Oando Acquires Two Swamp Rigs for Nigeria Operations

Oando Energy Services, a leading integrated oilfield services company that provides products and services to major upstream companies operating in Nigeria and a subsidiary of Oando PLC, has acquired two swamp rigs for upstream operations in the Niger-Delta area, as the company seeks to expand its service offerings to operating companies in Nigeria.

The rigs, Searex 6 and Searex 12, with a water depth rating of 25 feet and a drilling depth of 22,000 feet, cost the company over N11 Billion Naira and will be fully managed by Oando Energy Services, in partnership with Frazimex (a local company), with technical assistance provided by Transocean International, a global player in the Oil and Gas industry in Nigeria and beyond.

The Rigs, which will be fully operational by the end of the first quarter, 2008 after being upgraded, will significantly increase Nigeria's capacity to discover new oil reserves, while boosting her production capacity, as the Rigs have been operationally certified for 5 - 10 years.

The purchase of these rigs is the second phase of the company's active participation in oil service space. Over the next 5 years, Oando Energy Services intends to substantially increase its operational rigs in the country in a phased aggressive expansion plan and become a dominant player in the land and swamp rig space.

Commenting on the new acquisition, Mr. Wale Tinubu, Group Chief Executive, Oando PLC states; "The acquisition of Swamp Rigs by Oando Energy Services highlights our intent to become the number 1 oilfield services company in Nigeria. The Rigs once operational will significantly increase the company's financial contribution to the Oando Group, thereby considerably contributing to increased shareholder returns on diversification into the upstream local content. Our plan is to also invest additional $100 million in rigs acquisition during the year. This development further emphasizes our shift to become a fully integrated energy solutions provider. "

Negotiations have already commenced for hiring the equipment at excellent day rates to the major exploration companies in the country.

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