Oando Plc announces sale of East Horizon Gas Company Ltd
Oando PLC, Nigeria’s leading indigenous energy group, has announced over the festive season that it is selling its wholly owned subsidiary, East Horizon Gas Company Limited (EHGC) to Seven Energy International Limited in a US$25 million deal.
The group, which is listed on both the Nigerian and Johannesburg Stock Exchange, has revealed the execution of a Share Purchase Agreement with Seven Energy for a total gross consideration of US$25 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 AkwaIbom and Cross River States.
EHGC also has a gas sales agreement to supplyup to 25MMcfpd, increasing to 50MMcfpd in 2016, under a 20 year “take-or-pay” agreement expiring in 2032.
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 utilise 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 fourth 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 second power plant the 10.4MWAlausa IPP.
“We also have projects which are at conceptualisation 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 prioritise 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.”
5 minutes with... Janthana Kaenprakhamroy, CEO, Tapoly
Founder and CEO of award-winning insurtech firm Tapoly, Janthana Kaenprakhamroy heads up Europe’s first on-demand insurance platform for the gig economy, winning industry awards, innovating in the digital insurance space, and leading with inclusivity.
Here, Business Chief talks to Janthana about her leadership style and skills.
What do you do, in a nutshell?
I’m founder and CEO of Tapoly, a digital MGA providing a full stack of commercial lines insurance specifically for SMEs and freelancers, as well as a SaaS solution to connect insurers with their distribution partners. We build bespoke, end-to-end platforms encompassing the whole customer journey, but can also integrate our APIs within existing systems. We were proud to win Insurance Provider of the Year at the British Small Business Awards 2018 and receive silver in the Insurtech category at the Efma & Accenture Innovation in Insurance Awards 2019.
How would you describe your leadership style?
I try to be as inclusive a leader as possible. I’m committed to creating space for everyone to shine. Many of the roles at Tapoly are performed by women and I speak at industry events to encourage more people to get involved in insurance/insurtech. Similarly, I always try to maintain a growth mindset. I think it’s important to retain values to support learning and development, like reliability, working hard and punctuality.
What’s the best leadership advice you’ve received?
Build your network and seek advice. As a leader, you need smart people around you to help you grow your business. It’s not about personally being the best, but being able to find resources and get help where needed.
How do you see leadership changing in a COVID world?
I think the pandemic has proven the importance of inclusive leadership so that everyone feels supported and valued. It’s also shown the importance of being flexible as a leader. We’ve had to remain adaptable to continue delivering high levels of customer service. This flexibility has also been important when supporting employees as everyone has had individual pressures to deal with during this time. Leaders should continue to embed this flexibility within their organisations moving forward.
They say ‘from every crisis comes opportunity’, what opportunities do you see?
The past year has been challenging, but it has also proven the importance of digital transformation in insurance. When working from home was required, it was much harder for insurers to adjust who had not embedded technology within their operating processes because they did not have data stored in the cloud and it caused communication delays with concerned customers at a time when this communication should have been a priority, which ultimately impacts the level of customer satisfaction. This demonstrates the importance of what we are trying to achieve at Tapoly in driving digitalisation in insurance and making communication between insurers and distribution partners seamless.
What advice would you give to your younger self just starting out in the industry?
Start sooner, don’t be afraid to take (calculated) risks and make sure you raise enough money to get you through the initial seed stage.