Oando Oil Production expected to rise with Acquisition of ConocoPhillips Nigeria
Oando Energy Resources Incorporated (OER), a subsidiary of Oando Plc, yesterday announced a swift rise in its total crude oil production capacity from just about 4,500 barrels per day (bpd) to 50,000bpd following its acquisition of the Nigerian upstream oil and gas assets of ConocoPhillips for a total cash consideration of $1.5 billion.
The Chief Executive Officer of OER, Mr Pade Durotoye said at a press briefing in Abuja, that the acquisition of ConocoPhillips now transformed it as a leading indigenous Nigerian oil and gas operator.
He stated that OER expects its shareholders to see a year-end profit after tax in the region of $150 million, following from similar closing balance sheet of ConocoPhillips which last operated the assets and gained that much in 2013. The acquisition includes its interests in six oil fields; four of which are currently producing, 12 production stations, Brass River terminal with a capacity of 3.6 million barrels (mmbbls), three gas plant facilities, 1490 kilometres of pipeline network and the 480 megawatts (MW) Kwale Okpai Independent Power Plant (IPP)