19 Feb 2016 – [LAG:OANDO; JSE:OAO], a Nigerian oil and gas exploration and production firm, has hired Argentil to advise on majority stake sales of several of its midstream assets, two sources briefed on the situation said.
Oando is looking to sell 75% stakes of Oando Gas & Power Ltd and its subsidiaries Gas Link Nigeria, Central Horizon Gas Company and Gas Network Services, the first source said.
The assets will be sold with sales contracts in place, which include 175 commercial and industrial customers, supplying 70 MMscf/day of gas, the first source said.
The company is embarking on these disposals to raise capital and increase its focus on upstream activities, the first source added.
The sale process was launched in January, and is expected to be completed within six months, the first source said.
Bidders are likely to be Nigerian companies rather than international oil and gas firms, the second source said.
Oando’s market capitalisation is NGN 45.5bn (GBP 160m). In November it announced it had a net debt position of USD 500m.
Oando supplies natural gas via 120km high pressure transmission pipelines and gas processing facilities in Lagos State. Central Horizon Gas Company (CHGC) is the special purpose vehicle (SPV) set up to rehabilitate and expand the distribution of natural gas in the Greater Port Harcourt Area, Rivers State located in South-South region of Nigeria.
Gaslink Nigeria Limited is a subsidiary under which Oando promotes the distribution and utilization of natural gas in the greater Lagos area. Gas Network Services Limited (GNSL) is the operator of a Compressed Natural Gas (CNG) facility, and is situated at Ilasamaja on Oshodi-Apapa Express way in Lagos State, according to the company’s website.
Oando and Argentil did not respond to a request for comment.
by Katie McQue