Oando Plc, one of the sub-Saharan Africa’s leading indigenous energy companies, could be likened to an idea whose time has come.

In reminiscence, its paths in the nation’s oil and gas industry, beginning in 1994 with the establishment of Ocean and Oil Services Limited, had been laced with more roses than thorns.

At the outset, the visionaries, Jubril  Adewale Tinubu, Omamofe Boyo and Onajite Okoloko, who could be regarded as kindred spirits, had a burning ambition and were not dispirited by any perceived boulder in their way.

Though many industry watchers didn’t anticipate their coming, it wasn’t a case of a bridge too far or a river so deep and wide to cross for these business wizards.

Ocean and Oil Services Limited had established been to supply diesel and Low Pour Fuel Oil (LPFO) to various shipping firms and offshore exploration companies in Nigeria.

No doubts, it was a humble beginning, as the budding oil company started out only with a vessel, MT Carolina, anchored in Bonny Island, Rivers State to supply diesel and Low Pour Fuel Oil (LPFO) to off-shore companies from the Port-Harcourt, Rivers State refinery.

Interestingly, just six years after its emergence on the nation’s thriving oil market, Ocean and Oil Services Limited had begun to show flashes of a potentially big player, particularly with the acquisition of six ships, a development that shocked its morbid critics who didn’t give it any chance of survival.

In 2000, Tinubu and his co-travellers on this ambitious journey jolted industry watchers when they expressed interest in acquiring a 30 % controlling interest in the defunct Unipetrol.

The move was a swift response to the government’s decision to sell its controlling 60% stake in Unipetrol Plc, an integrated downstream oil marketing company.

In hindsight, the show of interest by the partners had come with some mild drama from the least expected quarter. Those in the know at the time claimed that a former Managing Director of the defunct Unipetrol had laughed it off a huge joke. His reasons, it was alleged, was that it was inconceivable that Ocean and Oil Services Limited, an upstart company, would acquire an already top-quoted company on the Lagos Stock Exchange.

But before the eyes of the renowned seasoned technocrat and other nitpickers, the planned acquisition recorded no hitch. And by 2001, Ocean and Oil Services had increased its shares in Unipetrol to 42%.

The company was able to wrought this magic with an impressive support from its foreign technical partners, Compagnia Espanola De Petroleos (CEPSA), the second largest oil group in Spain.

Again, in 2002, these enterprising and go-getting businessmen fortuitously became the object of global interest, when Ocean and Oil Services Limited acquired a 60% stake in Agip Nigeria Plc.

It all began when Agip Petroli International BV of Italy decided to divest from the downstream sector. With their eyes fixed on the future, the business partners, after wide consultations and meeting of minds, bought over the foreign company’s shares and added Agip Nigeria Plc, the company’s

local subsidiary, to their portfolio, using a N9.2 billion four-year syndicated loan from a consortium of local and international lenders, to finance its purchase.

About a year after, in 2003, the newly acquired companies were merged, resulting in the historic birth of Oando Limited.

That singular audacious move, in the eyes of many players in the industry, spoke to the sense and rhyme in the saying of Henry Ford, an American industrialist and founder of Ford Motor Company that “ Coming together is a beginning, staying together is progress and working together is success.”

Indeed, if anyone had thumped his chest that it would take the partners eons to break into the international market, he was mistaken! Their success story has defied all imaginable hypotheses, as Oando Plc was able to secure a cross-border listing on the Johannesburg Stock of Exchange (JSE) in South Africa in 2005!

Indeed, if you could undertake an anatomy of Oando, which has become a like a multi-trunk tree, you would marvel at the tireless efforts of Tinubu and his partners to constantly keep the company as one of the most-talked about in the energy business, locally and internationally.

In a spate of three decades, Tinubu and his partners have been able to maintain their preeminence in the sector owing to the value-added services rendered by the company’s subsidiaries: Oando Marketing Limited, OML, one of the largest downstream petroleum marketing companies in Nigeria with over 500 retail outlets across Nigeria, Ghana, and Togo; Oando Supply and Trading Limited, OST, one of the largest independent traders of crude and refined petroleum products in sub-Saharan Africa incorporated in 2004; Oando Gas & Power Limited, OGP, a pioneer in the development of Nigeria’s foremost gas distribution network, spanning 264km and serving over 150 industrial and commercial customers in Lagos, Calabar and Port Harcourt incorporated in 2004; Oando Energy Services Limited, OES, Nigeria’s largest indigenous oilfield services provider incorporated in 2005 to enhance indigenous participation with a fleet of 5 rigs; Oando Energy Resources, OER, one of Nigeria’s foremost indigenous upstream oil and gas companies.

In his subconscious, Tinubu, the Group Chief Executive Officer, GCEO, has always been desirous of making the company to be head and shoulders above its competitors.

Perhaps, this explains why about 10 years into its operations, Oando set forth on the upstream journey by securing a 42.75% interest in the marginal field, OML 56.

It later steadied its feet in 2007, with the acquisition of a 15% stake in OML 125 & OML 134.

Still waxing stronger, it also acquired a 30% interest in the Akepo marginal field, OML 90 in 2008.

Again, the acquisition of an 81.5% interest in Equator Exploration Limited in 2009, was another interesting chapter in the annals of the company.

Three years after, specifically in 2012, Oando was awarded a 100% in Blocks in Sao Tome EEZ.

Even so, history its replete with how Oando Energy Resources, OER, had, in 2014, acquired ConocoPhillips Nigerian assets for $1.8bn (inclusive of working capital), secured a 20% interest in the NAOC-Joint Venture (“the JV”) and augmented its total net 2P reserves to 503 million barrels of oil equivalent (mmboe), with peak net production levels of 45,000 barrels of oil equivalent per day (kboep/d).

In 2016, industry watchers were astounded when news broke that the Company was divesting from its Naira-earning businesses to focus on its US$-earning portfolio.

Though the reactions were not unexpected, it was a well considered move by the management, which in the periodic sale of its interest in the downstream between 2016 and 2019 as well as its stake in the midstream in 2017.

So far, Tinubu  has proven that they can see tomorrow today ! In 2021, the Company added Oando Clean Energy Limited to his portfolio. Though it aims to design and deliver clean energy projects, it is ultimately to fast-track the nigeria’s energy requirements, while also fulfilling the United Nation’s Race to Net Zero.

How more timeous can the Oando Clean Energy be ? Soon after its launch, the Lagos Government, in sheer recognition of the boundless goodies inherent in the project, beat a path to its door.

Contrary to the thinking in some quarters, it didn’t take forever for the Company and the Lagos State Government to sign an MoU to replace the state’s mass transit bus system with electric mass transit buses along with the supporting infrastructure.

In view of this, the Company, in May 2023, rolled out two electric mass transit buses in fulfilment of the Proof-of-Concept Phase, with 552 buses to be secured by the end of 2023.

Ten years after the widely reported purchase of ConocoPhillips Nigerian asset, Oando, in August 2024, completed the acquisition of 100% of Eni’s interest in NAOC, the operating company of the JV, thereby increasing its stake in the JV from 20% to 40%, and securing operatorship of the JV as well as doubling its 2P reserves to 996.2 mmboe.

In a surprising twist of fate, the company, for the first time in its long years of operations recorded an unsavory development when it announced a loss of N184bn in the 2014 financial year.

Today, it has become Nigeria’s largest non-government owned company in the energy industry with a market value soared to record highs from N74 billion in 2023 to N1 trillion in 2024.

Though there were reports of agitations in some quarters, the company, by the middle of that year, achieved a great feat that gladdened the hearts of its shareholders, by getting new investors, including Vitol, a Dutch oil trading giant, and Helios Holdings, to put their money in its downstream arm, Oando Marketing. Without a doubt, this is the stuff from which legends are made.

For some time now, Tinubu has made commitment to be processing oil not only to make Nigeria self-sufficient but also supply petrol, diesel et al to other African countries. To actualise this dream, Oando is currently planning to establish a 360,000-capacity refinery estimated at N254 billion in Lagos, which will include a 210,000 metric tonnes fuel terminal.

More than ever before, Tinubu seems to be unstoppable in their efforts to continuously expand the company’s exploratory asset base portfolio, while positioning itself for the energy transition through the development of its renewable energy business.

As it celebrates its 30 years anniversary, everyone is waiting with bated breath for the next move from the man known for  been very bullish in diversifying Oando’s operations as he establishes footprints along the value chain.

Oando, a prominent and leading  oil and gas company, has reached a market capitalization of N1 trillion, placing it among an exclusive group of companies.

This milestone follows a significant increase in its share price, which rose by 207.6% in August.

In early August, Oando announced its intention to complete a $783 million acquisition of Nigeria Agip Oil Company, a subsidiary of Eni.

This announcement contributed to increased investor interest, driving up the company’s stock price and resulting in a trading volume of 547 million shares.

With this development, Oando has joined the “Stocks Worth Over One Trillion” (SWOOTS) club, alongside other major companies such as Zenith Bank, SEPLAT, BUA Cement, and Dangote Cement.

Oando was the best-performing stock in August 2024, with its share price skyrocketing by 207.6% month-to-date in August.

The stock has climbed over 700% year-to-date, as of the market opening on September 3, 2024.

The stock is currently experiencing a strong bullish price action, buoyed by the positive sentiment surrounding the company’s performance and strategic moves.

Positive sentiment was further bolstered by the announcement of the Agip Oil acquisition.

This strategic move by Oando, according to experts, is not only solidifies its position as a leading indigenous energy player but also sends a strong message to the global energy community. It demonstrates the capability and ambition of Nigerian companies to compete on an international stage, challenging the traditional dominance of IOCs and paving the way for a more diversified and sustainable energy landscape.

Beyond the immediate impact on Oando’s operations, this acquisition is expected to have far-reaching implications for the Nigerian economy. The empowerment of indigenous energy companies like Oando aligns seamlessly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which emphasizes the importance of fostering local content development and promoting the participation of Nigerian businesses in the energy sector.

In a landmark move that has sent shockwaves through the Nigerian energy sector, Oando Plc, a leading indigenous energy solutions provider, has completed the acquisition of 100% of the shareholding interest in the Nigerian Agip Oil Company (NAOC) from the Italian energy giant, Eni. This transformative deal, valued at a staggering $783 million, not only solidifies Oando’s position as a major player in the industry but also heralds a new era of empowerment for indigenous energy companies in Nigeria.

The acquisition, which has been in the works for the past decade, is a testament to the visionary leadership and unwavering determination of Oando’s Group Chief Executive, Jubril Adewale Tinubu, CON. Tinubu, a serial entrepreneur and a driving force behind Nigeria’s energy revolution, has once again proven his ability to identify strategic opportunities and execute them with precision.

“Today’s announcement is the culmination of 10 years of hard work, resilience, and an unwavering belief that we would realize our ambition,” an elated Tinubu remarked. “It is a win, not just for Oando, but for every indigenous energy player as we take our destiny in our hands.”

This landmark transaction marks a significant shift in the Nigerian energy landscape, as it paves the way for indigenous companies to play a more prominent role in the upstream sector. Tinubu’s visionary leadership and strategic acumen have been widely praised by industry analysts and commentators.

“His visionary mindset and astute business acumen have allowed him to navigate the complexities of the Nigerian market and foster collaborations with leading international companies,” said Ms. Taiwo Alegeh, a foremost oil and gas analyst. “This not only speaks to his own success but also showcases the immense potential within Nigeria’s business landscape.”

The acquisition of NAOC, a company that has been a dominant player in Nigeria’s onshore oil and gas exploration and production, as well as power generation, is a game-changer for Oando. The deal will double the company’s oil equivalent output from 25,000 barrels per day to 50,000 barrels per day, significantly boosting its production and reserves.

“The transaction increases our current participating interests in Oil Mining Licences (OMLs) 60, 61, 62, and 63 from 20 per cent to 40 per cent and increases our ownership stake in the Joint Venture (JV) assets and infrastructure,” Oando stated in its announcement. This includes 40 discovered oil and gas fields, of which 24 are currently producing, as well as approximately 40 identified prospects and leads.

The acquisition also involves 12 production stations, approximately 1,490km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai phases 1 & 2 power plants, with a total nameplate capacity of 960MW, and associated infrastructure. This comprehensive portfolio of assets will undoubtedly strengthen Oando’s position in the Nigerian energy landscape.

Seun Ajayi, another industry analyst, praised Tinubu’s status as a world-class businessman, highlighting his visionary leadership and strategic acquisitions. “This latest acquisition by Oando is a testament to Tinubu’s ability to identify and seize opportunities that can transform the industry,” Ajayi said.

The acquisition comes at a pivotal moment in the Nigerian energy sector, as international oil companies (IOCs) have been pursuing divestment strategies, focusing on exiting shallow water and onshore assets while maintaining interests in the deep waters. This trend, driven by factors such as declining production and increasing operational risks, has created a void that indigenous companies like Oando are now poised to fill.

“This is a new dawn for the Nigerian energy sector, and we are confident that indigenous companies will play a pivotal role in this next phase of the nation’s upstream evolution,” Tinubu stated. “With our assumption of the role of operator, our immediate focus is on optimizing the assets’ immense potential in contributing to our strategic objectives, whilst complementing the nation’s plan to boost production outputs.”

The significance of this acquisition cannot be overstated, as it represents a transformative shift in the balance of power within the Nigerian energy industry. For decades, IOCs have dominated the upstream sector, with indigenous companies playing a relatively small role. However, this transaction marks a watershed moment, where Oando has emerged as a formidable player, poised to lead and operate oil and gas assets previously controlled by the international giants.

“It is rather uncanny that this acquisition comes exactly a decade after Oando’s landmark $1.8 billion acquisition of ConocoPhillips’ Nigeria interest, a transaction which incidentally made the company a Joint Venture (JV) partner on the asset alongside NNPC E&P Ltd (NEPL) and NAOC,” Oando noted in its announcement. “The ConocoPhillips transaction propelled Oando’s production from approximately 4,500 barrels of oil per day to 50,000 barrels of oil per day at the time.”

This strategic move by Oando not only solidifies its position as a leading indigenous energy player but also sends a strong message to the global energy community. It demonstrates the capability and ambition of Nigerian companies to compete on an international stage, challenging the traditional dominance of IOCs and paving the way for a more diversified and sustainable energy landscape.

Beyond the immediate impact on Oando’s operations, this acquisition is expected to have far-reaching implications for the Nigerian economy. The empowerment of indigenous energy companies like Oando aligns seamlessly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which emphasizes the importance of fostering local content development and promoting the participation of Nigerian businesses in the energy sector.

“Looking to the future, we will continue to pursue strategic opportunities that provide enhanced growth and value creation for our stakeholders, particularly in the clean energy, agri-feedstock sector, as well as infrastructure and mining,” Tinubu said, highlighting Oando’s commitment to diversifying its portfolio and contributing to the nation’s broader economic development.

The acquisition of NAOC is also expected to have a positive impact on Nigeria’s energy security and production. With Oando’s expertise and focus on optimizing the assets’ potential, the country’s oil and gas output is poised to receive a significant boost, helping to address the ongoing challenges of meeting domestic demand and maximizing export opportunities.

Eni, the Italian energy giant that previously owned NAOC, has also expressed its commitment to Nigeria’s economic diversification. The company has announced plans to assess the potential for producing agri-feedstock for Enilive bio-refineries and exploring various nature- and technology-based projects, such as clean cooking initiatives, to offset emissions.

“Eni remains committed to the country through investments in deepwater projects and Nigeria LNG,” the company stated, underscoring its continued involvement in the Nigerian energy sector, even as it divests from the onshore and shallow water assets.

The successful completion of this landmark acquisition has generated a wave of excitement and optimism within the Nigerian energy industry. Analysts and industry experts have unanimously praised Oando’s strategic vision and execution capabilities, recognizing the transformative potential of this transaction.

“This achievement will allow Eni to complete the transaction for the sale of Nigerian Agip Oil Company Ltd (NAOC), its wholly-owned subsidiary focused on onshore oil and gas exploration and production, as well as power generation in Nigeria, to Oando PLC, Nigeria’s leading national energy solutions provider, listed on both the Nigerian and Johannesburg Stock Exchanges,” Eni stated in its announcement.

The acquisition of NAOC is a testament to Oando’s resilience, adaptability, and unwavering commitment to driving the growth and development of the Nigerian energy sector. It is a significant milestone that will not only reshape the company’s trajectory but also redefine the dynamics of the industry as a whole.

As Oando embarks on this new chapter, the company’s leadership is confident that it will continue to identify and capitalize on strategic opportunities that create enhanced growth and value for its stakeholders. The diversification into clean energy, agri-feedstock, infrastructure, and mining sectors further underscores Oando’s vision to be a comprehensive energy solutions provider, contributing to the nation’s overall economic progress.

The successful acquisition of NAOC by Oando Plc marks a transformative moment in the history of Nigeria’s energy industry. It symbolizes the rise of indigenous companies and their ability to compete on a global scale, challenging the long-standing dominance of international oil giants. This milestone achievement not only strengthens Oando’s position but also paves the way for a more vibrant, diversified, and sustainable energy landscape in Nigeria, ultimately benefiting the nation’s economic development and energy security.

The acquisition of the Nigerian Agip Oil Company (NAOC) by Oando Plc has not only transformed the fortunes of the indigenous energy company but has also shone a spotlight on the untapped potential within Nigeria’s oil and gas sector. As the industry grapples with declining production and operational challenges, Oando’s bold move has proven that Nigerian companies are poised to rejuvenate the industry and drive its future growth.

According to Dr. Ainojie Irune, the Executive Director of Oando Plc and Chief Operating Officer of Oando Energy Resources, the successful completion of this landmark transaction has demonstrated the strength and capabilities of indigenous players in the sector. “If you look at the local companies that have stepped forward… there’s no doubt that indigenous capacity exists,” Irune stated in an interview with S&P Global Commodity Insights.

The dire state of Nigeria’s oil production, which has fallen well below its capacity of over 2 million barrels per day (bpd) of crude and condensate, has been a source of concern for industry stakeholders. Factors such as rampant oil theft, sabotage in the restive Niger Delta, underinvestment, and sluggish exploration activity have all contributed to the country’s production woes. In May 2024, Nigeria’s crude and condensate production stood at a mere 1.47 million bpd, according to the Platts OPEC Survey from S&P Global Commodity Insights.

This challenging landscape presents a unique opportunity for indigenous companies like Oando to showcase their ability to revive the sector and unlock its full potential. With the successful acquisition of NAOC, Oando has not only doubled its oil equivalent output but has also gained a significant stake in the joint venture assets and infrastructure that include 40 discovered oil and gas fields, 24 of which are currently producing.

Irune believes that the empowerment of indigenous players can be a game-changer in addressing the issues plaguing the industry. “My personal opinion is that having indigenous players will definitely improve issues around fairness and this need to engage in sabotage and theft. Collectively, independents can build a more cohesive and collaborative oil sector,” he said.

The acquisition of NAOC has set an industry precedent, and Oando anticipates that this landmark deal will pave the way for further asset divestments by international oil companies (IOCs) to indigenous players. These divestment deals are expected to bring in fresh capital, technology, and expertise, which will help to increase oil production, reduce carbon emissions, and create new opportunities for Nigerians in the industry.

The distinct advantages that indigenous companies possess, such as local knowledge, operational flexibility, and stronger community relations, offer unparalleled opportunities to optimize value creation within the sector. When coupled with global best practices, this advantage can unlock new avenues for growth and innovation.

The acquisition of NAOC by Oando has been widely celebrated as a major victory for the company’s Group Chief Executive, Jubril Adewale Tinubu, CON. Many in the business world, particularly the oil and gas industry in Nigeria, have described Tinubu as a “soldier and champion,” a strategist, and a serial winner, whose many stories of happy endings have confounded even his harshest critics.

Tinubu’s feats as a hugely successful player in the dangerous and turbulent oil and gas sector have earned him the admiration of many. His audacity to face challenges where others have fallen by the wayside has made him a role model for aspiring entrepreneurs and business leaders in Nigeria.

The acquisition of NAOC not only speaks to Oando’s own success but also showcases the immense potential and possibilities that lie within Nigeria’s business landscape for Nigerians. This landmark deal has demonstrated that indigenous companies can compete on a global scale and challenge the long-standing dominance of international oil giants.

As Oando looks to the future, the company is poised to continue pursuing strategic opportunities that provide enhanced growth and value creation for its stakeholders. The diversification into clean energy, agri-feedstock, infrastructure, and mining sectors further underscores Oando’s vision to be a comprehensive energy solutions provider, contributing to the nation’s overall economic progress.

Tinubu’s visionary leadership and strategic acumen have been widely praised by industry analysts and commentators. “His visionary mindset and astute business acumen have allowed him to navigate the complexities of the Nigerian market and foster collaborations with leading international companies,” said Ms. Taiwo Alegeh, a foremost oil and gas analyst. “This not only speaks to his own success but also showcases the immense potential within Nigeria’s business landscape.”

The successful completion of the NAOC acquisition has generated a wave of excitement and optimism within the Nigerian energy industry. Analysts and industry experts have unanimously praised Oando’s strategic vision and execution capabilities, recognizing the transformative potential of this transaction.

Femi Ojo, another industry analyst, highlighted Tinubu’s status as a world-class businessman, lauding his visionary leadership and strategic acquisitions. “This latest acquisition by Oando is a testament to Tinubu’s ability to identify and seize opportunities that can transform the industry,” Ojo said.

The significance of this acquisition cannot be overstated, as it represents a transformative shift in the balance of power within the Nigerian energy industry. For decades, IOCs have dominated the upstream sector, with indigenous companies playing a relatively small role. However, this transaction marks a watershed moment, where Oando has emerged as a formidable player, poised to lead and operate oil and gas assets previously controlled by the international giants.

The empowerment of indigenous energy companies like Oando aligns seamlessly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which emphasizes the importance of fostering local content development and promoting the participation of Nigerian businesses in the energy sector. This acquisition is expected to have far-reaching implications for the Nigerian economy, contributing to the nation’s energy security, production, and overall economic development.

Eni, the Italian energy giant that previously owned NAOC, has also expressed its commitment to Nigeria’s economic diversification. The company has announced plans to assess the potential for producing agri-feedstock for Enilive bio-refineries and exploring various nature- and technology-based projects, such as clean cooking initiatives, to offset emissions.

“Eni remains committed to the country through investments in deepwater projects and Nigeria LNG,” the company stated, underscoring its continued involvement in the Nigerian energy sector, even as it divests from the onshore and shallow water assets.

The successful completion of this landmark acquisition has generated a wave of excitement and optimism within the Nigerian energy industry. Analysts and industry experts have unanimously praised Oando’s strategic vision and execution capabilities, recognizing the transformative potential of this transaction.

“This achievement will allow Eni to complete the transaction for the sale of Nigerian Agip Oil Company Ltd (NAOC), its wholly-owned subsidiary focused on onshore oil and gas exploration and production, as well as power generation in Nigeria, to Oando PLC, Nigeria’s leading national energy solutions provider, listed on both the Nigerian and Johannesburg Stock Exchanges,” Eni stated in its announcement.

The acquisition of NAOC is a testament to Oando’s resilience, adaptability, and unwavering commitment to driving the growth and development of the Nigerian energy sector. It is a significant milestone that will not only reshape the company’s trajectory but also redefine the dynamics of the industry as a whole.

As Oando embarks on this new chapter, the company’s leadership is confident that it will continue to identify and capitalize on strategic opportunities that create enhanced growth and value for its stakeholders. The diversification into clean energy, agri-feedstock, infrastructure, and mining sectors further underscores Oando’s vision to be a comprehensive energy solutions provider, contributing to the nation’s overall economic progress.

The successful acquisition of NAOC by Oando Plc marks a transformative moment in the history of Nigeria’s energy industry. It symbolizes the rise of indigenous companies and their ability to compete on a global scale, challenging the long-standing dominance of international oil giants. This milestone achievement not only strengthens Oando’s position but also paves the way for a more vibrant, diversified, and sustainable energy landscape in Nigeria, ultimately benefiting the nation’s economic development and energy security.