Oando Plc - Oando Plc Announces Sale Of East Horizon Gas Company To Seven Energy International LimitedRelease Date: 27/12/2013 07:05:00 Code(s): OAO
(Incorporated in Nigeria and registered as an external company in South Africa)
External Registration number: RC 6474
Company registration number: 2005/038824/10
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
(?Oando? or the ?Company?)
Oando PLC Announces Sale of East Horizon Gas Company to Seven Energy International Limited
Oando , Nigeria?s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange,
announces the execution of a Share Purchase Agreement (?SPA?) with Seven Energy International Limited
(?Seven Energy?) for the sale of the entire issued share capital of one of its wholly owned subsidiaries,
East Horizon Gas Company Limited (?EHGC?) for a total gross consideration of US$250 Million adjusted
for net liabilities.
EHGC is a special purpose vehicle operating a 128km, 120mmscf, 18-inch natural gas transmission and
distribution pipeline (?the Pipeline?) traversing the Akwa Ibom and Cross River States. EHGC also has a
gas sales agreement to supply up to 25 MMcfpd, increasing to 50 MMcfpd in 2016, under a 20 year
?take-or-pay? agreement expiring in 2032.
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: ?This transaction aligns with
our Corporate Strategy, as we leverage on the proceeds of the sale to boost overall Group liquidity in
furtherance of our main growth initiatives in the Upstream. We are particularly delighted that a worthy
advocate and champion of the Gas revolution is purchasing the company as they will be able to utilize
the abundant gas resources they have to generate synergies and economies of scale through this
extensive channel for all stakeholders.
We remain steadfast in our commitment to growing the midstream business, evidenced by our
ongoing expansion efforts on our various assets: the construction of the 4th phase of our Greater Lagos
pipeline to increase our capacity and customer base in Lagos, the refurbishment of our newly acquired
Port Harcourt pipeline franchise; growth in our Compressed Natural Gas distribution programme,
which we commissioned this year; increase in our power generation to 23.55MW, with the addition of
our 2nd power plant the 10.4MW Alausa IPP. We also have projects which are at conceptualization
stages expected to create value for us in the longer term; the 400km SW-NW EIIJ pipeline and the
Central Processing Facility that will serve as a gas gathering and processing hub in the Niger Delta.
We continue to prioritize our aspirations to develop infrastructure in the midstream space with
optimal energy solutions that will unlock and harness the available vast resource potential in our
country, thereby reducing the perennial power challenges currently plaguing our nation?.
27 December 2013
Macquarie First South Capital Proprietary Limited
Tokunboh Akindele Ayo Ajose-Adeogun
Head, Investor Relations Chief, Strategy Officer
Tel: +234 (1) 2601290-9, Ext 6396 Tel: +234 (1) 2601290-9, Ext 6296
Date: 27/12/2013 07:05:00 Supplied by www.sharenet.co.za
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