| Stock & Analyst Updates |     6413 VIEWS  |
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Thursday, April 19, 2018 /12:55PM
/NSE
A two party consortium consisting of Oando PLC (“Oando”),
in conjunction with its midstream affiliate, Axxela Limited (“Axxela”)
(formerly known as Oando Gas & Power) and Oilserv Limited, has been awarded
the Engineering, Procurement, Construction (EPC) mandate for the Ajaokuta -
Abuja portion (Lot 1) of the Ajaokuta-Kaduna- Kano Pipeline system (the “AKK
Pipeline”) by the Nigerian National Petroleum Corporation UNNPCW.
The contract award follows an extensive due diligence
process conducted by the NNPC following a submission by Oando and Oilserv in
2013 in response to an Expression of Interest for a contractor-financed EPC
development of the AKK Pipeline Project. Oando’s Group Chief Executive and
Axxela Chairman, Jubril Adewale Tinubu, said: Our long- standing
achievements and aspirations in the gas and power sector are testament to our
desire to continuously provide innovative and integrated energy solutions
across sub-Saharan Africa.
The award of the Ajaokuta - Abuja portion of the AKK
Pipeline Project also underscores our position as the partner of choice for
investors, regulators, and key stakeholders as gas continues to gain prominence
as a key driver for the region’s economic empowerment.” The US$727million
Ajaokuta-Abuja Pipeline development is a 215km gas infrastructure with
associated facilities such as Metering/Terminal Gas Station, Pigging Station,
Block Valve Stations etc. The development of the AKK grid is a manifestation of
the Gas Infrastructure Blueprint in the Nigerian Gas Master Plan, which seeks
to extend the existing gas transmission network and achieve connectivity
between the East (gas reserves) and the North (demand centres); serve new
customers in the Northern regions; and bridge the shortfall in the Western
region.
Commenting on the contract award, Axxela CEO, Bolaji
Osunsanya, said: “As forerunners in the sector, we remain actively committed to
the long term realisation of the Nigerian Gas Master Plan. The development of
critical gas pipeline infrastructure and a far-reaching national grid remains
pivotal to the country’s industrialization and economic empowerment.
Consequently, the implementation of the AKK Pipeline Project will enable
power-starved communities across the northern region have greater access to
electricity, while providing stranded commercial and industrial customers with
a cleaner and more efficient source of energy.”
In a bid to aggressively expand its operational
footprint and further create value-adding opportunities in the gas and power
space, Oando divested a portion of its erstwhile midstream vehicle, Oando Gas
& Power to Helios Investment Partners LLP (“Helios”), a premier Africa-
focused private investment firm. Oando Gas & Power subsequently rebranded
as Axxela.
Axxela remains the pioneer developer of Nigeria’s
foremost natural gas distribution network and the largest private sector gas
distributor. The company is also extending its gas advantage to identified
customers in neighbouring Benin, Togo, and Ghana with a target to deliver over
100million standard cubic feet per day (“mmscf/d”) via its newly acquired
shipper status on the West Africa Gas Pipeline to fuel power plants, commercial
entities and residential homes.
According to NNPC, awards for the three lots on the
AKK Pipeline Project were made to three selected consortia to facilitate a
timely delivery of the gas network. 
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