Oando has moved into the uPstream Oil & Gas industry with at least 1 block. Capital investment in such ventures requeres billions of dollars and this venture is somewhat top on Oando's priority list.
Years back Kupolokun (NNPC GMD) put a policy in place that all petroleum product improter should have an asset base of ($2m - or some high figure of the sort). Naturally , this affected a lot of indiginous players including the company I worked for back in 2003. The major players remained... Mobil, shell, Vitol, Hyson, Trafigura etc.
With access to such a lucritive business (which was a major part of their business protfolio, profits dwindled). This affected teh company since its IPO.
Even running to the JSE did not prove as worthwhile as it should have been.
One would also recall that some key staff left, including the new MD of Eterna. With a management reshuffle, there were holes in the company.
Jite O (the quiet one of the trio). Most considered him the background brains of the business. sources say that a lot of monet is spent on recruiting ex-harvard expats in the management of the business, which comes with a high price tag.
Going back to their focus in the upstream, which is a Capital intensive / long term investment, expect Oando's price to lay low for a while, at least till they strike oil. Than, and most likely, only then will you see prices soar.
Oando is not a short term gig but a medium/long term investment. Thsi investment is for your children rather than you.
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