Key Factors
- Oando Plc confirms three sabotage assaults on its pipelines in Bayelsa State, concentrating on key services together with the Tebidaba-Brass and Ogboinbiri/Obiobi pipelines.
- Nigeria’s Minister of Petroleum pledges swift authorities motion, stressing the safety of vital infrastructure after inspecting the harm attributable to pipeline assaults.
- Oando responds to the sabotage by deploying emergency groups and committing to fast repairs whereas investigating the complete extent of the harm.
Oando Plc, considered one of Nigeria’s main oil firms led by Wale Tinubu—an oil mogul and nephew of President Bola Ahmed Tinubu—has confirmed a collection of sabotage assaults on its pipelines in Bayelsa State, positioned within the oil-rich Niger Delta. The corporate mentioned three separate incidents have been recorded over the previous week.
In accordance with a press release launched late Friday, the assaults focused two main pipelines: the 18-inch Tebidaba-Brass crude oil pipeline within the Brass native authorities space and the 24-inch Ogboinbiri/Obiobi gasoline pipeline in Southern Ijaw. These services are actually a part of Oando’s portfolio following its current acquisition of Nigerian Agip Oil Firm (NAOC) from Italy’s Eni.
Minister vows motion over pipeline assault
The federal government responded swiftly. Final week, the Minister of State for Petroleum Sources (Oil), Senator Heineken Lokpobiri, visited the broken Tebidaba-Brass trunkline to evaluate the state of affairs firsthand. He was accompanied by army and civilian safety leaders, together with the sixteenth Brigade Commander of the Nigerian Military, in addition to representatives from native safety corporations like Darlon Oil and Fuel Ltd, Tenebo Safety Companies, and Tantita Safety Companies.
Talking in the course of the inspection, Lokpobiri described the assault as “unlucky and unacceptable,” stressing the necessity to rotect vital infrastructure. “This can be a essential financial asset of the federation,” he mentioned. “The federal government will do all the pieces doable to guard it. We are going to go after anybody behind this crime. We all know ourselves—we are going to discover them.”
Oando deploys groups after pipeline sabotage
These assaults come after Oando finalized its $783 million acquisition of NAOC from Eni, doubling its stake in key onshore oil leases from 20 to 40 p.c.
The deal gave Oando entry to a big portfolio of belongings, together with 40 found oil and gasoline fields (24 at the moment in manufacturing), 12 manufacturing stations, over 1,400 kilometers of pipelines, three gasoline processing vegetation, and the Brass River Oil Terminal. It additionally contains the Kwale-Okpai energy vegetation, which collectively have a capability of 960 megawatts.
In response to the sabotage, Oando mentioned it has deployed emergency groups to the affected websites and is working with authorities to conduct a joint investigation to evaluate the extent of the harm. Full-scale repairs will start as soon as the investigation is full, the corporate mentioned, including that it’s dedicated to restoring operations “as rapidly as doable.”
Pipeline sabotage and oil theft have lengthy plagued Nigeria’s power sector and are among the many key explanation why world oil majors like Shell, ExxonMobil, Whole, and Eni have pulled out of onshore and shallow-water operations. Indigenous gamers like Oando and Renaissance Africa Power Holdings have stepped in to fill the hole—however the problem now’s securing these belongings.
Oando expands in Caribbean, Africa
Underneath Wale Tinubu’s management, Oando has continued to develop throughout the power worth chain—from oil exploration and manufacturing to refining and buying and selling. Previously referred to as Unipetrol earlier than its 2003 rebrand, the corporate operates by way of Ocean and Oil Growth Companions, a three way partnership through which Tinubu holds a 66.67 p.c stake alongside Omamofe Boyo.
Oando can also be increasing internationally. Simply final month, it was chosen as the popular bidder to lease the Guaracara refinery in Pointe-à-Pierre, Trinidad and Tobago—marking a major step in its efforts to enter the Caribbean refining market. This follows its current entry into Angola’s upstream sector by way of the acquisition of Block KON 13.
Financially, Oando had a powerful 2024, with income leaping 45 p.c—from N2.85 trillion ($1.9 billion) in 2023 to N4.12 trillion ($2.76 billion). The expansion was pushed by larger crude output, rising gasoline costs, and favorable alternate charges. Nonetheless, rising prices weighed on income.
