Mr. Jubril Adewale Tinubu
As the largest integrated energy solutions group in sub-Saharan Africa it is our responsibility to develop a business model that protects our future and sustains our economic, social and environmental viability. We need to continue to deliver returns to our investors, provide employment opportunities and partner with stakeholders and others that share our vision in mutually beneficial relationships. These factors are critical to our business. At Oando, sustainability is not incidental to the way we do business, it is fundamental to it.
Our approach to sustainability includes adherence to the principles and policies of national and international initiatives that promote ethical conduct and integrity. This is rooted in our vision and mission statements. I take this opportunity to reiterate our commitment to the ten principles of the United Nations Global Compact (UNGC) and the values of the Convention on Business Integrity (CBi).
Our long term perspective
The Company has grown significantly over the last ten years since the 2003 merger of Unipetrol Nigeria Plc and Agip Nigeria Plc to form Oando. We considered it appropriate to conduct a major review of our businesses and strategic direction in 2013. Our long term perspective is transformational. Our ambitions involve the autonomous and self-sustaining ability of our six primary divisions. Discussions with respective Chief Executive Officers (CEOs) for each operating entity and senior management within the Group were held to agree on the future direction of the Company.
We have already taken steps to divest assets that do not support this strategy and acquire assets that will help fund our growth and align with our corporate objectives. There are a number of challenges and risks to our strategies including reduced earnings, political impact and technological limitations. We are subject to volatile oil prices, exchange rate fluctuations, high operating costs and underdeveloped infrastructure.
Our strategies
The CEOs of each operating entity have agreed their respective long term strategies following a major review in 2013. Our upstream operations, Oando Energy Resources (OER) who operate our exploration and production (E&P) business, and Oando Energy Services (OES) who operate the largest swamp drilling rig fleet in the Niger Delta, have focused their strategies on their people, their partnerships and new technology.
OER's business strategy is to deliver organic and inorganic growth in production and reserves using safe, ethical and sustainable methods, utilising OER valued assets including employees and partnerships, while minimising the environmental impact of operations.
OES is positioned to be the preferred upstream oilfield services provider in Africa, delivering quality, safe and efficient services by leveraging on the competency of our people, strategic partnerships and technology.
Oando Gas and Power is the largest private sector gas distributor and developer of captive power solutions in Nigeria and handle our midstream operations. OGP aims to fund sustainable business growth in a manner that maintains value, minimizes costs and risks, creates successful stakeholder relationships and provides exciting growth and development opportunities for employees.
Our downstream operations consist of our terminals and logistics business and the retailing of our refined petroleum products. Oando Marketing PLC (OMP) manages this aspect of our business with a distribution network of over 470 retail service stations. The OMP strategy is to become a retail company that delivers a good return on investment in the smartest possible way, using sustainable means and technology and relying on the best people.
SMART objectives have been developed by senior management to push forward these strategies. We have already begun to make progress and we have identified areas of investment that will allow us to adapt, improve and ultimately achieve our ambition to become the trusted investment, employer and partner of choice. We remain committed to our social responsibilities with our continued support of the Oando Foundation with funding and donations in kind from our corporate businesses.