Otedola Sells Interest In Forte Oil, Focuses On Power Generation

 

The Chairman of Forte Oil Plc, Mr Femi Otedola, has completed the sale of all his shares in the firm’s downstream and upstream businesses.

Otedola on his verified Instagram handle on Wednesday said he had exited the downstream and upstream sub-sectors of the oil and gas industry but he did not disclose the buyer of his stakes in the upstream business.

The Nigerian billionaire also disclosed that his next investment focus will be on Nigeria’s power generation business.

“A few years ago, my team and I embarked on an arduous task of transforming a moribund petroleum marketing business, African Petroleum Plc (formerly British Petroleum) into Forte Oil Plc – a leading integrated solutions provider with solid footprints in downstream petroleum marketing, upstream services and power generation and one in which we built intrinsic value to the benefits of our shareholders.

“In line with my principle of business focus, we have divested from our marketing and upstream businesses and shall from now on focus and consolidate on the gains of our power generation business, Geregu Power Plc.

“We wish our successors the very best and urge them to build on our legacies, which have been established since 1964.”

READ ALSO: Buhari Appoints Kyari As New NNPC GMD

Forte Oil had on December 24, 2018, hinted at the divestment by its majority shareholder, with Otedola saying he had reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his full 75 percent direct and indirect shareholding in the company’s downstream business.

In October 2015, the firm announced that the Mercuria Energy Group Holdings SA had acquired 17 percent of its equity, valued at $200m.

The divestment comes more than three years after the firm sold 17 percent of its equity to a Swiss oil trading firm.

Forte Oil emerged the biggest gainer at the end of trading on the NSE on Wednesday as its share price rose by 10 percent to close at N34.65.

 

 

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A few years ago, my team and I embarked on an arduous task of transforming a moribund petroleum marketing business, African Petroleum Plc (formerly British Petroleum) into Forte Oil Plc; a leading integrated solutions provider with solid footprints in downstream petroleum marketing, Upstream Services and Power Generation and one in which we built intrinsic value to the benefits of our shareholders. In line with my principle of business focus, we have divested from our marketing and upstream businesses and shall from now on focus and consolidate on the gains of our power generation business, Geregu Power Plc. We wish our successors the very best and urge them to build on our legacies which have been established since 1964 🙏🏿 …F.Ote💲

A post shared by Femi Ote💲 (@femiotedola) on

New Petrol Pump Price Enjoys High Compliance Nationwide

petrolThere seems be high compliance level for the new pump price of petrol across the country.

This is according to Channels TV correspondents, who visited petrol stations across the country.

While petrol is selling at between 86 naira and 86.50 in Abuja, the product is selling for N87 per litre in Kano.

Many petrol stations in the Federal Capital Territory have been nearly empty with just two to three cars at the fuel pumps at a time.

At the NNPC filling station visited, the pump price was 86 naira per litre and the station manager who spoke off camera said that the new pump price was put in place as soon as government announced the reduction.

Other filling stations visited; Conoil, Oando, Forte Oil, were selling at N86.50k per litre.

Vehicle owners buying at the new rate said that they were happy that the product was available whether or not there is a reduction in pump price.

They also said that the 50 kobo reduction would be taken as a sign of better things to come.

However, one customer asked that federal government pay attention also to the pump price and availability of kerosene which he said is used by a greater number of Nigerians, especially the poor.

For the oil majors in Lagos, they have reverted to the approved rate of N86.50k, while the same may not be said of independent marketers who are still selling above the recommended retail price.

The situation seems to be bad in Ogun State where the product is still selling for between N110 and N120 per litre except for the capital city, Abeokuta where the NNPC mega station is selling at the new pump price.

Otedola, Transcorp to take over Ughelli and Geregu power plants

The Bureau of Public Enterprises (BPE) has named the preferred bidders for some of the five power generation plants that are to be privatised with the ongoing reforms of the power sector.

A consortium which included Transcorp PLC was the highest bidder for the Ughelli Power Company, with an offer of $300 million, the Bureau of Public Enterprises (BPE) announced at the bidding ceremony in Abuja on Tuesday.

The bid for Geregu Power plant has won with a bid of $132 million by a group which included Forte Oil, a petrol importing company owned by billionaire oil tycoon Femi Otedola.

A consortium made up of Nigerian, Chinese and British companies is set to buy the Sapele Power Plant for $201 million, while Mainstream Energy, a group including Russian firm RusHydro and several Nigerian companies won a contract to manage the Kainji Power Company.

North-South Power, a mostly Nigerian consortium, won the bid for Shiroro Power Plant.

Mainstream Energy and North-South Power had no competitors for their bids, raising question marks over the legitimacy of the sales.

The sale of the remaining generation firm, the Afam power plant, is being re-tendered following the revealation that the former Minister of Power, Professor Barth Nnaji had a stake in one of the consortiums bidding for the plant.

Prof Nnaji, who has led the reform of the power sector since the advent of the Jonathan’s administration resigned his appointment from the cabinet last month.

There are concerns over financial difficulties after the Central Bank of Nigeria (CBN), last week banned the nation’s commercial banks from granting loans to 113 companies for failing to pay previous debts.

These affected company include Forte Oil and some others that bidding for the power assets.

Speaking at the ceremony to announce the winners for generation firms in Abuja, the Minister of State for Power, Darius Ishaku, stated that “this is a milestone in the power privatisation process”, adding that  “I’m sure each and every one of you would agree the process has been transparent.”

The highest bidders for the electricity distribution companies are due to be announced on October 16.