhillips, Chevron, PTI, Halliburton,ExxonMobil, NAOC.

The event took place at 3 different locations in Lagosnamely, the Chevron Club House, the National Stadium

and the Ikoyi Golf Club. Participants competed indifferent games/ sports ranging from Football to LawnTennis, Table Tennis, Squash, Swimming, 8 Ball-pool,Scrabble and Chess, Golf and 100m Sprint.

From the overall medal table, Oando came 10th with 1Silver and 2 Bronze medals. Shell came first with 12Gold, 6 Silver and 8 Bronze medals.

Oando’s Medals were won by the trio of Frank Okeke,Head, CS&L, Chris Imoukhuede, Ag. Project Manager,Engineering Department and Ndali Onuche, SalesRep., Commercial Department.

Frank won his medal in Lawn Tennis conceding in thefinal game to his opponent from Shell, to cart homethe silver medal. It was a tough match with high displayof skills by both players, but eventually, the match ended3 – 2 in favour of Shell.

Chris Imoukhuede won a bronze medal in the game ofsquash after losing to Dr. Afilaka (current gold medallist)from Schlumberger in the Semi finals.

Ndali on the other hand won her bronze medal in femalecategory for Golf.

7 OandoNews

employee productivity levels, avoid duplication ofprocesses and functions, increase efficiency andreduce cost. All these should have positive impact onour bottom line profitability.

Sustaining Oando’s growth status as a leadingIntegrated Energy Solutions Provider in Africa will reston its operational efficiencies and effectiveness. Bothreside in delivering quality products and services andthe professionalism of its management. Our coremanagement philosophies and business objectives willcontinue to generate profits and promote value-addedbusiness activities throughout our businesses in thevalue chain. Our LPG (Liquidity, Profitability andGrowth) Charter and each business entity’s ability toexecute will also be enabled by an efficient Oracle e-business suite. Our e-business suite is the platform toachieving this going forward. Therefore, there needs tobe a 100% buy-in by all employees and managementto ensure that this project is a huge success both interms of its contribution to the company and individualemployees for capacity building.

Finally as we count down to the kick-off of theimplementation of our Oracle e-business suite expectedin July, here are a few milestones that we have achievedand a list of milestones which still lay ahead.

Achieved Milestones

• Chose Oracle as the preferred platform• Signed the software license contract

The kick-off of the implementation of our OracleEnterprise Resource Planning (ERP) System isfast approaching. It is important to take stock of

all the work that has been done thus far and the manyhours of work required to complete this project. Butfirst a brief recap of what the ERP is and its benefits toOando Plc.

Our Oracle e-business suite should reflect the majorbusiness processes and operations of the company.The primary driver has been the need to better supportour processes as an Integrated Energy SolutionsProvider in Africa. In other words, Oando Plc isembarking on this e-business suite in order to makeour processes more efficient and deploy people in valueadding activities. Due to increased competition and thenature of our business, it has become necessary tode-layer our organizational structure and betterempower all employees to make more informedbusiness decisions and by so doing become responsiveto our customers (internal and external). A world classsystem is critical to enable this vision.

The e-business suite should be viewed by all staff asthe beginning of preparing Oando Plc for its next bigsteps. It is a change effort that every member of theorganization must embrace. It will bring to the fore,enhanced operational strategy and standardisedprocesses and allow for data integration enablingfunctional interdependence across all operating entities.It promises to enable us take advantage of increasedsynergies between our business units, increase

Project Synergy ERP: Ready, Set, Go• In the final stage of confirming a project manager• After an extensive RFP process, short listed 2

finalists as the implementation partner who willgive us the best chance to succeed because oftheir knowledge of their business

• Provided executive and management leveleducation for the project

Critical Next Steps

• Confirm and Mobilize Oando Project Manager• Confirm Implementation Partner• Design a Project Management Office• Form and orientate an implementation team• Business Requirements Gathering or Validation• Data Cleansing and preparation for design• Prepare Infrastructure – Hardware/Software

Installation• Start implementation• Go live in phases

I call on each and every one of you to reflect on howyou can get involved and add value in this veryimportant transformation project. I look forward toworking with all of you and If you have any questionsabout the project please reach out and ask the team.

Abiola LawalChief Strategy Officer

To put first things first, it is pertinent to express ourprofound appreciation and gratitude to the Topmanagement for their guidance, support andencouragement. Similarly, the immense contributions received fromour senior colleagues (RFM, SSM & LM) and supportteams (CS&L, Engr, Finance & IT depts) are wellappreciated. We particularly commend the effortsof CS&L team, who tirelessly provide the necessarylogistics that enable us deliver ‘consistent quality

As we commence the Q2, I am glad to informyou that, we have smashed the Q1 pre-settargets on TWP, Lubes and overall gross

margin (GM) performance. The result obviously wasnot by accident, great efforts all round. Well doneeveryone!!! Key highlights (flash) are as follows:

Q1, 2006 Performance

Bdgt Act’ % GM bdgt GM Act %‘000ltrs 000ltrs achvd N/ltr N/ltr achvd

PMS 31,499 41,154 131 3.83 4.76 124

AGO 5,368 4,121 77 3.50 6.08 174

HHK 2,568 708 28 2.50 10.51 420

TWP 39,435 45,983 117

Lubes 361 438 121 55.00 51.31 93

LPG 16 5 31 25.00 57.20 229

Market share 34

In this regard, I wish to acknowledge and appreciateall the tremendous contributions, commitment &diligence of all Kano Division Staff towards actualisingthis successful landmark.

DM Kano Lauds Division’s Performance

experience’ to our esteemed customers. Please let’skeep “sharpening the saw”. However, let me reiterate the fact that, the road aheadis still very rough and tough. So, I urge us all to doublethe pace, passion and determination, to enable uscollectively remain focus in our drive to achieve theOando group corporate goal of being “Africa’sleading Integrated Energy service provider”

Standing from left: Amosu Mukaila, Lubricant Sales Engineer Kano;Agbebi Oladimeji, Retail Sales Executive Kano Area II; RabiuAbdullahi Umar, Retail Sales Executive Maiduguri; Sade Lawal,Divisional Manager Kano; Nuhu Sadauki, Divisonal Sales ManagerKano And Augustine Imade, Divisional Engineer KanoSitting from the left: Kibia Umar, Retail Sales Executive Sokoto; WendeRose, Divisional Sales Admin Officer Kano; Husseyn Ahmed, RetailSales Executive Kano and Alasah Mutanebi, Regional DistributionManager Kano

(L-R) Oladimeji Agbebi, Retail Sales Executive Kano Area; RabiuAbdullahi, Retail Sales Executive Maiduguri Area; Kibia Umar, Retail Sales Executive Sokoto Area; Sade Lawal, Divisional Manager, Kano;Nuhu Sadauki , Divisional Sales Manager Kano and Hussyen A.Ahmed, Retail Sales Executive Kano Area I

OandoNews 8

Greater Lagos Gas Distribution – Phase IIIDevelopments so far

Gaslink Nigeria Limited wasestablished in 1988 to promote

natural gas distribution/utilization in Nigeriaafter the Federal Government liberalizedthe gas utility business, resulting in thegranting of a gas distribution zone toUnipetrol Nigeria Plc. This distribution zonewhich is known as the Greater LagosIndustrial Area comprising Ikeja, Ojota,Ilupeju, Matori, Isolo, Amuwo-Odofin,Iganmu, Ijora, Apapa and the adjoiningareas was assigned to Gaslink NigeriaLimited in July 1999, thus making it aspecial purpose vehicle for the realizationof their mutual interest in gas development

The initial project, which was divided intoPhase 1 and 2 for effective implementationcommenced with the Phase 1A project, a10 km distribution pipeline network thatbegins from Nigeria Gas Company’s (NGC)City Gate to Oba Akran through AcmeRoad, Lateef Jakande and adjoining street.

This was completed in 2001 and designedto deliver about 15million cubic feet of gasper day (mmscfd) to over 31 industries.

Subsequently, Gaslink commenced thesecond par t of Phase 1, Phase 1B,covering about 4.2 km pipeline stretch fromNigeria Gas Company’s City Gate to IkosiRoad, Oregun through Mobolaji JohnsonRoad. With this, about 5 mmscf/d of gaswas to be supplied to over 15 industrialconsumers.

Again, Gaslink embarked on andcompleted work on Phase 2A, whichcovers 84 km length of low-pressure gasdistribution pipeline network planned totake gas from the NGC’s City Gate toApapa. This phase supplies gas to about125 consumers in Apapa Port, Ikeja, Ojota,Maryland, Anthony, Illupeju, Amuwo-Odofin, Orile Iganmu, Ijora and WesternAvenue in Lagos State. Subsequently, thecompany commenced and completed workon the Phase 2B, a 27 kilometre length of

pipeline that coversOshodi, Isolo,Apakun, Airpor t,Ilasamaja, It ire,Ijesha-tedo andTincan Island.

In five years, Gaslinkhas extended a 67kmpipeline grid to all theIndustrial estates inLagos State andproven itself to be notjust a successfullocal Gas DistributionCompany, but onewith the largestpipeline network inAfrica.

Plans for the Future

The company is now about tocommence the construction of a 38km

gas line (GL III), which is designed todeliver over 1.809mmscm/d to industriesin Apapa and Tin-Can Island. Thisconstruction phase, tagged Greater Lagos(GL) Phase III project will commence inApril 2006 and is expected to run tillDecember 2006.

This is part of Gaslink’s short term plan of

Other Gas possibilities

Gaslink also plans to position itselfas the preferred Local Distribution

Company (LDC) for the West African GasPipeline (WAGP) under construction,

which will transport natural gas fromNigeria to Ghana, Togo and Benin. Thecompany, in conjunction with Oando Plchas also offered to work with LAMATA topioneer CNG (Compressed Natural Gas)driven transportation system in Nigeria.)

Gaslink’s continuous extension of itsGas pipeline is part of its objective to

continually meet and surpass itscustomers’ expectations. With the adventof CNG, we hope that vehicle fleetoperators and inter-city passenger serviceproviders will also benefit from Gas, a

cheaper fuel for their vehicles with loweremissions levels which ensure cleaner air,a higher quality of life and reduced medicalcosts that will not only benefit the users,but the country as a whole.

strategically connecting Lagos andconsolidating it before extending its Gassupply to other places like Calabar, Abuja,Republic of Benin, Togo and Ghana. Thisscheme is targeting both Industrial/ MajorGas customers and Strategic customers,like the proposed Independent Power Plant(IPP) in Tin-Can Island. The company alsoplans to provide gas within Lagos for highimpact projects like the IPP for Airport,Lagos State Water Corporation and the500mw embedded Power and Ijora PowerPlant.

9 OandoNews

For many years Nigeria hassurvived erratic power supplydue to the inability of the defunct

National Electric Power Authority(NEPA) to generate and distributeenough electricity to meet the nation’selectricity demand; thus unable to fulfilthe mandate given to NEPA when it wasestablished in 1972; to develop andmaintain an efficient, coordinated andreliable power supply system in thecountry. It was only a matter of timebefore the Federal Government ofNigeria stepped in to liberalize theindustry and improve the powergenerating and distribution capacity ofthe industry.

In 2005 the government through theNational Council on Privatisation andthe Bureau for Public Enterprises (BPE)initiated actions and policies gearedtowards achieving a speedy turnaroundin the lot of NEPA and the power sectoras a whole. The natural first steps weretherefore to change the name of thecompany to reflect its true position asa holding company in the emergingscenario and also unbundle theofferings of the company into smallerentities focusing on separate areas ofthe power production and supply chain.From July 1, 2005 NEPA becameknown as the Power Holding Companyof Nigeria (PHCN), the first step toprivatizing the corporation for greaterefficiency. For all intents and purposes,the name change was effected toclearly reflect the long term goal of theprivatisation exercise which will see theunbundling of NEPA along the lines ofgeneration, transmission anddistr ibution to create individualbusinesses with specific roles andfunctions in the power value chain.

In line with its new status, the PHCNwas issued a certificate of incorporationon May 5, 2005 after PresidentOlusegun Obasanjo had assented tothe Electric Power Sector Reform

Reforming The Nigerian Power Sector– insights to an emerging sector

Power Sector Reform Chart:

(EPSR) Act passed on March 11, 2005.Among other things, the Act providesfor the establishment of a NigerianElectricity Regulatory Commission(NERC) to monitor and regulate thepower sector for better performance.The general framework of a powersector policy is emerging with thecreation of a regulatory frameworkunder the NERC. The role of the NERCis to ensure efficiency andeffectiveness in the sector by ensuringthat consumers are protected, andprices and power supply arepredictable, stable and regular.

As the power sector enters the nextphase of its evolution, the obviouschallenge is for the sector to meet theneeds of the growing economy anddevelop an economically viable powerindustry which will enable NERC toattract private capital investment whilesafeguarding the interests of theconsumers. Over the next few years,

we expect a radical transformation inthe sector with improved capacity forgeneration and updated infrastructurefor distribution and revenue capturing.A wave of liberalisation is hitting thesector; an enabling environment isbeing created to set the sector on adrive that would enable its positivecontribution to Nigeria’s economicgrowth and development.

Oando Power is set to take advantageof the policies and opportunitiescreated by the ongoing reforms in thepower sector as it finalises its strategyto achieve and maintain a dominantposition in the emergent sector.Leveraging on the experience and skillsof its technical partners, the companyintends to play a key role in the supplyand distribution of electric power toindustrial and individual consumers.On the long term however, the companyis poised to take advantage of existingsynergies with Gaslink Nigeria Limited

WHY THE REFORM?

• Increase efficiency

• Bring accountability

• Attract Private Sector Investment

• Establish an independent and transparent regulatoryregime

ROLE OF NERC

• Take measures conducive to an efficient electricityindustry

• Safeguard the interests of the consumers

• Prevent monopolistic behaviour by operators

• Establish independent and objective decision makingprocesses

THE CUSTOMER ADVANTAGE

• Protection of rights

• Reliable, efficient and safe power supply

• Lowest possible rates

CORE ASPECTS OF THE REFORM

• The unbundling of NEPA into:

- 6 Privatised Generation Companies

- 11 Privatised Distribution Companies

- 1 Independent Transmission Company

• Independent Regulatory Commission

• Competition in new Generation Entry

• Later Competition in Trading & Retail Sales

FUNCTIONS OF NERC

• Implement, monitor and review the regulatoryframework

• Issue licenses for generation, transmission anddistribution

• Regulate the operations of the licensees

• Fix and regulate tariff

• Promote competitiveness

• Create environment for private sector participation

• Promote competition

• Ensure fair deal to customers

• Aid and advise government on all aspects of theelectricity industry

THE POWER SECTOR CHALLENGE

• Commercial viability

• Efficient operations

POWERS OF NERC

• Approval of amendment to Rules and Codes

• Setting up, monitoring and enforcing nationaltechnical – quality standards.

• Licenses: issue, renew, amend, cancel and monitor/enforce conditions

• Regulation on prices/revenue

• Appeals body in the case of accusations orcomplaints on tenders

• Review its decision whenever necessary

ADVANTAGES

• Increased Private Sector Investment

• Availability of adequate and reliable power supply

Lere OdusoteBusiness Development Manager,Oando Power

(who own and operate a 100km gasdistribution pipeline from Lagos CityGate though the greater Lagos Area)and develop Power plants.

“Over the next fewyears, we expect a

radical transformation inthe sector with improvedcapacity for generation

and updatedinfrastructure for

distribution and revenuecapturing.”

OandoNews 10

The industry looks to have anotherpromising year lined up for 2006.Fortunately, more large E&P projectsare being pursued in Africa and Asiagoing forward and fewer in the US,countries like Nigeria are therefore atverge of huge unprecedentedinvestment inflows. However, a numberof other trends below may posechallenges going forward:

• Rig availability constraints – withthe large number of drillingactivities expected in the shortterm

• Balancing R&D while loweringcosts for customers

• Providing the supermajors withthe equipment and technologythey need for large projects inWest Africa and Asia, whileserving growing independentactivity in the Gulf of Mexico andEurope

• A growing shor tage ofengineers, project managersand other skilled technicalpeople

A Rosy Future

With Oando and other Nigeriancompanies, taking advantage of thelaudable Federal Governmentinitiatives like the local content concept,oil/gas blocks licensing etc, Nigeria is

prosperity is straining service andsupply capabilities.

Locally, with the reform sweepingthrough the petroleum industry and thevery transparent 2005 Bid Round,Nigeria is also set to take advantage ofthe excitements in the upstreamindustry through the local content drive.

The Local Content Initiative

Local Content Development is aninitiative on the part of the NigerianGovernment to help develop localcapacity building in the Nigerian oil &gas industry and to enable Nigeriansparticipate actively. It can be seen asthe utilization of the Nigerian humanand mater ial resources in theexploitation and exploration of theNigerian hydrocarbon resources. Thiswill offer huge opportunities for Nigeriaas a whole to leverage on global energyservices opportunities in 2006.

That the Nigerian Government isactively promoting the internalization ofinputs in the upstream sector cannotbe contradicted. According to theNNPC, “the objectives of the Localcontent policy are to promote aframework that guarantees active localparticipation without compromisingstandards; to promote value adding inNigeria through utilization of local rawmaterials and human resources; andto promote steady, measurable andsustainable growth of Nigerian content”

It would be recalled that local contentwas made a biddable item during theauction of 44 oil blocks last year, whereNigerian companies were qualified aslocal content vehicles (LCVs) andassigned a maximum of 10 percentequity to each qualified LCV. The dreamof the FG is that as LCVs, the Nigeriancompanies get involved in the runningof the business, gets trained in theprocess and in future develop into a fullblown oil firms like any of the majors.

Challenges Ahead

Some price moderation is forecast for2006, as Gulf of Mexico production isrestored to normal levels and highprices begin to dampen demand.However, similar moderation wasexpected in 2005, and it did not occur.

Most industry observers (localand international) would agreethat 2005 was a remarkable

year in many ways for E&P operations.Continued oil and gas demand growth,high commodity prices, increased E&Pactivity and unexpected hurricanedamage have all combined to keepthings interesting for the upstreamindustry.

2005: The year of surprises

The hurricanes of 2005, Katrina andlater Rita, posed perhaps the largestshort-term challenge that the energyindustry has faced in a while. Ascustomers relied more on the servicesector for critical functions, the industryfound itself dealing with perhaps theUS’s largest natural disaster in Katrina,followed almost immediately by Rita. Asa result of the storms, production of oiland gas came to a halt. Crude oilclimbed above $70/bbl.

The impact on Gulf infrastructure washuge. The Minerals Managementservice reported that 66 producingstructures were either destroyed orsignificantly damaged, four drilling rigswere destroyed, nine drilling rigs weredamaged extensively, and six rigs wereunmoored and adrift. However, theenergy services sector respondedswiftly as barely two months later,nearly half of Gulf production wasrestored, and refining capacity wasback online within a short period.

Despite these unprecedentedchallenges, 2005 was a very good yearfor the oilfield service industry with mostservice companies repor tingsignificantly higher earnings.

Brighter 2006 in the horizon

The International Energy Agencyestimates average oil demand in 2006to be 85.2 million bpd (prior to the Q1review). The increase of 1.75 millionbpd forecast for 2006 is due largely toa rebound in US demand, as well as arecovery in Chinese demand.

Upstream activity levels are sitting at20-year highs in some cases, asoperators take advantage of high pricesto develop even the more marginal ofproper ties (a greater var iety ofproperties). However, this wave of

2006 Outlook BrightFor Upstream Business

also set for the rosy future waiting theglobal upstream business.

Oando Energy Services (OES) havingalso had a successful 2005, it is thecompany’s intention to continue todirect its growth towards becoming aworld-class service provider of reputeand value to the Oando group. Towardsthis end, the company plans to extendits Product Service Lines in 2006 toinclude:

• Solids Control & WasteManagement Services

• Oil Rigs e.g. Swamp and LandRigs

• Well-bore clean up systems• Shale Shaker Screens

At present, the company is awaitingevaluation results of tenders submittedfor some major contracts in respect ofits Drilling & Completion fluids andUpstream fuels PSL’s.

In line with its vision to gain entry intoother markets within the Gulf of Guinea,the company has concludednegotiations to take over some oilfieldservice initiatives in Equatorial Guinea,Cameroun, and Gabon, which matchOES’s existing and proposed PSLs.

Overall, 2006 promises to be a definingyear for OES, as it establishes itself asone of the growth platforms for theOando group.

End

11 OandoNews

For many, the ember months mean theapproach to the year-end andJanuary, which are usually marked

by festivities and celebrations; more so, atthe end of it all is the Christmascelebration, the end of the year and thebeginning of a new one.

While many look forward to this season asan opportunity for a timeout from work andthe stress of day to day life, others, a goodnumber indeed, sit, and wait and hope thatby some miracle, their next meal would bebetter than the last.

In reaching out to this group of people,Oando Plc spread the spirit of joy andsharing by putting a smile on the face ofthe needy in society during this periodthrough sizeable cash and materialdonations. Recipients of the cashdonations and food items such asprovisions, bags of rice, cooking oil,cartons of evaporated milk, bathing andlaundry soap, cartons of biscuit, etc,included:

- Motherless Babies Home PortHarcourt

- Old Peoples’ Home Port Harcourt,- Kano Charity Home, Kano State- Edo State Orphanage Benin City- Sir Osunde Foundation in Edo

State- Little Saints Orphanage, Lagos- Old People’s Home Yaba, Lagos

State- Kwato Motherless Babies’ Home,

Kaduna

Oando Donates to Charity- Sabon Tasha Motherless Babies

Home, Kaduna- Bwari Disable Rehabilitation

Centre, Abuja- COCIN Rehabilitation Centre,

Mangu Plateau State- School for the Blind, Gindiri- Rafiki Orphanage, Miango

At each presentation, the recipientsthanked the management and staff ofOando Plc for the gesture and prayed thatthe company will continue in its usualmanner of extending its love and goodwillto the down trodden.

Oando remains committed to improving theliving standards of people in societythrough capacity building and sustainabledevelopment. It also, as a matter ofcorporate policy, devotes a sizeableamount to charity donations and supportfor developmental Non GovernmentalOrganisations.

Oando Plc, the leading integratedenergy solutions provider in Africahas committed over N1.5m to the

sponsorship of a budding Golf player,Mohammed Muazu. Mohammed, born in1988, second out of a family of six childrenstarted playing golf at a tender age andhas par ticipated in several golfcompetitions in the last five years.However, his poor background has been ahindrance to his full success at both golfand his academics.

Having played with members of Ikoyi Cluband garnered golf skills at the amateurlevel, Mohammed has now set out forprofessionalism influencing Oando’sdecision to adopt him as a child prodigeeand help him fulfil his aspirations.

The sponsorship will cover different areasranging from Golf training, Competitionsponsorship, Academics and Welfare.

Oando Sponsors MohammedMuazu – a golfer

His par ticipation in 10 tournaments(nationwide) each year will be fullysponsored by the company covering hishotel accommodation, air tickets fortournaments outside Lagos, Localtransportation, feeding, tournament fees,Golf shoes and kits.

To ensure that Mohammed not only excelat Golf but also in his education, thesponsorship will include payment of histuition, exams fees – JAMB, NECO andSSCE. In addition, school uniforms, schoolshoes and a coach to take him on extralessons would be provided.

Mohammed has also been enlisted in theOando Medical Scheme to enable himhave proper medical attention. It isexpected that the Golfer will come out abetter player who will not only representNigeria but rule the world one day.

O ando held its first “ThankGod it’s Friday” (TGIF) for the year2006 on the 27th of January. This

quar terly occasion is a gathering ofmembers of Oando Group to promoteoneness, endear love and foster goodrelationship among staff members.

The TGIF was well attended by the Oandofamily regardless of status and levels.

Another event that made the occasionunique and remarkable was its coincidencewith the African Nations Cups 2006 hostedby Egypt. Corporate Communications

Thank GodIt’s Friday

department, the event coordinators madeit colourful by providing a projector for liveviewing of the Nigeria Vs Senegal match.Also, the contracted salsa troupe gave anoverwhelming performance that also madethe event historic and interesting.

Besides the food and drinks and, a dancingcompetition was held among staffmembers. The best dancers were promisedN50,000.00 each, following which TitiAkinsanya and Ejiro Dorlie emerged as the“Best Dancers – Couple” and smiled homewith a cool N100,000.00 between them.

Tokunboh Durosaro, Head, Corp. Comms, Jedi,Comedian/Compere for the nite and Folake AdeniyiAdeleye, Manager, HCM on the stage

Group of salsa dancers performing on the stage

Cheering at the impressive performance of thedancers at the TGIF

Couples’ dancing competitionEjiro Dortie & Titi Akinsanya, best couple dancersin action during the dancing competition

Salsa dancers performing on the stage

Kunle Iyanda, Retail Services Manager, Yusuf Yila,Head IT and Abdullahi Usman, Aviation Managerserving themselves during the dinner

Christy Omagbemi, Ajibola Deji, Toyin Ogundokun& Olajubu Olasumbo at the event

Kano Divisional Manager, Sade Lawal(centre) and representatives of theMotherless Babies’ Home