WHAT WE DO

Gas and Power

Oando’s Gas distribution & Power business is directed by Oando Gas & Power Limited.

Gas

Gaslink Nigeria Limited is one of four companies exclusively involved in piping and distribution of Natural Gas direct to consumers in Nigeria. We operate Oando‘s 20 year Natural Gas Sales & Purchase Agreement (NGSPA) with the Nigeria Gas Company (NGC) Limited, a subsidiary of Nigerian National Petroleum Corporation (NNPC). The NGSPA grants Gaslink the exclusive right to market Natural Gas in the “Greater Lagos Area”. In carrying out this contractual mandate, we design, build and operate gas distribution network in the allocated franchise area.

Our Plans For 2008

The company’s overall objective for 2008 is to enhance stakeholders’ value. Underpinning this will be the following:

• Accelerating construction of phase 3 by mobilizing multiple spreads and progressive releases of volumes

• Adding at least 35 additional customers, including high volume gas users, in 2008

• Continuing to seek new gas sources and signing an off take agreement with at least one

• Intensifying the drive to establish a presence in the West Africa sub region and to win at least one Local Distribution Zones in either Benin Togo or Ghana

• Developing the CNG pilot project in 2008

• Increasing our investment in training and development, embarking on ISO certification and participating in the group’s deployment of ERP implementation

• Acquiring at least one additional franchise area in 2008 Power

Oando’s Power business is being incubated within Oando Gas & Power to take advantage of upcoming deregulation and privatization of the Power sector in Nigeria.

Oando Power has identified the industrial sector as one in need of an immediate power supply solution. A number of companies in this sector presently self-generate mostly utilising diesel or LPFO. In conjunction with Gaslink, Oando Power has proposed to provide a gas-fired solution to a number these companies.

In this regard, Oando Power participated in the tender for the provision of a 12MW of captive power solution to the Lagos State Water Corporation and emerged with the best technical bid. In addition to this, the company opened up discussions with several other industrial companies in close proximity gas fuel sources with a view to providing captive power solutions.

In preparing for the eventual acquisition of the distribution and generation companies of the PHCN, the company has formed definitive relationships with renowned players (technical and financial) with an appetite for investing and operating in Africa. We have also embarked on a capacity building process in order to prepare a robust platform for the impending tender exercise.

Our Plans For 2008

With the recent appointment of a transaction adviser for the disposal of the PHCN successor companies, the stage is set for the BPE to commence the privatisation exercise. Oando Power has positioned itself to be the preferred bidder for some of the distribution and generation assets slated for privatisation in 2008.

Oando Power remains committed to its vision ‘to be the preferred energy supplier in the Nigerian ESI’.