Last month, Forte Oil announced it was in talks to acquire a downstream assets from a “downstream company”. This got the rumour mill spinning as many assumed the seller was Oando on the back of their already known intention to sell part or all of their downstream assets. Oando is surely not a “downstream company” but the fact that it intends to sell has fuelled this imminent Forte Oil deal to them.
Based on this, Oando decided to issue this press release.
Our attention has been drawn to misleading publications in the press which infer that Oando
Plc. has divested all of its downstream assets to certain major marketers of petroleum products in Nigeria.In light of the above, we wish to provide clarity regarding these speculations:
- We are firmly committed to creating continued value for our shareholders through increased investment in the higher margin Upstream, to spur long-term growth for the future of the company. The execution of this has most recently been seen in the successful acquisition of ConocoPhillips Nigerian business
- As a company we have not divested, partially or wholly, our downstream assets as speculated by these publications
- We procured shareholder’s approval over two years ago for the partial divestment of our downstream assets. This was to enable the Oando Group unlock value and inject liquidity which would enable us explore the best growth strategy
- Notwithstanding the above, this partial divestment is yet to be consummated.
We hope the above addresses any concerns on the proposed divestment.
Yours faithfully,
For: Oando Marketing
Abayomi Awobokun
Chief Executive Officer
Good.