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Oando Signs Construction Contract with Oilserv to Boost Gas Distribution Network in Lagos

January 13, 2014 (Lagos, Nigeria): Gaslink Nigeria Limited, a subsidiary of Oando PLC, Nigeria’s leading indigenous energy group, has signed a contract with Oilserve Limited to extend Oando’s existing 100km natural gas distribution network from Ijora to the Marina Central Business District in Lagos state. The Greater Lagos project extension contract signing enables Gaslink to engage the expertise and experience of Oilserv to proficiently increase Oando’s gas distribution capacity.

Commenting on the signing of the construction contract, Mr. Bolaji Osunsanya, CEO Oando Gas and Power (OGP), said: “We are extremely pleased with the strides we have made thus far, and our overall strategy remains focused on the aggressive expansion and growth of our asset portfolio. The extension of the Greater Lagos network further underlines our push to strengthen our market play within the vibrant gas sector.”

A recent enumeration exercise conducted by OGP in the Lagos Island area revealed considerable demand, particularly for power generation, and key off-takers along the proposed pipeline route have expressed their interest and have begun to sign Gas Sale and Purchase Agreements (GSPAs) with Gaslink. The extension project will have a substantial socio-economic impact on the Central Business District, as the availability of natural gas in the area will attract industrial investors and businesses thereby enhancing commerce and industry in Lagos state. Natural gas is a cheaper alternative to diesel and low pour fuel oil (LPFO) which has been in use by industries and commercial consumers to augment the epileptic power supply from the national grid. The project is also expected to have a positive environmental impact as natural gas, which is more environmentally friendly, will displace diesel and LPFO as the primary fuel source in industries and power generation plants in areas the infrastructure covers. The pipeline extension is approximately 8km in length, 12 inches in diameter, and is expected to take approximately 18 months to complete.

About Gaslink Nigeria Limited

Gaslink Nigeria Limited is a subsidiary of Oando PLC which promotes the distribution and utilization of natural gas in the greater Lagos area. Gaslink is one of a few companies in Nigeria involved in the piping and distribution of natural gas to industrial, residential and commercial consumers and currently operates a 20 year Gas Sale and Purchase Agreement (GSPA) with the Nigerian Gas Company.

About Oando Gas and Power

Oando Gas and Power is a fully-owned subsidiary of Oando PLC, and is responsible for the development, operation, and management of Oando PLC’s participation in the gas and power sector. It currently delivers gas and power solutions to over 150 industrial customers through several companies: Gaslink Nigeria Limited, Central Horizon Gas Company, Gas Network Services, Akute Power Limited, and Alausa Power Limited.

For more information, please contact:

Ainojie ‘Alex’ Irune
Head, Corporate Communications

Oando PLC
2 Ajose Adeogun Street,
Victoria Island,
Lagos, Nigeria.
Email: airune@oandoplc.com
Tel: +234 (1) 2702400 Ext 6376
DL: 01-2805593

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