| Fri 13 Feb 2009, 12:00 | | OAO - Oando Plc - Oando takes delivery of its flagship oil rig |
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OAO
UNTP
OAO - Oando Plc - Oando takes delivery of its flagship oil rig
Oando Plc
(Incorporated in Nigeria and registered as an external company in South
Africa)
Registration number: RC 6474
(External company registration number: 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
ISIN: NG00000UNTP0
("Oando" or "the Company")
Oando takes delivery of its flagship oil rig
Fleet of state-of-the-art rigs now three
Oando, Nigeria`s leading integrated energy solutions provider, has taken
delivery of an additional rig named the "Constitution" purchased in July 2008
at a cost of USD $53.5 million. This brings to three the number of rigs in the
company`s fleet, underpinning its commitment to providing world-class oil
field services in the Gulf of Guinea.
The three rigs are for swamp operations and have the following specifications:
S/N Rig Name Rig Type Pressure Horse Drilling Application
Output Power Depth
(hp)
1. Searex 6 Swamp 10,000 2,000 25,000ft + Drilling,
barge psi work over
wells
2. Searex 12 Swamp 10,000 2,000 25,000ft + Drilling,
barge psi work over
wells
3. Constitution Swamp 15,000 3,000 30,000ft + Drilling,
barge psi work over
wells and
High
pressure,
High
temperature
(HPHT)
wells
Whilst the Constitution and Searex 12 are set to commence long term contracts,
the Searex-6 is in the final stages of its refurbishment programme and will be
deployed in the near future.
Commenting on the acquisition, Mr. Uche Dimiri, Chief Executive Officer, Oando
Energy Services, said "With the capacity to drill to depths in excess of
30,000 ft, a pressure output of over 15,000 psi and the ability to handle high
temperatures, the Constitution is currently the first of its kind in Nigeria.
The deployment of this rig will ensure that previously inaccessible reservoirs
can now be explored for their oil and gas content, thereby increasing
Nigeria`s production and reserves."
According to the Group Chief Executive of Oando, Mr. Wale Tinubu, "A key part
of our diversification strategy from the downstream to a truly integrated
company, includes a 5-year, $500 million investment in our energy services
business. This latest acquisition makes our investment to date in excess of
$150 million with a further commitment to increase our rig fleet in this
financial year. The diversified model assures of steady earnings in a period
of oil price volatility and maximises our shareholder value.
He further commented, "once again Oando has demonstrated its commitment to be
the leading beacon in the oilfield services sector of the Nigeria`s local
content policy."
Johannesburg
13 February 2009
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 13/02/2009 12:00:02 Produced by the JSE SENS Department.
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