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Nigeria: Oando Posts Positive First Half Results

The first half of 2017 has witnessed the country’s production levels steadily recovering to normal.

This has largely been as a result of the containment of the Niger Delta unrest, and the more recent resumption of activity on the Trans Forcados Pipeline. There is optimism around the approval of the Petroleum Industry Governance and Institutional Framework Bill (PIGB), which should result in a more efficiently regulated sector and a conducive business environment for industry players.

Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “With security concerns in the Niger Delta receding, Nigeria’s economic recovery has been buoyed by a boost in oil output, while the legislative approval of certain segments of the Petroleum Industry Bill (PIB) provides greater long-term policy certainty for the sector. Our returns underline our continued successful foray into the Upstream. Within the prevalent crude pricing regime, we remain committed to optimizing our overall production base, seeking unique profit-driven opportunities to further partner with IOCs, while firming up our balance sheet to provide greater shareholder value.”

Operational Highlights:

Upstream:

  • Production in the first half of 2017 decreased by 20% to 7.2 MMboe (average 39,950 boe/day) compared to 8.2 MMboe (average 44,892 boe/day) in the first half of 2016
  • Realized N3.2 billion from the optimization of the crude oil hedge program which will be used to reduce corporate facility debt obligations.

Downstream

  • 72% improvement in revenues, from N6 billion in H1 2016 to N217.4 billion in H1 2017
  • Exported over 7Mb of Crude Oil, and imported 600,000 MT of refined petroleum products in the first half of 2017. Representing a 20% and 96% increase respectively. PWKD21082017
Last modified onSunday, 20 August 2017 08:57
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