Don't Miss

Conoco Phillips acquisition to be funded by debt and equity – Oando

By on December 27, 2012

Oando Plc CEO Tinubu speaks

Nigeria’s leading indigenous oil and gas firm, Oando plc says it is set to fund its major acquisition deal of American energy firm Conoco Phillips through the sale of its debt and equity(shares).

The deal which is valued at about $1.7 billion is poised to reposition the company as a leading player in the energy market.

It will also boost the capacity and potentials of the firm, as it continues aggressively with its expansion plan and programme in the country in terms of Oil and Gas production.

Currently producing from its Abo and Ebeno Oil fields up to 4,800 barrels a day, the new acquisition will give it a new experience that it desires to make reasonable progress.

The Conono Phillips assets’ purchase will give Oando plc about 43,000 barrels a day capacity production from the onshore fields alongside a strategic 17 percent equity stake in the proposed Brass liquefied natural gas project.

By this deal the American company has achieved its plan of selling assets to garner funds for its prospective high level venture businesses in the energy sector,just like Total, the French oil giants sold off some of its assets to the Chinese firm Sinopec.

The Nigerian firm is optimistic that everything concerning the deal will be finalised and concluded by the first half of next yea,r giving it a phenomenal commercial value in the local and international energy market.

Oando Plc remains a testimony of the potentials and capabilities of indigenous oil production in the country, which is a feature in the proposed Petroleum Industry bill that is on the verge of being passed into law by the National Assembly.

One Comment

  1. Seun A

    December 27, 2012 at 11:49 am

    With Oando’s testimony Nigeian Businessmen should see themselves as contenders in the economic sphere most especially in our own country.