Oando lifts 730,000 barrels Crude Oil from the Abo Fields

This is coming on the back of its crude off take at the Abo fields, the aggregate of which amounts to 730,000 net US barrels, generating revenue of approximately USD $49 million to Oando at the current oil pricing. With the current instability of the Naira, earning directly in dollars provides a hedge against potentially declining revenues resulting from the  devaluation of Naira.

Wale Tinubu, Group Chief Executive, Oando PLC said “This milestone clearly underscores our truly integrated energy solutions status. Our shareholders will no doubt be excited by our ability to extract value at every point along the energy value chain -this diversified earnings platform guarantees sustainable growth, profitability and viability irrespective market volatility.

“With this development, we have also demonstrated our company’s ability to partner international oil operators in transforming technical ideas and huge capital investments into profitable ventures while managing the risks involved. We will continue to explore such opportunities to build a robust portfolio of oil and gas properties that would boost our target of 100,000 bpd by 2013”.

Mr. Babatunde Ogunnaike, Chief Executive Officer, Oando Exploration and Production Limited (OEPL), also commenting said “We are glad to be able to make good our commitment to shareholders last year that OEPL will begin cash flow and profitability contributions to the Group’s bottom line directly from our assets. This welcome development will act as fillip for us to fast track other assets to further boost shareholder value.”

OML 125 currently produces approximately 32,000 barrels per day (BPD) of oil from the Abo field. The Crude is to be sold to Shell Western Trading & Supply in London under an exclusive Sales and Purchase Agreement.