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

Apr - Jun, 2008. Quarter 2

OandoNews

ContentContentContentContentContent

As part of its corporategovernance culture,Oando PLC organized

and held its 31st Annual GeneralMeeting on the 27th of May, 2008at the Nigerian Law School,Victoria Island, Lagos.

During the AGM, the annualfinancial statement of theCompany was presented, theReport of the Audit committeewas received, the dividend of N6payout to shareholders wasrecommended by the directorsand approved by theshareholders. Also an additionalpayout of one share to every 5

Human Capital ManagementParticipate in Career Fair - Pg. 2

Oando Marketing Tour Facilities- Pg. 3

Oando Insecticide Debuts- Pg. 4

Oando Gas & Power Takes Gas toTin Can Island - Pg. 5

Photo News - Pg. 6-7

OEPL Donates NYSC Quaters toHost Communities - Pg. 8

OEPL Sign GMoU with Host Com-munities - Pg. 9

Corporate Governance - Pg. 10

Social Diary - Pg. 11

In line with the 2008 Corporateobjectives of enhancing andfurther entrenching anEnvironmental, Health andSafety Quality culture in its staff,Oando PLC held its maidenedition of its EHSQ week whichcommenced in Lagos on the 9th

of June and ended in PortHarcourt on the 13th of June,2008.

The theme of the EHSQ Weekwas “PROMOTING EHSQ

Oando Hold’Oando Hold’Oando Hold’Oando Hold’Oando Hold’s 31s 31s 31s 31s 31ststststst Annual General Meeting Annual General Meeting Annual General Meeting Annual General Meeting Annual General Meetingshares bought was approved bythe shareholders.

A new director was also electedto the board. His name is Mr.Navaid Burney. He is theManaging Director of EmergingCapital Partners (“ECP”), aleading Africa-focused privateequity fund manager based inSouth Africa.

With the Group’s recording ofhuge financial growth in 2007, itaims to increase its revenuethrough the Exploration andProduction business, Gas andPower as well as Energy Servicesbusiness.

EHSQ Organizes Safety WEHSQ Organizes Safety WEHSQ Organizes Safety WEHSQ Organizes Safety WEHSQ Organizes Safety WeekeekeekeekeekCULTURE: A recipe for anincident free environment.”

The event was organized tosensitize all stakeholders on theright attitude to work and toensure continuous improvementin the areas of safety of personnelas well as maintaining theintegrity of company assets,preserving the environment andsustaining the good image of thecompany.

Key topics that were discussedbothered on Accidents on theRoad, Managing Stress at Work,Standardization and itsrelevance, Defensive Drivingand a host of other thought –provoking topics.

There was also the presentationof certificates and gift items tothose who contributedimmeasurably to an incident –free year.

The week long programme waskicked-off at the corporate HeadOffice in Lagos by the GroupChief Executive, Mr. J. A.Tinubu. Other externaldignitaries that wererepresented include theCommissioner for Environmentin Lagos State, Dr, Muiz Banire,The Head, Safety andEnvironment, DPR, Mr. G.E.Nwachukwu, Dr. John Akanya,the DG of SON and severalother speakers.

It is worthy of note that the EHSQWeek coincided with the globalrecognition of the WorldEnvironment Day which was

(L-R) Major General Mohammed Magoro (Rtd), Chairman Board of Directors, Mrs. Oredeji Delanoand Mr. Omamofe Boyo , Deputy Group Chief Executive at Oando’s 31stth Annual General Meetingheld in Lagos on Tuesday, May 27, 2008

Dr. Oyet Gogomary, Head EHSQ, Oando PLC speaking during the ‘Oando EHSQ Week’ at the La-goon Restaurant, Lagos. With him are Mr. Wale Tinubu, Group Chief Executive (right) and Dr. ChrisOnuoha, COO, Oando Terminal and Logistics (OTL).

held on 6th June, 2008. It istherefore good enough thatOando PLC, a front lineenvironmentally compliant groupand a leader in the currentinitiative for cleaner environmentthrough the use of gas asalternative source of power haschosen same period tocelebrate her EHSQ successes.

Here is wishing you an incident– free year!

OandoNews 2

EDITORIAL TEAM

EditorEditorEditorEditorEditorMeka Olowola

Assistant EditorsAssistant EditorsAssistant EditorsAssistant EditorsAssistant EditorsFemi Adeyeye

Sunmbo OlajubuOdion Aleobua

ContributorsContributorsContributorsContributorsContributorsBimbo Okoya

Samuel OnyenweToyin Araromi

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: oandonews@oandoPLC.com

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

The Lagos Business School,in its customary wayorganized its Career Fair in

Lagos on the 7th May, 2008 at thePan – African University, Ajah.

Oando was one of theparticipating companies and itsobjective was to hunt talents thatwould support its business. Alarge number of graduatingstudents stormed the OandoExhibition stand with varyingquestions for staff present at theCareer Fair. Lara Adio and LawalSade provided answers toquestions fielded by thestudents.

During the same month, thelargest African recruitment eventin the world, the Sixth Careers inAfrica Recruitment Summit in

London, took place on 23-25May 2008. The Group Head HR,Mr. Akin Ayoola attended theevent.

More than 1,500 Africangraduates and professionalsresiding across Europe andAfrica were selected and invitedto attend the Summit, chosenfrom over 14 000 applicants.Over 3000 interviews with seniorbusiness representatives from51 participating companiesamongst which is Oando PLCtook place over the course of theevent, in addition to companypresentations and informalnetworking sessions.

Candidate feedback proves thatparticipating in a Career in AfricaRecruitment Summit is a uniqueopportunity for skilled

professionals to gain exposureto senior executives frommultiple organizations in onelocation to successfully securetheir next career move.

One of the remarkabletestimonials alluded to wasmade by Mr. Akin Ayoola, GroupHead, Human Resources. Hesaid “An eye openingexperience regarding thebreadth and depth of talentavailable. The organization wasimpeccable.”

As a company driven byexcellence, Oando PLC believesstrongly in attracting andretaining the best brains in theirvarious field of endeavor thatwould complement it inimplementing its intelligentbusiness strategies.

Oando Exhibits at LBS CarOando Exhibits at LBS CarOando Exhibits at LBS CarOando Exhibits at LBS CarOando Exhibits at LBS Career Faireer Faireer Faireer Faireer Fair, Lagos, Lagos, Lagos, Lagos, Lagos...Attends Recruitment Summit in London...Attends Recruitment Summit in London...Attends Recruitment Summit in London...Attends Recruitment Summit in London...Attends Recruitment Summit in London

Lara Adio, HR Business Partner, Human Capital Management educating a visitor to Oando’s Standat the 2008 Lagos Business School (LBS) Career Fair, held in Lagos.

Visitors to the Oando stand at the event

IIIIInteresting how soon H1 seemed tohave wrapped up! More interestingwas the last quarter of the half year,

Q2 that is. In it Oando held its 31st

Annual General Meeting (AGM) inLagos, where it declared a dividendpayout of N6 to shareholders. Andeven an additional bonus of 1 to every5 new shares bought! In addition to thestory is an exciting photo page on theevent.

The cover story also includes Oando’s2008 edition of the ‘EHSQ Week’. Theevent was organised to ensurecontinuous improvement in the area ofsafety at work.

From Oando Marketing, is the story onthe companywide facility tour by ateam selected from various BusinessUnits at the Head Office. The allenterprising entity also debuts with thenew ‘Oando Insecticide’ - the sweetfragrance and potent weaponfashioned against all domestic insects.

Oando Gas and Power recordedanother milestone by laying pipesacross the Liverpool River to ensuregas supplies to industries on TinCanIsland. While Oando Exploration &Production continued to demonstrateits commitment to communityinvolvement with the donation of a twin

block of flats for Corp members and agiant haulage wooden boat to OPL 278host communities. OEPL also signeda Product Sharing Contract agreementand Global Memorandum ofUnderstanding on OPL 236 withNigerian National PetroleumCorporation (NNPC) and hostcommunities.

Q2 was not all work while it lasted asstaff had a big beach party to markthe end of the fisr t quarter. Theexcitement is captured on our photopage for your reading pleasure.

Enjoy.

3 OandoNews

OOOOOn the 27th of April, 2008the Human CapitalManagement (HCM)

team hosted 400 level studentsof the Lagos State University,Jibowu Campus on an industrialvisit. The visit was facilitated bythe Oando Corporate SocialResponsibility unit as anopportunity to educate eternalstakeholders on the unique HCMstructure of Oando PLC.

The students of the Lagos StateUniversity were led by theircoordinator, Mr. M. A. OladepoTheir main focus was onunderstanding the Oando HCMstructure as the students major

Oando hosts Students of Lagos State UniversityOando hosts Students of Lagos State UniversityOando hosts Students of Lagos State UniversityOando hosts Students of Lagos State UniversityOando hosts Students of Lagos State Universityin Human Relations andPersonnel Management withhopes of being employed as HRmanagers or officers withnational or Multinationalorganizations in Nigeria. The visitwas a graduation requirementand part of curriculum of theUniversity.

The HCM team was led byMaureen Okoro- Sokoh and LaraAdio and they gave apresentation detailing thecurrent HCM structure and theunique introduction of theShared Services concept. Theyalso gave practical insights intothe fundamental elements of

OOOOOando Marketing Limited(OML) in its bid toassess the state of its

infrastructure and the state ofpreparedness of some of itsongoing projects such as thePort Harcourt terminal upgrade,in May 2008, embarked on afield trip of its installations. Thisaction was considered importantas it provided an opportunity forHead Office team to get firsthand information about thechallenges faced by the regionalteam in the respective locations.

The visit also providedopportunity to achieve thefollowings;

• Reinforce the need for thevarious Human Capital

Management (HCM)initiatives i.e.Performance Objectives,360° Feedback,Performance Review, etc.

• Clarify any challenges inthe usage of thedocuments.

• Highlight various HumanResources (HR) benefitsopen to members of staff.

• Obtain feedback on allissues affecting quality ofperformance (as anindividual or group).

The visit took the touring teamto facilities in Kano, Kaduna,Abuja, Port Harcourt, Benin andApapa. Members of the teamwere drawn from various

business units such as HumanCapital Management,Environment Health SafetyQuality (EHSQ), Engineering,Corporate Communications,Finance, IT, Terminal andLogistics and Customers CareUnit (CCU) to assume an all-stakeholder composition.

The team inspected the facilitiesin the Kaduna Lubes Plant (KLP),the Kano Warehouse, (all in theNorthern region of the country),Benin Warehouse, PH Terminal(Southern region of the country)and Apapa Terminal in Lagos.

After the tour, a discussionsession was held with membersof staff in the region with theGroup Head Human Resources(GHHR), Akin Ayoola setting thetone for the one to onediscussion with a PowerPointpresentation on HR supports.This was followed by a questionand answer segment wherevarious questions about thebusiness were asked by theteam from Head Office withanswers provided by theappropriate business heads.

The very interactive fora createdan atmosphere for free

expression. This was intended toencourage safe discussions onany issue affecting individuals orthe business with the overallobjective of getting better qualityof service delivery frommembers.

The relevance of the field teamwas also highlighted in thecause of the meeting as they arethe major interphase betweenthe customer and the headoffice. This gesture was warmlywelcomed in all locations visited.

The sessions were wrapped upby Oando Marketing’s ChiefOperating Officer (COO), Mrs.Lara Banjoko who charged thefield team to recognize howimportant they are to thebusiness. “You are probably allthe customer knows aboutOando. We at the head office arethere to support you. However,there is nothing we can do if youdon’t let us know on timewhatever challenges you arefacing. I however promise youthat utmost priority will be givento all supporting needs broughtto our notice and I do hope youwill reciprocate by doing your jobwith greater passion”.

Oando Marketing TOando Marketing TOando Marketing TOando Marketing TOando Marketing Tours Facilitiesours Facilitiesours Facilitiesours Facilitiesours Facilities

HCM while providingclarifications to the students. Ageneral overview of the Oandoorganizational structure and theCorporate Social Responsibility

concept was provided byAbimbola Okoya, CorporateSocial Responsibility Manager.

Maureen Okoro-Sokoh, Manpower Resources Manager (left) and Lara Adio, HR Business Partner(2nd left) receiving 400 level students of Human Relations and Personnel Management, Lagos StateUniversity (LASU) during their visit to Oando in April, 2008.

Some of the Oando Management Staff members on the facilities tour

OandoNews 4

Marketing

OOOOOn Thursday, May 15,2008 at the Boardroomof the Head Office, in

Lagos, Oando Marketing (OML),Nigeria’s leading marketer ofpetroleum products, and asubsidiary of Oando PLC,formally introduced into theNigerian market, the all-newOando insecticide.

The move was OML’s strategicstep to diversify its product lineand further consolidate it’s Non-Fuel Revenue earnings.

The very attractively packagedproduct has been designed withthe following features:

• Kills all domestic insects(including mosquitoes,cockroaches, bugs, etc)

• Human andenvironment-fr iendlyproperties

• Non-irritant• Pleasant Lemon

fragrance

• Attractive packaging

Commenting on the newproduct, the Chief OperatingOfficer, Oando Marketing, LaraBanjoko, said, “In our usual wayof meeting and exceedingcustomer expectation, we haveformulated an effective productagainst all domestic insectsincluding mosquitoes and otherdisease carrying insects (flyingor crawling). This is our way ofsupporting Nigeria in achievingthe objective of MillenniumDevelopment Goal oferadicating killer diseases suchas malaria in Africa”.

The Oando insecticide isproduced for Oando Marketingby Quimicas Oro, a Spanishcompany that manufactureshigh quality domestic cleaningproducts, insecticides,fungicides and herbicides aswell as liquid detergent. Thecompany has a reputation for

producing effectiveenvironmental friendly productsand is ISO 9002 certified by theBureau Veritas Qualityinternational.

The insecticide has beencertified by the National Agencyfor Food and Drug

“Oando Insecticide” Debuts“Oando Insecticide” Debuts“Oando Insecticide” Debuts“Oando Insecticide” Debuts“Oando Insecticide” DebutsAdministration and Control(NAFDAC) as containing noharmful properties.

As part of the marketing push forthe product, a complimentarygift of a branded pen was givento all customers who bought theproduct from any of our servicestations as an introductory offer.

The early part of 2008 wasfor the Lubes Departmentof Oando Marketing, a very

busy one indeed. The teamengaged their Vendor InventoryManagement (VMI) customers inOando product trainingsnationwide.

The exercise was designed forthe direct users of OandoLubricants such as theEngineers and Techniciansworking in clients’ employment.Their procurement departmentswere also invited to gain deeperinsight into the products they buyfor their companies from Oando.The trainees were educated onOando lubricants’ composition,qualities and the machine typeand temperatures ranges thelubricants can be used on.

The objective of the training wasto ensure that users have clearunderstanding of the qualities,composition, application anduses of the lubricants that ismarketed to them.

The company which benefitedfrom the exercise includes:

• Guinness Nigeria PLCOgba, Ikeja, Lagos

• Lafarge Cement WAPCONigeria PLC, Sagamu inOgun State

• Borni Prono, Lagos• Chisco Motors• Emerite, Enugu• 7Up, Enugu and Kaduna• E k s i o g u l l a r i

Constructions, Kaduna• Gilmore, Abuja• Eternite Nigeria Limited,

Sapele, Delta State

Oando Marketing TOando Marketing TOando Marketing TOando Marketing TOando Marketing Trains Commerrains Commerrains Commerrains Commerrains CommercialcialcialcialcialLubes CustomersLubes CustomersLubes CustomersLubes CustomersLubes Customers

Cross section of participants during the training session held in PHCN, Sapele

Group photograph of participants at the Eternite complex, Sapele

(L-R) Lara Banjoko, Chief Operating Officer, Oshai Michael, Chief Marketing Officer, Oyet Gogomary,Head, EHSQ and Folami Abubakar, ED Finance at the launch of the product.

9 OandoNews5 OandoNews

Gas & Power

Industries on the Tincan Island,Lagos are now positioned toaccess natural gas as Gaslink

Nigeria Limited - a subsidiary ofOando Gas and Power (OG & P)announces the completion of gaspipeline expansion through theLiverpool River to the area.

The completion of the new pipelinesection as an addition to the existinginfrastructure has resulted in a gaspipeline coverage of all the majorindustrial areas of Lagos State, witha total pipeline network of 99.4km.The expansion has now made gasavailable to the following areas:

• Ojota, Maryland• Obanikoro• Iganmu, Alaka• Wharf, Apapa, and• Amuwo Odofin

Ikeja and its environs have beenconnected since 2001.

The expansion is expected to helpcut expenditure on power supplyby 50% for businesses in theindustrial area.

Oando Gas & Power TOando Gas & Power TOando Gas & Power TOando Gas & Power TOando Gas & Power Takes Gas to Tincan Islandakes Gas to Tincan Islandakes Gas to Tincan Islandakes Gas to Tincan Islandakes Gas to Tincan IslandMeanwhile, the integrity of thepipelines has been subjected to therigorous hydrostatic test as requiredby the industry safety standards.The successful conduct of the testhas therefore affirmed that the newpipelines were constructed inconformity to international standardsand has surpassed the highestsafety standards for inhabitants andproperties around the facilities.

Commenting on this event, Mr. BolajiOsunsanya states; “We have takensteps to make gas available toindustries on the Tincan Island. Andwe have tested the integrity of theinfrastructure for safety of all in theareas. This is a demonstration of ourcommitment to take leading role inbuilding the infrastructure for pipinggas to Nigerian industries”.

The gas pipeline network is used forthe transportation of natural gas, asafer and cleaner substitute forgasoline (petrol), diesel, or propanefuel to industrial users within the

state. The construction of theexpansion project whichcommenced in May 2007 willdeliver 1.809 million standard cubicfeet (mmscf/d) of natural gas perday to the Apapa industrial area. The completion of the new pipelinesection as an addition to the existinginfrastructure has resulted in a gaspipeline coverage of all the majorindustrial areas of Lagos State, witha total pipeline network of 99.4km.

OOOOOando Gas and Powerwas amongst thesponsors of the 4th

Lagos Economic Summit withthe theme “Transforming Lagosinto Africa’s Model Megacity”.

The forum was to present aforum for government to identifyand engage with prospectivesolution providers and investors

who can assist the governmentin its goals to make LagosAfrica’s model city.”

As part of the State’s frameworkfor development planning, theSummit is intended to provide aplatform for sharing knowledgeand experiences about solutionsto the challenges that confrontthe State. It will also be an

Oando Gas and Power Supports the LagosOando Gas and Power Supports the LagosOando Gas and Power Supports the LagosOando Gas and Power Supports the LagosOando Gas and Power Supports the LagosEconomic SummitEconomic SummitEconomic SummitEconomic SummitEconomic Summit

In the near future, Oando Gas andPower plans to extend its businessbeyond Lagos State, to other partsof Nigeria and indeed, West Africa.Preliminary work has alreadyreached various stages while furtherpositioning itself as the preferredLocal Distribution Company (LDC)for the West African Gas Pipeline(WAGP) that will transport natural gasfrom Nigeria to Ghana, Togo andBenin.

occasion to identify and formpartnerships with other cities,prospective solution providersand investors who cancontribute towards thesustainable developmentof Lagos as a Mega-City.

Oando Gas and Power was ablyrepresented by the Group Chief

Executive, Oando PLC whoenumerated the short term andlong term plans of Gaslink inproviding gas for industrialcustomers with the GreaterLagos Area as well as buildingIndependent Power Plants topower water projects in LagosState.

(L-R) Wale Tinubu, GCE, Oando PLC, Adeyemi Kuforiji, Speaker, Lagos House of Assembly andSarah Sosan, Deputy Governor, Lagos State

(L) Babatunde Raji Fashola, Executive Governor, Lagos State and Akintola Williams, Renowned Ac-countant (R) with other guests at the summit

Ungoing laying of the gas pipes in Apapa by OG & P contractor

OandoNews

Oando StafOando StafOando StafOando StafOando Staff ends 1f ends 1f ends 1f ends 1f ends 1ststststst Quarter with a Beach Party Quarter with a Beach Party Quarter with a Beach Party Quarter with a Beach Party Quarter with a Beach Party

Most Lagos Staff decidedto let their hairs downon the 12th of April,

2008 at the Hermitage BeachResort celebrating the end of aquarter with serious part gig. Itwas first time the staff wouldhave its quarterly TGIF at thebeach side.

Music was supplied by theindefatigable DJ Humility andthe Sharp Band.

While some staff decided to sitback and relax, others engagedexcitedly in the beach footballand volleyball games playing to

the cheers of supporters. It wasalso real fun all the way as Koffiand Wamlele treated all to ribcracking and mind blowingjokes.

Tictac of Ghana and Tony Tetuilaof the ‘You don hit my Car’ Fame

performed to the enjoyment ofall staff.

The hallmark of the day was theraffle draw games where all whoparticipated in the Raffle forCharity Game carted awayvarious gift items ranging from aLaptop to plasma TV Set.

Tony Tetuila (L) and Tic Tac from Ghana (R) Performing at the event Cross section of Oando staff members and guests at the party

OOOOOando PLC paid acourtesy visit to theHead Master of one of

the schools under the OandoAdopt-A-School programme,Metropolitan Primary School,Orile-Iganmu, Lagos. The teamwas lead by the Corporate SocialResponsibility Manager,

Abimbola Okoya, in an effort tomonitor the on-going renovationexercise and reinforce oursupport for promoting educationin Nigeria.

The event also facilitated theplanning exercise required forthe upcoming Prize Giving Day,

also to be supported by OandoPLC. The event aims atrewarding outstanding pupilsand teachers of the school, witha special Oando award to bepresented to the best leaving girland boy of the school. We alsointend to support the PrizeGiving Day of other schools

under the Oando Adopt-A-School Programme, as well asother school activities.

The team is currently planningthe roll-out of the second phaseof adoptions across the country,with a global view of adopting100 schools by 2012.

Courtesy VCourtesy VCourtesy VCourtesy VCourtesy Visit to Oando Adopted Schoolisit to Oando Adopted Schoolisit to Oando Adopted Schoolisit to Oando Adopted Schoolisit to Oando Adopted School

Abimbola Okoya, Corporate Social Responsibility Manager, Oando (L) and I. B Ojo, Head Master,Metropolitan Primary School, Sari-Iganmu, Lagos

(L-R) Abimbola Okoya, CSR Manager, Adebayo Lambo, NYSC member, Oando and I. B Ojo, HeadMaster, Metropolitan Primary School, Sari-Iganmu doing an inspection of the school facilities

OandoNews

PicturPicturPicturPicturPictures Fres Fres Fres Fres From the 31om the 31om the 31om the 31om the 31st st st st st Oando AGM which took placeOando AGM which took placeOando AGM which took placeOando AGM which took placeOando AGM which took placeon Ton Ton Ton Ton Tuesdayuesdayuesdayuesdayuesday, 27, 27, 27, 27, 27ththththth May May May May May, 2008, 2008, 2008, 2008, 2008

(L-R) Wale Tinubu, GCE, Major Gen. M. Magoro (Rtd), Chairman, Board of Directors and Oredeji Delano,Chief Compliance Officer and Company Secretary

HRM Michael A. Gbadebo CFR (L) and Alhaji Hamidu Mamud, (both directors)

Navaid Burney (L) and Chief Felix N. Atako JP, (both directors) (L-R) Chief Felix N. Atako JP, Valentine O. Ibru, Ademola Akinrele SAN, and Onajite P. Okoloko, (Direc-tors)

Some of Oando’s management staff and guests at the AGM Francid Orji, Port Harcourt Zone, Shareholders Association making a comment at the AGM

Cross section of shareholders at the event Group photograph of Oando ushers during the AGM

OandoNews 8

UpstrUpstrUpstrUpstrUpstreameameameameam

OEPL donates NYSC Quarters, Boat to the OPL 278OEPL donates NYSC Quarters, Boat to the OPL 278OEPL donates NYSC Quarters, Boat to the OPL 278OEPL donates NYSC Quarters, Boat to the OPL 278OEPL donates NYSC Quarters, Boat to the OPL 278Host CommunitiesHost CommunitiesHost CommunitiesHost CommunitiesHost Communities

As part of its pre-entryactivities to explore oiloppourtunities in OPL

278 host communities, OandoExploration and ProductionLimited has donated a twin blockof flats for Corp members postedto the Bille Kingdom one of thehost communities of the OPL278.

Group photograph of Oando staff members and community leaders in front of the NYSC lodge

Side view of the commissioned hualage boatEamon L. Akinosho, Chief Operating Officer, OEPL cutting the ribbon to officially launch thehualage boat

Front view of the newly built NYSC lodge

Oando Faces at the 2008 OfOando Faces at the 2008 OfOando Faces at the 2008 OfOando Faces at the 2008 OfOando Faces at the 2008 Offshorfshorfshorfshorfshore Te Te Te Te TechnologyechnologyechnologyechnologyechnologyConferConferConferConferConference in Houston Tence in Houston Tence in Houston Tence in Houston Tence in Houston Texasexasexasexasexas

This is part of the company’sdrive to improve the quality of liveof its host communities.

In the same vein, a haulagewooden boat was also donatedto the Abissa OPL 278 hostcommunity.

Members of these communitieswere elated at the kind gesture

of the company towards theircommunities.

You would recall that the PSCwhich covers oil block 278Product Sharing Contract NigerDelta onshore Nigeria wassigned between the Oandoconsortium and NNPC in 2006.The consortium is made up ofOando Production and

Development Company, CamacInternational Limited, AlliedEnergy Resources and First AxisOil & Gas Ltd. Oando leads theconsortium with 60% of theparticipating interest of the rightsand obligations under theagreement, Camac and AlliedEnergy both hold 15% while FirstAxis Oil & Gas holds10%interest.

(L-R) Emmanuel Olatunde Odusina, Minister of State for Energy, Kazeem Koleosho, ExplorationManager, OEPL, Lere Odusote, Business Development Manager, OG & P and Ejiro Dortie, BusinessDevelopment Manager, OEPL

(L-R) Uche Dimiri, CEO Oando Energy Services, Sola Falodun, Business Development Manager, OESand Eamon L. Akinosho, COO, OEPL

9 OandoNews

OOOOOando Exploration and Produc-tion (OEPL), in line with its com-mitment to fast track the devel-opment of its upstream assets,has signed a Global Memoran-dum of Understanding on UkanaSouth 1 OPL 236 with its hostcommunities, in Uyo, Akwa IbomState, in the South-South regionof Nigeria.

Earlier, on Wednesday 20th Feb-ruary, 2008 also in Uyo, AkwaIbom State, OEPL had signed aProduct Sharing Contract Agree-ment (PSC) with the NigerianNational Petroleum Corporation(NNPC) over the same field.

With the signing of the PSC andGMOU, Oando has displayed itsreadiness to commence activi-ties on the predominantly gasfield.

Speaking on the signing of theGMoU, Mr. Eamon LabodeAkinosho, Chief Operating Of-ficer, Oando Exploration andProduction said “The GlobalMemorandum of Understanding(GMoU) provides for choice ofsustainable community develop-ment projects that rest solely withthe community. This strategic

OEPL Signs PSC, GMoU on OPL 236OEPL Signs PSC, GMoU on OPL 236OEPL Signs PSC, GMoU on OPL 236OEPL Signs PSC, GMoU on OPL 236OEPL Signs PSC, GMoU on OPL 236agreement is a model arrange-ment to further enhance the trustand confidence of our host com-munities.”

The GMoU has been designedto encourage participatory part-nership with stakeholders for thepromotion of peace, security andsustainable development in thearea. It will also aid capacitybuilding from the various stake-holders in the host communities.

The gas field, which wasawarded by the Federal Govern-ment during the 2005 gas/oilfieldrounds is expected to add to thegas reserve base of Nigeria.Oando Exploration and Produc-tion Limited (OEPL) has a 95 percent operating interest in theUkana South gas field, whileR.F.O Ventures Ltd has a 5 percent interest as well.

“The acquisition of the OPL 236is a strategic addition to the al-ready existing assets portfolio tosustain our long term plan of in-dustrial and domestic gas dis-tribution. With the gas potentialsuspected in the block, it willenhance our gas delivery to in-dustrial customers within the

eastern part of Nigeria” Mr.Akinosho adds.

The OPL 236 field is 60km eastof Port Harcourt and it covers adistance of 1652 sq. km. It is lo-cated onshore in the South EastZone in Nigeria precisely AkwaIbom State. The acquisition ofthe OPL 236 is indicative ofOando’s strategic interest in thefield to support its industrial gasdistribution networks in the east-ern part of the country.

It would be recalled that EastHorizon Gas Company, a sub-sidiary of Oando Gas and Powerorganised an Environmental Im-

pact Assessment (EIA) OpenForum as part of its statutory re-quirements for the granting of anOil Pipeline License (OPL) for agas pipeline. The 18 inches di-ameter pipeline will run from theexisting NGC Valve Station inAkwa Ibom State and will termi-nate at the United Cement(UNICEM) factory which is pres-ently under construction inMfamosing, Cross Rivers State.

All representatives of the variousgroups in the host communitieswere present to witness the sign-ing ceremony which took placeat the Le Meridien Ibom Resort,Uyo, Akwa Ibom State.

Eamon L. Akinosho, COO, OEPL making a remark during the GMoU signing Evangelist Kufureabasi Umoh (L), transition Chairman of Ukana Fun LGA exchanging pleasantrieswith Samuel Onyenwe, Community Relations Manager, OEPL

Some of the community leaders present at the signing

OandoNews 10

Good Corporate Govenance and the Bottom LineGood Corporate Govenance and the Bottom LineGood Corporate Govenance and the Bottom LineGood Corporate Govenance and the Bottom LineGood Corporate Govenance and the Bottom Line

IIIIIn our last article, staff wereenlightened on why Oandohas imbibed compliance, the

advantages of goodgovernance, the myths oftenassociated with compliance, etc.

It cannot be over emphasizedthat corporate governance is thecorner stone to a sustainableorganization. It deals with theways in which Shareholdersassure themselves of gettingreturns on their investment.

It is a system by which businesscorporations are directed andcontrolled. It specifies thedistribution of rights andresponsibilities among differentemployees in the corporationsuch as the board, managers,shareholders and otherstakeholders and spells out therules and procedure for makingdecision.

In this article, we shall take a lookat how good corporategovernance affects thecompany’s profitability. Theemphasis of corporateorganizations around the worldis gradually shifting from singlebottom line approach (i.e. theorganization is solely profitbased. It’s only objective is tomake profit) to the triple lineapproach.

The triple bottom line is abusiness model that isconcerned with a company’ssocial responsibility,environmental obligations and itsfinancial or economic bottomline. In this article emphasis shallbe on the economic andfinancial aspect of the modelwhile the other two aspects i.e.

social and environmentalobligations will be dealt with inour subsequent publications.

The finance people frequentlyask – how will good corporategovernance affect thecompany’s ability to sustain orsurpass its profits? in otherwords, will compliance or non-compliance with laws,regulations and ethical practicesaffect the company’s figures atthe end of the year.

Non-compliance withgovernment regulations e.g. taxreturns, non-disclosure ofdirectors’ interests, sellingduring a closed period, all attractfines and penalties andultimately deplete profits, whichin turn, deplete returns toshareholders.

INVESTOR CONFIDENCEINVESTOR CONFIDENCEINVESTOR CONFIDENCEINVESTOR CONFIDENCEINVESTOR CONFIDENCE

We should always rememberthat the end goal of corporategovernance is to giveshareholders confidence on howtheir company is run. Majority ofinvestors view corporategovernance as part of their riskassessment of the company.

The appropriate management ofcompany funds and assets andhow financial statements arereported and verified are centralto good governance. If investorsdoubt the honesty andtransparency of a company’sfinancial reports, it can affect thecompany’s share value. It canalso attract negative reputationand may cause the company tolose business opportunities.

PROMOTER OF BUSINESSPROMOTER OF BUSINESSPROMOTER OF BUSINESSPROMOTER OF BUSINESSPROMOTER OF BUSINESSINTERESTINTERESTINTERESTINTERESTINTEREST

Corporate governance in recenttimes has been acknowledgedas a significant promoter ofbusiness interests. CorporateGovernance & Business Ethicswhich had once been edged intothe back seat by blatantcommercial interest are nowfinding their way back into theboard room.

Ultimately, it is worthwhile for anorganization to carry onbusiness operations accordingto the rules even if theircompetitors do not. The value ofthe company lies not only in thesuperior physical, logistical andhuman assets but in theconfidence that the businessstrategy is sound and system arein place to ensure that corporateassets are consistently deployedfor the benefit of the company’sstakeholders.

EMPLOYEE CONFIDENCEEMPLOYEE CONFIDENCEEMPLOYEE CONFIDENCEEMPLOYEE CONFIDENCEEMPLOYEE CONFIDENCE

It is a proven fact that employeemorale and confidence in anorganization rises when theyknow that proper systems are inoperation within the company.Employees tend to put in theextra effort and go the extra milein an environment where ethicalstandards are high and lipservice is not just paid tocorporate governance but isactually practiced. This bringsabout high productivity andgenerates more income for thecompany.

RISK EXPOSURERISK EXPOSURERISK EXPOSURERISK EXPOSURERISK EXPOSURE

Corporate governancepromotes corporate fairness,transparency and accountability,it however bring about less risk

within the organization becausethere will be fewer defaults (if anyat all), fewer financial crises. Itwill also help in reducing theincidence of fraud within theorganization.

INCREASED ACCESS TOINCREASED ACCESS TOINCREASED ACCESS TOINCREASED ACCESS TOINCREASED ACCESS TOFINANCINGFINANCINGFINANCINGFINANCINGFINANCING

Investors are increasinglycautious when making decisionsto invest. Financial institutionsand institutional investors nowcarry out due diligence onprospective companies; theywant to know how the companyoperates, its ethical stance, andcompliance with regulations, aswell as who their directors are,what their governance stance is.A company that practices goodcorporate governance invariablyreduces its cost of capital whensourcing for finance from banks,and other financial institutions.

PREVENTING CORPORAPREVENTING CORPORAPREVENTING CORPORAPREVENTING CORPORAPREVENTING CORPORATETETETETEFFFFFAILURESAILURESAILURESAILURESAILURES

Corporate governance is aboutfinding ways to ensure thatdecisions are made effective. Inthis regard the role of non-executive directors andsignificant shareholders isimportant. Better access tocompany information andregular communication with thecompany, in order for them tobetter understand the companyperformance, objectives andstrategy is crucial. This will aidtheir contributions and enablethem challenge the decisionmaking process and thusprevent corporate failures.

Toyin AraromiCompliance Manager

11 OandoNews

Social Diary

Chief Felix N. Atako JP, Director, Oando (M) with other title holders during his coronationHRM, Eze S. N. Woluchem JP, Eze Epera Rebisi (L) presenting Chief Felix N. Atako JP, Director, Oando,with the staff of office as Eze Okpebi Rebisi III

CorCorCorCorCoronation of Chief Felix N. Atako JP asonation of Chief Felix N. Atako JP asonation of Chief Felix N. Atako JP asonation of Chief Felix N. Atako JP asonation of Chief Felix N. Atako JP asEze Okpebi Rebisi III in Port HarEze Okpebi Rebisi III in Port HarEze Okpebi Rebisi III in Port HarEze Okpebi Rebisi III in Port HarEze Okpebi Rebisi III in Port Harcourtcourtcourtcourtcourt

Folasewa, Femi Adeyeye’s(Corporate Communications) daughter carrying her newly born baby brotherOluwanifemi

StafStafStafStafStaff Babiesf Babiesf Babiesf Babiesf Babies

Ethan Jekhine, Misan Jekhine’s (Shared Services) new baby boy was dedicated on 6th April, 2008