OANDO PLC READY TO LIST OANDO MARKETING LTD ON THE FLOOR OF NSE
Folks, if you are thinking of investing in marketing of petroleum products (i.e. downstream operation) in Nigeria, you have to have a re-think. Why did Tectono Business Review say so? It is because it involved a lot of money as capital and the profit margin is too small. If you access credit facility from the bank to invest in the business, the interest will eat up your profit and you still have overhead costs.

That is why so many companies that started the business are divesting from it. Dr. Jimoh Ibrahim’s Global Fleet Oil & Gas Ltd has divested from all the Energy branded petrol stations in Nigeria. Dr. Ibrahim, in his wisdom, decided to move the fund to a more profitable business. Global Fleet still owns the properties and the Energy brand but other companies are financing and managing them. Dr. Mike Adenuga’s Conoil Plc is more interested in oil exploration and production through its subsidiary, Conoil Producing Ltd. Conoil has moved 70% of its fund to the up-stream operations. This firm has acquired many oilfields in Nigeria. The founder of Tectono Group has had the opportunity of visiting Opuama and Obolowo oil fields.

Tectono Ventures Ltd oil and gas partners such as Kaniex Oil & Gas Ltd, Pact Universal Ltd and Matrix Energy Ltd are planning to divest from the downstream operations. In the petroleum sector, mid stream and up-stream operations brings more returns. It is obvious that the up-stream operations made Mrs. Folorunsho Alakija one of the richest women in the world.

Tectono Business Review has gathered, authoritatively, that Oando Plc is renewing moves to list its downstream subsidiary, Oando Marketing Limited (OML), as a separate entity on the Nigerian Stock Exchange (NSE). This follows the approval given by the shareholders of the company at the annual general meeting held in Lagos a few days ago.

To read the full write-up, click: http://tectono..com/2014/11/oando-plc-ready-to-list-oando-marketing.html