Post Views: 1,105 The management of Oando Plc, as part of its post-listing requirement, on Thursday informed investors through the Nigerian Stock Exch...
The management of Oando Plc, as part of its post-listing requirement, on Thursday informed investors through the Nigerian Stock Exchange (NSE) of the award of a $727m contract to it by the Nigerian National Petroleum Corporation (NNPC), whose impact could significantly affect its top and bottom-lines.
The contract involves an Engineering, Procurement and Construction (EPC) mandate to Develop the 215km Ajaokuta-Kaduna-Kano gas infrastructure.
The contract, which is for the Ajaokuta – Abuja portion (Lot 1), according to a statement by Ayotola Jagun, Chief Compliance Officer & Company Secretary of Oando Plc is to be undertaken by its midstream affiliate, Axxela Limited (formerly Oando Gas & Power) and Oilserv Limited.
The contract award, the statement noted, follows an extensive due diligence process conducted by the NNPC following a submission by Oando and Oilserv in 2013 in response to an Expression of Interest for a contractor-financed EPC development of the AKK Pipeline Project.
Commenting on the deal, Oando’s Chief Executive and Axxela chairman, Jubril Adewale Tinubu, assured that the group’s “longstanding achievements and aspirations in the gas and power sector are testament to our desire to continuously provide innovative and integrated energy solutions across sub-Saharan Africa.
“The award of the Ajaokuta – Abuja portion of the AKK Gas Pipeline Project also underscores our position as the partner of choice for investors, regulators, and key stakeholders as gas continues to gain prominence as a key driver for the region’s economic empowerment,” he added.
The gas infrastructure project comes with associated facilities such as Metering/Terminal Gas Station, Pigging Station, Block Valve Stations, among others.
The development of the AKK grid, it is believed, is a manifestation of the Gas Infrastructure Blueprint in the Nigerian Gas Master Plan, which seeks to extend the existing gas transmission network and achieve connectivity between the East (gas reserves) and the North (demand centres); serve new customers in the Northern regions; and bridge the shortfall in the Western region.
Also commenting on the contract award, Axxela CEO, Bolaji Osunsanya, expressed commitment to the long term realisation of the Gas Master Plan as forerunners in the
“The development of critical gas pipeline infrastructure and a far-reaching national grid remains pivotal to the country’s industrialization and economic empowerment. Consequently, the implementation of the AKK Pipeline Project will enable power-starved communities across the northern region have greater access to electricity, while providing stranded commercial and industrial customers with a cleaner and more efficient source of energy,” he added.
Poised to aggressively expand its operational footprint and further create value-adding opportunities in the gas and power space, Oando divested a portion of its erstwhile midstream vehicle, Oando Gas & Power to Helios Investment Partners LLP, a premier Africa focused private investment firm. Oando Gas & Power subsequently rebranded as Axxela.
Awards for the three lots on the AKK Pipeline Project, the NNPC said, were made to three selected consortia to facilitate a timely delivery of the gas network.