SEC Orders Resignation Of Oando Board, Bars Wale Tinubu

 

The Securities and Exchange Commission (SEC), has given a directive for the resignation of the affected board members of an energy company, Oando Plc, and also barred the Group Chief Executive Officer of the company, Wale Tinubu, and his deputy, from being directors of the companies for five years.

This is after the capital market regulator concluded investigation into the activities of the company, regarding alleged infractions and other market violations.

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Following the receipt of two petitions by the Commission in 2017, investigations were conducted into the activities of Oando Plc (a company listed on the Nigerian and Johannesburg Stock Exchanges).

Certain infractions of Securities and other relevant laws were observed. The Commission further engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando Plc.

The general public is hereby notified of the conclusion of the investigations of Oando Plc. The findings from the report revealed serious infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, irregular approval of directors remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arms length, amongst others.

SEC also ordered payment of monetary penalties by the company to affected individuals and directors, and refund of improperly disbursed remuneration by the affected Board members to the company.

The Commission is confident that with the implementation of the above directives and introduction of some remedial measures, such unwholesome practices by public companies would be significantly reduced.

Therefore, in line with the Federal Governments resolve to build strong institutions, Boards of public companies are enjoined to properly perform their fiduciary duties as required under extant securities laws the statement added.

In addition, the commission also directed the convening of an extraordinary general meeting on or before July 1, 2019, to appoint new directors.
The regulator said all issues with possible criminality to be referred to the appropriate criminal prosecuting authorities.

Adenuga, Tinubu, Okoli Receive OTL Lifetime Achievement Awards

otl_awardOTL Africa has held a dinner and award night to conclude its Downstream Conference 2016 which kicked off three days ago.

The event incorporates awards of excellence and special recognition, with key players in the industry fully represented, expanding the networking range in a glamorous atmosphere.

Since it came into existence 10 years ago, it has become a constant on the diaries of the key players on the continent and beyond. It is the high point of the downstream industry calendar and the climax of the OTL Africa week.

The OTL Award celebrates some of their major sponsors and also celebrates excellence, innovation and achievement in downstream petroleum business, recognizing true value added efforts being made by organisations and persons in oil and gas business.

Awards were also given in the oil marketing categories like Best Consumer Service Retail, Best Marked Lubricant, Best Branded Lubricant and Oil Marketer of the Year.

The big one at the OTL Award is the Lifetime Achievement Awards. It went to three distinguished Nigerians; CEO, Oando Plc, Wale Tinubu; Chairman, WABECO Petroleum Ltd, Chief Silverius Okoli, and Chairman, Conoil Plc, Chief Mike Adenuga, who was ably represented.

The conference traditionally sets agenda for engagement by parties in business, policy, industry and operations.

Participants largely described the Downstream 10th anniversary annual social gathering as largely successful and with the success recorded this year, the players in oil trading and logistics say they look forward to another year to celebrate.

Oando Signs $115.8mn Agreement With Helios   

OandoOando Plc has signed a mid-stream agreement with Helios Investment Partners, a premier Africa-focused private investment firm, to acquire 49% of the voting rights in Oando’s mid-stream business subsidiary, Oando Gas and Power Limited.

Oando will still retain 49 percent of voting rights in Oando Gas and Power Limited while the remaining two percent will be held by a local entity.

In a statement to the Nigerian Stock Exchange, the group explained that the agreed transaction consideration of 115.8 million dollars is conditional upon receipt of regulatory approvals and subject to customary purchase price adjustments.

According to the oil group’s Chief Executive, Wale Tinubu, this strategic alliance will firmly leverage the group’s local knowledge and expertise alongside Helios’ strong financial capabilities to revolutionize the sector and position gas as a key driver for Nigeria’s economic empowerment.

Major Oil Marketers Association, MOMAN Elect New Chairman

momanThe umbrella body of the major oil marketing companies in Nigeria, MOMAN, has elected the Group Chief Executive Officer of Forte Oil Plc, Mr Akin Akinfemiwa, as its new Chairman.

Mr Akinfemiwa takes over from Mr Wale Tinubu, the founding Chairman of MOMAN who promoted highest standards and best practices within the industry.

The election of the new chairman of the Major Oil Marketers Association of Nigeria (MOMAN) comes at a time in which the continuity of the association’s active engagement with the federal government is very crucial for the downstream sector of the petroleum industry.

Heading the most capitalised listed integrated energy company in Nigeria, Mr Akinfemiwa’s new position as MOMAN Chairman will look to support the government’s policies of ensuring compliance of industry operators in the effective distribution and marketing of petro-products and in the development of new opportunities.

In a statement released on Tuesday, Mr Akinfemiwa said that the association’s main focus is to continue close cooperation with all regulatory bodies to find lasting solutions to the problems faced in the downstream oil sector, positioning the sector as a driver towards national economic revival and development.

Mr Akin Akinfemiwa is an experienced and seasoned international oil trader with special focus on oil and petro-products, futures, swaps and derivatives.

Insurgency: FG Constitutes Committee On Victims Support Fund

In its effort to scale up support for victims of insurgency and terror attacks nationwide, the Nigerian Government has constituted a Committee on Victims Support Fund to mobilize resources and administer appropriate support to victims of insurgency and Boko Haram terror activities all over the country.

Accordingly, the President, Dr. Goodluck Jonathan, has approved the composition and appointment of members of the Committee on Victims Support Funds as follows:

  1. Gen. TY Danjuma, GCON                                         –        Chairman
  2. Mr. Fola Adeola                                                       –           Deputy Chairman
  3. Alh. Mohammed Indimi                                       –           Member
  4. Alh. Abdulsamad I. Rabiu                                    –           Member
  5. Alh. Sani Dauda                                                       –           Member
  6. Mrs. Folorunsho Alakija                                     –           Member
  7. Mr. Cosmas Maduka                                            –           Member
  8. Mr. Jim Ovia                                                          –           Member
  9. Mr. Wale Tinubu                                                 –           Member
  10. Alh. Sani Sidi, DG, National Emergency Management Agency (NEMA)          –           Member
  11. Air Vice Marshal Tony Omenyi (Representing Defence Headquarters)     –           Member
  12. CP Salisu Fagge, representing Nigerian Police Force       –           Member
  13. Mr. Sayana Yusuf, representing Department of State Services                  –           Member
  14. Chief Uche Secondus, PDP Deputy National Chairman (South)                 –           Member
  15. Alh. Tijani Tunsah, APC Deputy National Chairman (North)                    –           Member
  16. Representative of Christian Association of Nigeria (CAN) —          Member
  17. Representative of Jamaatul Nasril Islam (JNI)                 –           Member
  18. Chief(Mrs.) Nkechi Mba, Representing National Council of Women Societies    –   Member
  19. Prof. Ben Angwe, Executive Secretary, National Human Rights Commission (NHRC)  – Member
  20. Representative of the United Nations (UN)                 –           Member
  21. Representative of Department for International Development (DFID)     –     Member
  22. Representative of Unites States Agency for International Development (USAID) – Member
  23. Representative of International Committee of the Red Cross (ICRC)           –           Member
  24. Alh. Balarabe Musa, Representing Conference of Nigerian Political Parties (CNPP) – Member
  25. Two (2) Representatives of Local Civil society/Youth Groups (Male & Female) –           Members.
  26. Office of the Secretary to the Government of the Federation (OSGF)     –     Secretariat

Terms of reference

  1. To identify sources and ways of raising sustainable funding to support victims of Boko Haram terror activities;
  2. To develop appropriate strategies for the fund raising;
  3. To ascertain the persons, communities, facilities and economic assets affected by Boko Haram terror activities;
  4. To assess and determine the appropriate support required in each case;
  5. To manage, disburse or administer support to the victims as appropriate;
  6. To address related challenges as may be appropriate; and
  7. To advise Government on other matter(s) necessary or incidental to support victims of Boko Haram terror activities.

According to the press release by the Secretary to the Government of the Federation, Anyim Pius Anyim, the Committee would be inaugurated by the President on Wednesday, July 16, 2014 by 10.00am at the Council Chamber, Aso Villa, Abuja.

Fashola Commissions Alausa Power Project

Lagos State Governor, Mr Babatunde Fashola (SAN) on Thursday commissioned the 10.6 mw Alausa power project that would power the entire State Secretariat, Alausa and Obafemi Awolowo Way.

The Governor who spoke during the commissioning of the Alausa power plant which was carried out in conjunction with Oando Gas and Fidelity Bank Plc., explained that several places and landmarks like the Carter bridge which was abandoned for many years because it was unsafe has now been lit and made safe.

He added that 12 streets have been recently lit up in Alimosho area and is already having enormous benefit because market women who usually close at 5 or 6 pm are now trading into the wee hours of the night, with sales already improved by over 50 per cent from what it used to be.

Governor Fashola reiterated that the solution to unemployment and creating improved economic situation lies in made  in Nigeria goods. He expressed happiness that the Alausa power project is another made in Nigeria project, delivered by a Nigerian government with two Nigerian companies using largely Nigerian personnel to solve a Nigerian problem.

“I see a lot of good coming out of the gloom and sorry stories. I see a lot of good. Those who continue to put our country down should continue, but some of us can see the Nigeria of tomorrow and it would not happen by magic but by hard work. Some of us, especially members of my team dared to dream and as long as they continue to dream we would deliver stuffs like this”.

“I welcome you all warmly to the first secretariat that would run its own power without diesel, but on natural gas and clean fuel in the Federal Republic of Nigeria. This could not have happened without Public Private Partnership (PPP). Go and check the balance sheets of Oando Gas and Fidelity Bank and the number of people they employ and you would see the gains of PPP”, he emphasised.

He added that the new Alausa power plant which will power all the offices in the Lagos State Secretariat would bring about efficiency in terms of the work output and lead to a resultant increase in productivity from the workers and the state economy.

Also speaking, the Group Managing Director and Chief Executive Officer of Oando Oil, Mr Wale Tinubu  said the new Alausa Power Plant will provide 10.6 Megawatts of electricity to the State Secretariat and will be powered by gas through an environmental friendly Lagos pipeline.

Oando To Purchase ConocoPhillips’ Asset

Oando is close to securing funds to buy ConocoPhillips’ Nigerian assets, the company’s chief executive said on Wednesday, as he looked to allay fears it is struggling to raise finance for the $1.79 billion deal.

Wale Tinubu told Reuters in an interview in Lagos that the firm, having already raised the additional equity needed in February with a rights issue, now also has agreed in principle the necessary debt.

Oando has been looking for the past year to finance its transformation from a marketer of refined petroleum products into an upstream firm focused on oil and gas exploration and production.

The deal to acquire Conoco’s fields, that were producing around 43,000 barrels of oil per day (bpd) last year and have proven reserves of 213 million barrels of oil equivalent, is scheduled to close by mid-2013.

But analysts have questioned whether Oando can persuade investors to deliver the funds.

“We’re confident in our ability to raise finance,” Tinubu said. “Because we have a diverse group, we’ve been able to raise equity from our shareholders and extract value from parts of our business to reinvest in the upstream.”

Tinubu also said that in reality the deal would only cost Oando around $1.5 billion, not the $1.79 billion headline figure. He declined to explain the discrepancy, but a source close to the deal said this was because of a net positive cash flow from the assets of $200-$300 million.

Tinubu said of the $1.5 billion cost around $725 million would come from debt.

“The debt is already arranged,” he said, but he declined to name banks involved and said some details remained to be worked out. Banking sources say the debt will be in the form of a syndicated loan of international and Nigerian banks.

Tinubu said once Oando had completed its acquisitions the upstream business would account for about three quarters of its assets, against 40 percent now.

The ConocoPhillips deal is the latest of several sales of Nigerian onshore assets made by foreign oil companies and Brazil’s Petrobras is now looking to sell $5 billion of assets.

“We would certainly be interested in considering it,” Tinubu said when asked if Oando was interested in buying some of the Petrobas interests. “We know we will be approached by them,” he added.

Political pressure from a government keen to have more indigenous firms operating fields plus rampant oil theft by armed gangs hacking into pipelines and potential liabilities from damaging oil spills have encouraged some foreign firms to slowly move out of onshore oil production.

But other firms like Britain’s Afren and Nigerian firms like Seplat and Conoil are moving in, creating competition for Oando.

Tinubu said local companies like Oando were in a better position to handle issues with local communities.

“Being an indigenous company, we’re better suited to handle the issue of theft and of community relations,” he said.