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Report Date : |
20.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
OANDO ENERGY SERVICES LIMITED |
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Registered Office : |
2, Ajose Adeogun Street, Victoria Island, Lagos State |
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Country : |
Nigeria |
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|
|
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Financials (as on) : |
30.09.2011 |
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Date of Incorporation : |
18.01.2005 |
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Com. Reg. No.: |
RC: 614694 |
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Legal Form : |
Private Limited Company |
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|
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Line of Business : |
Total Fluids Management (Drilling and Completion Fluids), Drill Bits & Engineering Services, Drilling Rigs Services. |
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No. of Employees : |
Over 50 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Nigeria |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
OANDO ENERGY
SERVICES LIMITED
The Company is engaged in Total Fluids
Management (Drilling and Completion Fluids), Drill Bits & Engineering Services,
Drilling Rigs Services.
Subject is located at Zenon House (7th
Floor), 2, Ajose Adeogun Street, Victoria Island, Lagos State, Nigeria.
COMPANY NAME: OANDO ENERGY SERVICES LIMITED
REGISTERED
NAME: OANDO ENERGY
SERVICES LIMITED
REGISTERED
ADDRESS 2,
Ajose Adeogun Street, Victoria Island, Lagos State, Nigeria
HEAD OFFICE ADDRESS: Zenon House (7th
Floor), 2, Ajose Adeogun Street, Victoria Island,
Lagos
State, Nigeria
TELEPHONE: 234-1-2622311 – 4, 2715460-3 (Ext.
6515)
MOBILE: 234-8035505338
FAX: 234-2622311
E-MAIL: oesbd@oandoplc.com,
info@oandoenergy.com
WEBSITE: www.oandoplc.com/oando-energy-services/
Currency: All monetary
quoted in this report are in Nigerian Naira, the local currency or unless
otherwise stated. The exchange rate is N148 to 1 US $.
NATURE OF PREMISES: Leased
office space occupying approximately 5,500 square meters
DATE INCORPORATED 18th January, 2005
LEGAL FORM: Private Limited Company
REGISTRATION NO: RC:
614694
SHARE CAPITAL: 10,000,000.00
ISSUED CAPITAL: 5,000,000.00
PAID-UP CAPITAL:
5,000,000.00
STAFF STRENGTH:
Over
50
2, Ajose Adeogun Street, Victoria Island,
Lagos State, Nigeria
2, Ajose Adeogun Street, Victoria Island,
Lagos State, Nigeria
2, Ajose Adeogun Street, Victoria Island,
Lagos State, Nigeria
2, Ajose Adeogun Street, Victoria Island,
Lagos State, Nigeria
|
S/N |
NAME |
POSITION |
|
1. |
Mr. Jubril A. Tinubu |
Chairman / Group C.E.O |
|
2. |
Mr. Uche Dimiri |
Managing
Director / C.E.O |
|
3. |
Mrs. Olawunmi Asekun |
Executive
Director (Finance) |
|
4. |
Mr. Dando Ahire |
Chief
Operating Officer (Rigs) |
|
5. |
Olusola Falodun |
Fluids
Manager |
|
6. |
Sam Umeh (KSC) |
Drill
Bits and Drilling System Manager |
|
7. |
Shola Ismail |
Business
Development Manager |
Mr. Uche Dimiri - (Managing Director/CEO)
Mr. Dimiri obtained
a Bachelor's degree in Physics from the University of Lagos, Nigeria, in 1983,
where he was a ChevronTexaco Scholar. In 1987, he obtained a Master's degree in
Petroleum Engineering from the University of Port Harcourt, Nigeria.
Prior to joining
Oando in 2007, Mr. Uche Dimiri served as the World Wide Directional Drilling
Training Manager of Schlumberger D&M, England, and was responsible for
implementing strategic directions for World Wide Directional Drilling Training.
Uche has 23 years
of oil and gas industry experience, spanning engineering, measurements and
logging, drilling, directional drilling, training and development, accounts
management, operations and sales, and marketing with Schlumberger and Oando. He
commenced his career with Schlumberger, Nigeria where he was, at various times,
the Field Engineer, Drilling Engineer Directional Driller and Cell Manager
responsible for all services at the well site from 1988 to 1995. In 1995, he
served as a Field Service Manager and Location Manager in Warri, Delta State,
Nigeria.
Between 1998 and
2000, he served as a Product Champion, Rotary Steerable Systems at Schlumberger
D&M Headquarters in Houston, USA and moved to Schlumberger, Paris in 2000,
where he worked as the Training Development and Staffing Manager for Europe,
Africa and the then CIS. From 2003 to 2004 Mr. Dimiri served as the Operations
Manager for North West Africa and was based in Equatorial Guinea with
responsibility for operation in 6 countries.
In 2004, Mr. Dimiri
moved back to Nigeria with the Oil Field Services unit of Schlumberger as the
GeoMarket Accounts Manager for Shell as well as the Oil Field Services (OFS)
Manager in Warri, Delta State, Nigeria, where he provided account management
for all Schlumberger services to Shell, [Nigeria]. He then served as the
Marketing Manager for the Nigeria GeoMarket from 2004 to 2006.
Mrs. Olawunmi Asekun - (Executive Director, Finance)
Olawunmi Asekun holds
a Bachelors degree in Economics from the University of Lagos and is a Fellow of
the Chartered Association of Certified Accountants (FCCA) and an Associate
Member of the Institute of Chartered Accountants of Nigeria (ICAN).
Mr, Dondo Ahire - (Chief Operating Officers, Rigs)
Dondo's experience
spans across various areas of Petroleum Engineering, Drilling Engineering,
Internal Audits, and Safety. Throughout his career he has attended numerous
training events on Risk Management, Business, Planning and Leadership.
Olusola Falodun - (Fluids Manager)
Olusola's over
fifteen years well rounded career began in 1991, when he was employed by
Petrolog Nigeria Ltd, as a Mud Logging Engineer. In 1994, he was promoted to
Base Supervisor where he led a team of 25 field staff and oversaw contracts,
ensuring his team met management targets. In 1997, he moved to Baker-Hughes
Inteq. Nig. Ltd as the Lead Engineer in Field Services, from there Olusola went
to Halliburton in 1998 where he stayed until June 2006. He was promoted several
times during this period, from field engineer in 1998-1999, to senior field
engineer in 1999-2003; and finally Account Manager/Business Development from
2003 to 2006 before joining Oando Energy Services.
Olusola attended
several training programmes and has authored several papers including
"Optimal Horizontal Wellbore Placement Using New Drilling Technology in
the Niger Delta" which was delivered in South Africa at the World
Petroleum Congress, September 2005.
Sam Umeh (KSC) - (Drill Bits and Drilling
System Manager)
Shola Ismail - (Business Development
Manager)
Following an internship at
British Nuclear Fuels (BNFL) she has worked with Schlumberger Oilfield Services
in Aberdeen as a Field Engineer, ARM Investment Managers as a Financial Analyst
concentrating on energy related projects and more recently as a Sales &
Marketing Engineer for Transocean Incorporated's Gulf of Guinea
operations.
She holds a
Chemical Engineering with Environmental Protection Degree from Loughborough
University and a PhD in Cleaner Coal Technologies from the University of
Nottingham.
Oando Energy Services Limited
(OESL) was incorporated on 19th January, 2005 as a private limited liability
company under the Companies & Allied Matters Decree of 1990 with
Registration Number (RC: 614694) with Share Capital of 10,000,000.00. The
corporate office is located at Zenon House (7th Floor), 2, Ajose Adeogun
Street, Victoria Island, Lagos State, Nigeria.
Oando Energy
Services Ltd (a subsidiary of OANDO PLC) is a major player in the oil
and gas services industry distinguished for providing multiple value adding
services to upstream oil and gas companies locally and internationally. Oando
Energy Services Limited (OESL) is an indigenous Energy Services Company
with over 14 years experience in the provision of oilfield solutions in Nigeria.
The company is committed to providing high quality services to its clients and
ensures that its operations are carried out with strict adherence to world
standard safety procedures. It prides itself in offering services and solutions
that combine best practices, innovative technology, safety, high quality
support and environmentally sound well site operations that enable customers
increase efficiency, lower costs and increase asset value. OESL's strong
technical partnerships with reputable companies ensure it provides expertise
across its three business lines: Drilling & Completion Fluids Management,
Drill Bits & Engineering Services and the provision of Drilling Rigs.
The Company was
first incorporated as a privately owned company in 1994 under the name Ocean and Oil Services Limited, solely
for the purpose of trading in petroleum products. By 2004, Ocean and Oil
Services Limited in partnership with Halliburton commenced offering of Drilling
and Completion Fluids services, delivering supply chain services to the
following world class projects:
In January 2005,
the Company underwent re-organization and was rebranded to Oando Energy Services Limited. Later that year, OESL experienced
significant growth in business when it moved up to offering Drill Bits and
Engineering Services by virtue of Consignment Sales Distributor Agreement with
Halliburton's Security DBS to upstream operators in Nigeria. This agreement
allowed OESL to design well solutions to meet operators' requirements with the
support of a reputable technical partner.
Oando has invested
over US $250 million acquiring five Swamp Drilling Rigs namely Teamwork,
Respect, Integrity, Passion and Professionalism. To complement their drilling
rigs growth plan which involves acquiring two units every year till 2013, the
Company has acquired a large base at the highly strategic Trans- Amadi
Industrial Layout which is at the heart of oilfield operations in Port
Harcourt. The 26,000 sqm of land is to serve as the operational base for its
rigs business.
OESL currently has various
ongoing long term commitments with six International Oil Companies in Nigeria.
It is an integrated oilfield services company. In demonstration of their high
level of technical capabilities, the company is currently executing several
oilfield services contracts in Nigeria.
Oando Energy Services Limited, an oilfield
services company, provides integrated oil and gas upstream services in Nigeria.
It owns and operates oil drilling rigs. The company also provides rig drilling
services; drill bit solutions for various oil companies; measurement and
logging services while drilling; and directional drilling services. In
addition, it offers drilling and completion fluids, and engineering services
for the upstream industry. The company is based in Lagos and operates as a
subsidiary of Oando PLC.
During our visit to
the company on 14th February, 2012, we were denied access into the premises by
the security officers at the entrance gate on hearing our mission. All efforts
to speak with the company’s personnel proved abortive as none of them was
willing to cooperate.
Note: The Company increased its Share Capital from
5,000,000.00 to 10,000,000 on 2nd February, 2010 and also paid its Annual
Subscription from 2006 to 2009.
Conclusion: Based on available information and our
visit to the company, we are of the opinion that the company is engaged on a
legitimate business. As such, any business relationship with the company should
be mutually beneficial.
·
Raw Material
·
Fuel and Fuel Additives and
Lubricants and Anti Corrosive Materials
·
Fuels
·
Petroleum and Distillates
·
Drilling & Completion Fluids
Management
·
Drill Bits Engineering Services
& Drilling System
·
Rig Services
§
OES Teamwork
§
OES Respect
§
OES Integrity
§
OES Passion
§
OES Professionalism
OANDO
PLC (OANDO GROUP)
(5th,
7th-10th Floor), 2, Ajose Adeogun Street, Victoria Island, Lagos, Nigeria
Tel: 234-1-2702400 E-mail:
info@oandoplc.com Website: www.oandoplc.com
·
OANDO
MARKETING
(8th Floor), 2, Ajose Adeogun Street, Victoria
Island, Lagos State, Nigeria
Tel: 234-1-2601290-9, 2702400
E-mail:
info@oandoplc.com Website: www.oandoplc.com
·
OANDO
TRADING
Thistle
House, 4, Burnaby Street, Hamilton HM 11, Bermuda
Tel: 441
295 1443 Fax: 441 295 9246
·
OANDO
SUPPLY AND TRADING
(10th Floor), 2, Ajose Adeogun Street, Victoria
Island, Lagos State, Nigeria
Tel: 234-1-2704400 Fax: 234- 1 – 2696758
·
GASLINK
(5th Floor),
2, Ajose Adeogun Street, Victoria Island, Lagos State, Nigeria
Tel: 234-1-2702794-5 (2 Lines) Fax:
234- 1 – 2713403
E-mail:
info@gaslink.org Website: www.gaslink.org
·
OANDO
GAS & POWER
(5th Floor),
2, Ajose Adeogun Street, Victoria Island, Lagos State, Nigeria
Tel: 234-1-2702794-5 (2 Lines) Fax:
234- 1- 2713403
·
OANDO
EXPLORATION AND PRODUCTION
(5th Floor), 2, Ajose Adeogun Street, Victoria
Island, Lagos State, Nigeria
Tel: 234-1-2601293-5 (3 Lines),
4619882 Fax: 234-1-2625467
OANDO LTD
50 Curzon Street, W1J 7UW - First floor,
London
Tel: 44-207-297-4280-7 Fax:
44-207-499-5375
E-mail: info@oandolimited.co.uk
South Africa
Address
Mettle House, 32, Fricker Road, Illovo,
Johannesburg, South Africa
Tel: 011 268 6235
West African
Operations (Oando Benin Republic)
OIBP 1093, Recette Principale Cotonou
Tel: 299-313679
Oando Ghana
B35, Augostino Neto Road, Airport Residential Area, Accra, Ghana
Tel: 233-21-761196, 761520
Oando (Togo) S.A.
142, Rue 42, Enface De L’Hotel, Sakarawa Ablogame, Lome, Togo
Tel: 228-227-5-46,
227-04-22
ABUJA OFFICE AREA
Plot 252, Central Business
District, Opp. NNPC Towers,
Federal Capital Territory,
Abuja, FCT, Nigeria
Tel: 234-9-5235458-9 (2 Lines)
Plants/Terminals (Apapa Terminal)
Terminal Office,
Kayode Street, Marine
Beach, Apapa, Lagos State, Nigeria
Tel: 234-1-5870218
Lagos Aviation Terminal
Oando Aviation
Muritala Mohammed Local
Airport, opposite Aero Contractors, Ikeja, Lagos State, Nigeria
Tel: 234-1-4975888
Abuja Aviation Terminal
Oando Aviation
Behind Julius Berger Yard,
Nnamdi Azikwe International Airport, Abuja, FCT, Nigeria
Bitumen Plant
C/o
Oando Division Office
Reclamation Road, Port Harcourt,
Rivers State, Nigeria
Tel: 234-84-234516
Lubricant Blending Plant
Rido Village, off Kachia
Road, PMB 2110, Kaduna State, Nigeria
Tel: 234-62-516128, 236282
Onne Tank Terminal
Onne Terminal, Oando Plc
Onne-NPA (fit) Road, Onne
Oil and Gas Free Zone, Port Harcourt, Rivers State, Nigeria
Tel: 234-84-579940
·
Baker Hughes Company Limited
·
Halliburton Energy Services Inc.
·
Axxis Drilling Inc.
The supplier of choice for
products and services in the Upstream Oil and Gas Industry
To be the preferred
value-adding integrated oil field services provider to the Sub-Saharan Upstream
Oil Sector.
General Public, Group of
Companies, Corporate Organisations, Oil & Gas Majors etc.
* Quality of
Management: VERY GOOD
* Ethics &
Integrity: GOOD
* Ownership Structure: VERY GOOD
OANDO
ENERGY BALANCE SHEET 30TH SEPTEMBER 2011/2010
30/9/2011 30/9/2010
2011 2010
N’Million N’Million
Fixed Assets 163,182 137,375
Other Assets 60,117 47,297
223,299 185,672
Less: Current Liabilities (16,143) (15,142)
207,156 169,530
FINANCED BY:
Share Capital &
Reserves 99,730 77,720
Long Term Borrowings 95,583 84,485
Other Long Term Liabilities 11,843 7,345
207,156 169,530
CONSOLIDATED PROFIT AND LOSS ACCOUNT
30/9/2011 30/9/2010
2011 2010
N’Million N’Million
Turnover
392,304
277,524
Cost of Contract (342,665) (254,394)
Gross Profit 49,639 43,588
Operating Expenses (27,073) (23,130)
Other Operating Income
8,432 8,509
Earnings before Interest
& Tax 30,998 28,967
Profit before Taxation 19,367 13,948
Provision for Taxation (9,200) (6,384)
Profit after Taxation 10,167 7,654
The Company submitted third
(3) quarter results which underscores the leverage of the strength and uniqueness
of its diversified business model. The company’s turnover rose from N137.3
million in 2010 to N163.2 million in 2011.
These incremental changes
affected the profitability margin positively. Till date, the company has
financial strength to redeem its short term debt and continue in business.
The company anticipate a
robust financial year end as the government policy continue favouring its
operation by encouraging local contractors
In conclusion, the result
is satisfactory.
Subject is operating in an industry with very great potentials. With the
Local Content Initiative of the supervising agency, Nigerian
indigenous companies now have exclusive rights up-to 30% of all contracts
awarded within the oil & gas industry.
In cases where local expertise is lacking indigenous companies are
encouraged to enter into technical partnership with foreign firms. With this innovation, local indigenous
companies now have regular access to bids and can also benefit from the
transfer of technology and expertise from their foreign technical partners. The
Gas sector according to the recent World Bank estimate is worth $ 284 million
and it has the capacity for a 10% growth in the next three years. The current
low supply of LPG of about 0.5kg/h/yr from Nigeria to West African Sub- Region
as against the West African Average of 3.7kg/h/yr, gives room for more
investors and expertise.
This sector of the economy has great potentials for intending investors.
(Corruption, Money Laundering & Terrorism)
Public Notice from various sources including but not limited to: The
Courts, Nigerian Prison Service, Economic & Financial Crimes Commission
(EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food
& Drugs administration and Control (NAFDAC), Independent Corrupt Practices
and Other Related Offences Commission (ICPC) Etc.
No negative
information on subject from the above agencies as at the time of compiling this
report.
OFFICIAL REMARKS
Having
carried out all necessary verifications on subject, our investigations revealed
that Oando Energy Services Limited is
duly registered in Nigeria, with a Registered Address located at Zenon House (7th Floor), 2, Ajose Adeogun
Street, Victoria Island, Lagos State, Nigeria, while the corporate office is
located at the same address.
Subject is into genuine
business transactions. Subject is an
on-going concern.
All information contained
in the report is from secondary sources only.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.21 |
|
|
1 |
Rs.77.75 |
|
Euro |
1 |
Rs.64.58 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.