News Column

Oando Lead Gainers On Acquisition of Conocophillips

July 31, 2014



Investors on the floor of the Nigerian Stock Exchange (NSE) yesterday swooped on the shares of Oando Plc as news hit the market that the company has completed the acquisition of ConocoPhillips.

At the close of trading yesterday, the stock went up by 9.7 per cent or N2.47 to close at N27.94 per share from N25.47 a share recorded last Friday. In all, investors traded a total of 43.14 million valued at N1.20 billion made in 804 deals.

The company had in a statement yesterday said: "Oando Energy Resources Inc. ('OER' or the 'Company') (TSX: OER), a company focused on oil and gas exploration and production in Nigeria, today announced the completion of its acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips (NYSE: COP) for a total cash consideration of $1.5 billion after customary adjustments plus a deferred consideration of US$33 million (the 'Transaction')."

It added: "The Transaction entails the acquisition of ConocoPhillips' Nigerian oil and gas businesses consisting of: Phillips Oil Company Nigeria Limited ('POCNL'), which holds a 20 per cent non-operating interest in Oil Mining Leases ('OMLs') 60, 61, 62, and 63 as well as related infrastructure and facilities in the Nigerian Agip Oil Company Limited ('NAOC') Joint Venture ('NAOC JV'). The other coventurers are the Nigerian National Petroleum Corporation ('NNPC') with a 60 per cent interest and NAOC (20% and operator)."

Meanwhile, the Nigerian Stock Market performance indicator, the ASI appreciated by 0.20 per cent in yesterday's trading to close at 42,369.02 points (this brings the year-to-date appreciation to 2.52%) relative to last Friday's trading session closing figure of 42,285.85 points.

The turnover by volume of transaction increased by 32.96 per cent relative to Friday's trading session closing figure. However, value of transaction decreased by 74.72 per cent. Major transaction volume was driven by activities in the, banking, insurance and conglomerates sectors.

At the end of yesterday's trading, 29 stocks appreciated in value (last Friday 28), 27 stocks depreciated in value (previous Friday 36) while 62 stocks remain unchanged making a total of 118 stocks that were actively transacted in yesterday's trading.


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Source: AllAfrica


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