Oando alleges threat to $450m investment by oil price fall

Oando• Lays off 400 staff

THE fall in the price of crude oil at the international market has started taking its tolls on local oil companies in the country as Oando Energy Resources announced treat to its investment worth $450 million.

Managing Director of the company, Bamidele Badejo, who briefed the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB) Denzil Kentebe, disclosed that Oando’s three rigs –OES Integrity, OES Respect and OES Teamwork– located at the Free Trade Zone have been out of work. Kentebe, who noted that the company invested $450million in acquisition of four rigs in furtherance of the Nigerian Content Act and employed 600 persons when three of the rigs were working, expressed regret that the staff strength has been cut to 200 since the slide of oil prices and downturn in operations. He pleaded with the board to help the company secure business so they can recall their staff and make their investment worthwhile.

Badejo led the Nigerian content development general managers of the international producing companies and other stakeholders in the oil and gas industry to tour facilities of the oil and gas services centre at the free zone, Onne, Rivers State.

Kentebe explained that the purpose of the visit was to get the industry to appreciate the capacities of companies operating in the oil and gas service centre and Free Trade Zone, noting that the board insists on utilization of locally manufactured inputs by the oil and gas industry and many of such activities were carried out in the zone. He expressed delight that many of the companies were engaged in value addition activities and manufacturing of components, which, according to him, hold the key to real Nigerian content growth and employment creation. He encouraged companies operating in the zone to approach the board if they experience challenges, noting that the NCDMB is willing to support any company seeking to domicile its operations in the country.


Receive News Alerts on Whatsapp: +2348136370421

No Comments yet