Oando, Oilserv awarded $727 million NNPC contract

The Nigerian National Petroleum Corporation (NNPC) has awarded the construction ofAjaokuta–Abuja portion (Lot 1) of the Ajaokuta-Kaduna-Kano Pipeline system to a consortium comprising Oando Plc, its midstream affiliate, Axxela Limited, and Oilserv Limited.

The $727 million Ajaokuta-Abuja Pipeline development is a 215km gas infrastructure with associated facilities such as Metering/Terminal Gas Station, Pigging Station, Block Valve Stations.

Oilserv Limited is an Oil & Gas (Pipelines & Facilities) Company that was incorporated in 1992 and commenced operations in 1995.

Oando Plc, in December 2016 announced a partial divestment from Oando Gas and Power Limited, to Glover Gas & Power B.V., a special purpose vehicle owned by Helios Investment Partners, for $115.8 million. The company was subsequently rebranded as Axxela.

Oando Plc shares closed at N9.60 in today’s trading session on the Nigerian Stock Exchange (NSE), up 1.05%.

A technical suspension that had been in place since October last year, was last week removed after a back and forth between the Nigerian Stock Exchange (NSE) and the Securities and Exchange Commission (SEC).