Oando Bids to Increase Share Capital by 2.5 Billion

In an effort to reduce its dependence on debt and loans, Oando Plc is to increase its authorised share capital from N5 billion to N7.5 billion so as to make room for potential capital raising opportunities. The company wants to rely more on equity financing, hence the bid to increase its share capital to N7.5 billion.

The Board, who want to rely more on equity financing, will be seeking the approval of other  shareholders for the capital increase at an Extra-Ordinary General Meeting scheduled to hold in February 18, 2014.

Ecobank Capital, Orion Oil sign $500m deal

Ecobank Capital, the investment banking arm of Ecobank Group, leading pan-African bank, says it has successfully raised, on behalf of Orion Oil Limited, the sum of $500m to be utilised for the prepayment of crude oil cargos to be supplied by Société Nationale des Pétroles du Congo (The National Oil Company of the Republic of Congo).

According to a statement by the bank, the facility comprises a United States dollar-denominated $342m tranche and a XAF-denominated $158m tranche.

Vandalism: Power Generation Drops by 450MW

The Transmission Company of Nigeria has said that electricity generation in the country has dropped by 450 megawatts.

The firm said the drop on Saturday was due to vandalism of pipelines supplying gas to the Okpai Power Plant in Delta State.

The plant, it said, was shut down as a result of the reported vandalism, adding that the development would warrant power rationing across the country for four days.

Formalising Illegal Refineries

Illegal oil bunkering is not new in the Niger Delta. It is institutionalised. It is not a theft by a bunch of idle and hungry youths.  Rather, it is ‘an industry’ with syndicates that handle various aspects of the illegal oil bunkering business. Many of these syndicates lay claim to having top government officials as partners and initiators. Others claim they have top officials in the forces (police, army, navy, air force) as well.

It is an industry that has birthed a few other atrocious industries, such as:

GE, XD to Boost Africa’s Power Supply

In order to meet the growing demand for electricity in Africa, General Electric (GE) and XD Electric Group have joined hands together to offer transmission and distribution solutions to generate electricity.

According to a statement from GE, on Thursday, the arrangement would involve the combination of GE’s grid automation capabilities with XD Electric’s comprehensive portfolio of primary high-voltage equipment.

Dangote Signs $3.3b Refinery Deal

The Dangote Group on Wednesday signed a $3.3 billion loan agreement with a consortium of both international and local banks to establish the biggest petroleum oil refinery and petrochemical/fertilizer plants in Nigeria.

The projects, which will gulp $9 billion, will start with a $3.3 billion medium term deal involving local and foreign banks as financiers. The investment initiative is in form of a loan agreement for the construction of a petrochemical plant to be located at the Olokola Free Trade Zone in Ondo and Ogun states.

FG to source $150m Loan from IDB

The federal government to source for $150million loan from Islamic Development Bank (IDB) for expansion and upgrade of Nigeria’s weak electricity transmission network as part of possible funding sources for the activities of the Transmission Company of Nigeria (TCN) in its 2015 capital projects mix.

Power Supply Falls by 400MW

The Management of Transmission Company of Nigeria said power supply dropped by 400 megawatts yesterday, as the Agip Okpai Power Station Delta State was shut for scheduled annual maintenance for the next five days.

According to a report, the maintenance exercise will last till September 4, 2013. As a result of the development, maintenance is carried out yearly to ensure equipment availability as well as improved grid performance and stability.

Nigeria’s Oil Export under Pressure

Nigeria’s dependence on mono-economy, oil and gas, contributes over 90% of foreign earnings and over 80% of government revenue. This invariably means that any changes to the demand for these products will directly impact on the economy. A negative change that portends danger is real and looming as alternative energy sources are being explored. The competition against Nigeria’s oil and gas has become stiffer in the recent past with the exploration of the mineral resources in countries that used to depend on crude oil import from Nigeria.