Business
Oando Plans Expansion, Cost Reduction
One of Nigeria’s energy companies, Oando Plc, has pledged to increase its investment in the sub-sector to reduce high cost of operations.
The Chief Executive Officer, Oando, Mr. Wale Tinubu, said that the investments would focus primarily on infrastructure to meet commitments to shareholders and the energy needs of Nigeria.
He told newsmen after the company’s annual general meeting in Lagos that the investment would be in the medium and long-term.
“We will put substantial investments in building infrastructure to reduce the cost of imports, because as we know, the ports in Nigeria are shallow ports, you always have to bring in a ship to transfer the oil into lighter vessels and bring them into the ports, thus increasing your cost,” Tinubu said.
He said that the company’s priority in the downstream sector of the petroleum industry was to increase distribution of products and expand volume of Oando’s daily transactions.
“Our priority in the downstream is to actually intensify our distribution, expand into high margin volumes and in trading; what we want to do is to simply increase the amount of volume we bring into the country such that we can actually do it at a cheaper pricing by venture of the volume, which we have,” he said.