Oando Energy Services (OES)

Feb 07, 2008

Press Briefing

RefiningGas (Pipeline Transmission of

Natural Gas)

Supply &

Trading

Exploration &

Production

Energy

Services

…exploiting synergies between subsidiaries

PowerMarketing

• No. 1

marketer of

Petroleum

Products

• A Significant

Opportunity

for Oando

• Offering

Product service

lines through

strategic

alliances (e.g.

Baroid,

Halliburton)

• Evolving into

a leading

player in the

upstream

• Seeking

opportunities

to ensure

product

availability

• Dominant

local player

• Expansion into

other West

African

Markets

• The dominant

player in gas

supply –

powering

Nigeria's

manufacturing

base

Oando…the future

Oando Energy Services in 2008

Rigs

Drilling

Systems

Startup /

New Business

Drilling

Fluids

Realign &

Migrate to

Services

Drill Bits

Sustain &

Grow

Drilling Rigs

Startup /

New Business

- Repositioning existing portfolio of services to leverage opportunity

We are positioning ourselves as Nigeria’s Largest

Integrated energy services company exploiting synergies

between Product Service Lines

Oando Energy Services

Drilling Fluids

Contracts

Chevron

Esso

Agip

SNEPCO

Contracts

On - going

Contracts

Esso

Agip

SNEPCO

TOTAL

SPDC

PANOCEAN

Drilling BitsDrilling Rigs

Strategic Alliances with Multinationals

• Drilling Fluids - Halliburton (Baroid)

• Drill Bits - Halliburton (Security DBS)

• Drilling Rigs - TransOcean/Frazimex

Deliverables

•Competency

Access to technology

Competitiveness

Oando Energy Services (OES)DRILLING RIGS

Feb 07, 2008

OVERVIEW

Our overall vision and objectives

• The premier Indigenous Drilling Company in the Gulf

of Guinea Vision

Positioning • Dominant indigenous drilling company in swamp and

shallow off-shore reputed for

– Well maintained rigs

– High EHSQ, and Performance standards

– Good management systems

– Well trained personnel

– Offering broad range of integrated services

POSITIONING

• Fully Indigenous company operating on World Class standards.

• Acquired two swamp Drilling and Workover Rigs namely Searex

VI, and Searex XII at over N12bn..

• Rigs rehabilitation/upgrade nearing completion.

• Sourced competent and experienced personnel to manage the

OES Drilling business, and those that will operate the rigs.

• Set up offices for OES Rigs business in PHC. Acquired a plot of

land in the strategic Trans Amadi area of Port Harcourt for OES

permanent operating base/offices.

• Executed Technical support agreements to ensure smooth

operations.

• Finalizing discussions towards executing contracts for hire of

the drilling rigs.

Rig Statistics

Searex - 6 Searex - 12

Year Re-built 1993 1992

Acquisition Date July 2007 July 2007

Refurbishment 1st Quarter 2008 1st Quarter 2008

Rated Depth 22,000 ft (approx

5 miles)

22,000 ft (approx

5 miles)

Accommodation 100 Persons 100 Persons

Water Depth (10 – 25) ft (10 – 25) ft

Power Rating 2,000 HP 2,000 HP

Moving Forward

• Start Drilling in QTR 2, 2008

• Attract and retain Quality staff

• Grow the business rapidly - Invest $100m in rigs

acquisition in 2008 alone. Diversify rig type.

• Market OES Drilling through high operational efficiency

and EHSQ performance.

• Build a WORLD CLASS COMPANY.

Challenges

– Sourcing experienced personnel to man the rigs in

a severely constrained supply market due to:

Flight of Expats.

Nigerians shifting to Saudi Aramco,

Malaysia, Canada etc.

– Insecurity leading to violent crimes, kidnapping,

and unproductive time.

2008 and the future

The investment climate is favorable and consequently Oando Energy

Services plans to

• Continue to grow existing Product Service Lines Profitably

• Invest an additional sum of 100 M$ on Rigs in 2008

• Become the dominant player in the land and Swamp business.

Year on Year Growth 2008 / 2007

58%

43%

0%

30%

60%

Drill Fluids Dlg Bits

Ye

ar

on

Ye

ar

Gro

wth

Projected RIGS Revenue Growth in (M$)

46

115.6

175.2

234.8

297.1

0

350

Y-2008 Y-2009 Y-2010 Y-2011 Y-2012

Year

Re

v (

Millio

n $

)

Thank You

www.oandoplc.com