Oando Plc · NSENG:OANDO
Oando — Investor Presentation (March 2008)
20 slides from Oando's investor presentation, Mar 26, 2008
Slide 1: Oando-NGC: Partnering for the development of Gas Supply Infrastructure in Nigeria
Oando- NGC Partnering for the development of Gas Supply Infrastructure in Nigeria Bolaji Osunsanya Managing Director, Oando Gas & Power March 26th 2008 1
Slide 2: Outline
Outline • Background / Context • Gas Infrastructure Blueprint • Opportunities of Interest • Possible Deal Structure • Timeframe • Next Steps 2
Slide 3: Context
Context With the approval of the Gas Pricing regime and the publication of the infrastructure blue print, this is an auspicious time for a prudent investor to make its foray into the development of gas delivery infrastructure in Nigeria. NGC, the pioneer in the development of gas infrastructure in N
Slide 4: History
History To date, Oando, through Gaslink has had an 8 year relationship with the Nigerian Gas Company, the success of which is demonstrated by the following achievements: – Over 224km of gas pipelines in different parts of the country arranged by Oando subsidiaries – $156m (NGN18.7bn) of investment m
Slide 5: Players in the Gas Value Chain
Players in the Gas Value Chain Local participation remains limited to low-value segments, even lower, when discounted for Government participation. Oilfield Services Oil and Gas Gas Transmission Distribution Markets E&P Processing Oando-Halliburton Oando Shell NGC Oando Power (Oando) Schlumberger Ch
Slide 6: Gas in Nigeria today
Gas in Nigeria today Issues Opportunities • New Regulation is advocating Open • Infrastructure / Access Network development • OGIC – The role of and reporting path of • Derivative Products NGC is unclear (LPG, Petrochemicals, • Security of Supply GTL…) • Appropriate Pricing ? • Privatization? • Dome
Slide 7: Gas Master Plan
Gas Master Plan Network Schematic with TSGP Revision 2 ‘Monday, August 05, 2007
Slide 8: Gas Infrastructure Blueprint
Gas Infrastructure Blueprint 2 8
Slide 9: Gas Infrastructure Blueprint
Gas Infrastructure Blueprint ID Pipeline Project Length (km)/ Capacity Description Diameter(in) 2 OB-OB to Oben 100 / 42 1700 Provides security of Supply to the West 3 Calabar to Ajaokuta 365 / 3000 Provides Security of Supply to North. Serves as (48,48,56) pre-investment for TSGP( Abia, Anambra en
Slide 10: Specific Opportunities
Specific Opportunities 2 3 B C 2 10
Slide 11: Specific Opportunities
Specific Opportunities Pipeline Project Length Diameter Capacity COD (km) (in.) (mmscf/d) Year OB-OB to Oben 100 42 1700 2012 Calabar to Ajaokuta Phase 1 (Okopedi Ito) 55 56 3000 2009 Phase 2 (Umuahia) 65 48 2200 2010 Phase 3 (Ajaokuta) 245 48 2200 2011 Total 365 CPF Capacity COD Year CPF Capacity C
Slide 12: Immediate Opportunities
Immediate Opportunities Development of OB/OB CPF • Purpose of this CPF is to assure security of supply to the West Construction of OB/OB to Oben Gas transmission Line • Primary purpose of this pipeline is to assure security of supply to Lagos • Oando (Gaslink) is the primary private sector off-taker
Slide 13: Peculiarities of CPF/Pipelines
Peculiarities of CPF/Pipelines ISSUES MITIGANTS - Partners with deep pockets Capital Intensive - Capital Markets & International financial markets Technical - Technical Partners with proven experience - Access to cutting edge technology Capabilities - Assured O&M capabilities Assured Supply / - Leve
Slide 14: Partnership Model
Partnership Model ISSUES ACTIVITIES - NGC / Oando & Highly capitalized institutions - Leverage JSE & NSE Capital - Oando is currently mobilizing to raise the required financing through o Seed Equity o Guarantees o Development Finance Institutions - LOI with 2 business/technical partners - Access to
Slide 15: Deal Structure
Project Deal Structure Make up Model OGP NGC OB/OB x% y% BOT Pipeline OB/OB Limited OGP NGC OC Mobil? x% z% y% Addax? Multi-Party Calabar CPF Moni Pulo? JV Calabar CPF NEWCO Multi-party OGP Investors NGC z% y% Multi-Party Calabar – North x% JV Pipeline N-South NEWCO OGP NGC OC Total? Multi-Party OB/
Slide 16: Time Frame
Time Frame Development (6 months) Construction (12 months) OB/OB Pipeline Development (9 months) Construction (24 months – phase 1) Calabar CPF Development (12 months) Construction (36 months) Calabar – North Pipeline Development (9 months) Construction (24 months) OB/OB CPF 2 16
Slide 17: Next Steps
Next Steps • Formal response in 30 days • MOU with NGC • Collaboration MOUs with other partners • Presentation to Minister/President • Joint Task Force : Program Management – 2 per Investor? 2 17
Slide 18: Positioned to capture maximum value along the entire energy chain
We have positioned ourselves to capture maximum value along the entire energy chain and harvest synergies between subsidiaries Oil and Gas Primary Secondary Refining Trading Storage Channels Consumer E&P Distribution Distribution Production Refinery Supply & Marketing & Dev. Co. Division Trading Ene
Slide 19: Oando an Integrated Energy Company
Oando an Integrated Energy Company Oando Plc Marketing Supply and Gas (Pipeline Energy Exploration and Refining Power No. 1 Trading Transmission of Services Production New Build A Significant marketer of Dominant Natural Gas) Offering Assets option play Petroleum local player 20-year B
Slide 20: Thank you
Thank you http://www.oandoplc.com 6 20