Oando Plc has said that it has secured federal government’s approval to build a 500Mega Watts, Mw, power plant in Kwale, Delta State that will cater for additional 20 per cent of the nation’s power needs.

This, according to the company, is in addition to an existing stand-by 500MW power plant in Kwale that supplies power to the nation in case of any national shut down.

The company also said that it plans to diversify its market and increase its presence in the Southern and East African regions, adding that it would undertake capital increase during the year.

Addressing stockbrokers at the company’s Facts Behind Figures, FBF, presentation at the Nigerian Stock Exchange, NSE, the Group Chief Executive Officer, Oando Plc, Mr. Wale Tinubu, noted the company also has approval to develop a direct 22 KV line to Enugu, and assured that the projects would be delivered by Q1, 2019.

“The logic is that there will be additional 20 per cent power for the country. It is one of the most significant power plants in Nigeria. We have enough plants to satisfy the country, but we lack transmission and gas infrastructure. By June 30, this year, we will make formal announcement to commence development of the plant. It is a brown field and it’s located side by side our plant in Kwale,” he said.

Tinubu revealed that Onado has equally received the go ahead from the government to repair, operate and maintain the Port-Harcourt refinery together with its partner – Agip. He said Oando is working the final details and the contract would be signed by July this year. You will see substantial investment coming from us to take the refinery from its current 30 per cent capacity utilization to 100 per cent capacity utilization at the first instance and then to 120 per cent capacity utilization, Tinubu said.

“With the gradual decline in pipeline disruptions, increased efforts by the government to curb security issues in the Niger Delta, and an upturn in oil prices north of $50, the sector is optimistic of a near term recovery .The plan is to go from 60,000boedp by the last quarter 2017 to 80,000 in 2018 and hopefully 100,000 barrel a day mark by 2020,” he added.

He observed that the deleveraged its balance sheet through the divestment of its upstream services company Oando Energy Services and embarked on the expansion of its retail and gas footprint through a strategic partnership with Helios Investment Partners and Vitol Group to recapitalize its downstream business for US$210 million and the US$115.8 equity buy-in of its Gas and Power business by Helios Investment Partners.

 

Source: Vanguardngr.com

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