BY MICHAEL EBOH

Japaul Oil & Maritime Services Plc has announced plans to float a new subsidiary, African Energy Limited, to handle its diversification into petroleum marketing, oil and gas lifting and other activities in the oil and gas sector.

Speaking at its Annual General Meeting (AGM), Chairman, Japaul, Chief Alfred Diete-Spiff told shareholders that the subsidiary, which will further its diversification plans, will see the company commence business in the marketing of petroleum products along the coasts of West Africa.

This, according to him, will contribute in its drive towards increased earnings and improved returns to the company and its shareholders in the years ahead.

“Our core competency,” he said, “is in the maritime industry and a backward integration strategy will be implemented. We shall be buying the petroleum products by ourselves and be supplying rigs and other buyers instead of waiting for our vessels to be chartered for same purposes of carrying the products.”

Diete-Spiff said that the company is targeting a revenue base of N3 billion per annum, through the acquisition of seven sea going vessels, including oil tankers and one big dredger.

He expressed confidence that the company would get many contracts in the upstream oil and gas this year and beyond.

“We shall also perfect plans of lifting crude oil and gas for Nigeria government with our tankers that we shall be acquiring soon. This part of our business is made easy for a structure company like us by the Cabotage and local content laws that have created an enabling business environment,” he said.

Diete-Spiff, in his review of the performance of the company for the year ended December 31, 2010, said that turnover stood at N7.1 billion, up from N4.7 billion in 2009, while its operating profit rose from N793 million to N1.07 billion in 2010.

He assured shareholders and other stakeholders that the company has a great future ahead.

“Without an iota of doubt, we have a very glorious future ahead of us despite all the immediate challenges. With sacrifices and determination, we shall surely make it big to the amazement of our world,” he noted.