ByÂ Franklin Alli
Oando PLC hasÂ announced expansion of its investments from oil and gas into industrial sector. The company citedÂ its Kaduna Lubes Plant for the manufacturing of Oleum range of lubricants, and its Greenfield products reception terminal at the Lekki Free Trade Zone, Lagos as examples of its expansion drive.
â€œApart from oil explorationÂ and production, importation and marketing of petroleum products, construction and distribution of natural gas to industrial and commercial users, including servicing of oil field equipment, the company is also playing key role in industrialising the nation,â€ said Head, Corporate Communications, Meka Olowola.
He stated that the reasons for diversifying the companyâ€™s operations was to touch lives in every sector and community it operates and to deliver robust returns to shareholders and other stakeholders.
According to him, the company is not just about oil and gas, it has participating interest in United Cement Company of Nigeria, UNICEM, Calabar, and other businesses in related sector.
He further disclosed that the capacity of the lube base oil manufacturing factory will soon be increased from 220 million litres / year to 27 million litres per year.
â€œOleumâ€™s product quality and integrity has helped in checking the menace of adulteration and tampering.
All the products are packaged in unique tamper-proof casings in our ultra modem plant, which allows more batches to be rolled out to meet customer needs,â€ he stated.
The brandâ€™s competitive pricing has also attracted more customers to its fold. In addition, it comes
complete with technical support services for customers in the form of training, seminars and after
sales services for both companies and individuals
On the green field projects at Lekki Free Trade Zone, he said that the Refinery and Terminals are the newest business units of the Oando Group managing the development of an ultramodern 240,000 barrels per day (bpd) Greenfield petroleum refinery and a 210,000 MT capacity product reception terminal.
He said the companyâ€™s entry into Refinery and Terminals sectors complete its footprints in all segments of the energy value chain to become Nigeriaâ€™s leading integrated energy solutions providers.
â€œThe refinery promises to be one of the most competitive in the world as it is physically close to Nigeriaâ€™s high quality crude, a huge local and regional market and is sophisticated enough to produce premium refined products,â€ he stated.
With a â€˜bankableâ€™ feasibility study conducted by Wood Mackenzie and Foster Wheeler, Oando Refinery and Terminal has demonstrated its commitment to meticulous project execution.
Oando, with its usual execution excellence and strict operational controls that has resulted in several successful projects in the past, is taking deliberate steps to ensure the refinery project is likewise implemented flawlessly. This is evident in the comprehensive detail of this feasibility study coupled with the choice of world-class vendors.
The 210,000 MT capacity terminals is conceptualised to be best-in-class and the largest product terminal in the sub-region dispatching over 500 trucks per day in what is set to revolutionise petroleum products distribution in Nigeria. It will be located in the same location as the Oando Refinery and will be a precursor to the development of the facility.
The terminal will have a Single Point Mooring, SPM facility located about 7km offshore, which will support the berthing of 80,000 deadweight tonnage (dwt) vessels for the first time in West Africa.
Pursuant to this, Oando has commissioned the Front End Engineering Design, FEED of the terminal scheduled to be completed by the third quarter of 2009, whilst the entire project is expected to be completed in the first quarter of 2012.