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So what can i say? Buy as soon as possible before you get shut out.
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"Concentration builds wealth, Diversification preserves it." - Warren Buffet
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OPR-Refining & Petrochemicals Company Limited (OPR-R&P) was incorporated as a subsidiary of Orient Petroleum Resources Plc (“OPR”) on 22nd July, 2005 for the purpose of establishing a refinery to process crude oil produced by OPR from its oil and gas concessions into refined petroleum products. OPR conceived the refinery project as a means of harnessing the vast but largely untapped mineral, agricultural and human resources, especially hydrocarbon deposits in Anambra State, for the industrialization of the area and improvement of the socio-economic well being of the people.
The establishment of the Orient Refinery was in direct response to the invitation of the Federal Government of Nigeria following government’s resolve in 2001 to seek alternatives to fuel importation. One of its decisions was to break the monopoly of the NNPC in the downstream petroleum industry by several measures, including throwing open the refining business to private entrepreneurs and privatizing the state owned refineries. Orient Petroleum Resources Plc (OPR) was one of 18 successful private companies, out of 65 applicants, to be granted the license to establish refineries in Nigeria in May 2002. In February 2004, OPR became the first Nigerian company to obtain a license from the Federal Government of Nigeria (FGN) to construct a private petroleum refinery in Nigeria. OPR was also granted two petroleum prospecting license blocks by the FGN, to provide a dependable source of crude oil feedstock to the Orient Refinery and thus provide long term security for the huge investment in the refinery. OPR, having completed successfully the Environmental Impact Assessment (EIA), has obtained EIA certification from the Federal Ministry of Environment to proceed with the construction of its refinery, again the first company in Nigeria to achieve this milestone. The scope of operation of OPR-R&P will cover the following core business areas: petroleum products refining, marketing, distribution and power generation. Shareholding structure Beneficial Owners No. of shares % Orient Petroleum Resources Plc 638,088,400.0 94.1 Anambra State & 21 Local Govts. 32,331,316.0 4.8 Nigerian citizens and other investors 7,580,284.0 1.1 Total 678,000,000.0 100.0 The Refinery Project The proposed Orient Refinery, with a proposed installed capacity size of 55,000 barrels per day, will be located at Nsugbe-Umuleri, on the eastern bank of Anambra River. The main source of feedstock supply to the Refinery will be the oil and gas fields in Oil Prospecting License (OPL) blocks 915 and 916. The Orient Refinery schedule commenced in year 2000 with the acquisition of land, surveying, Environmental Impact Assessment (EIA), acquisitions of oil blocks, granting of Approval to Construct to the Refinery and other preliminary activities which will culminate in the start-up and commencement of production by late 2008. The Orient refinery will produce gasoline, diesel, kerosene, jet fuel and LPG, which are scarce in the country and are currently being imported in large quantities from overseas. The location of the proposed Orient Refinery within 30 km of the oil and gas fields discovered in the relatively unexplored Anambra basin has given added impetus to the development of land-locked hydrocarbon reserves, by improving vastly the economics of developing these fields. Pre launch capex for the refinery to date is estimated at US$22,760,000 (N2, 958,800,000). This covers the costs relating to Front End Engineering Design (FEED) by Shaw Stone & Webster of the United States of America (US$3million), site preparation by Julius Berger Nigeria Plc (US$7.61 million) Feedstock Supply Assurance (US$10.5 million) and Engineering, Procurement, Construction and Commissioning (EPC) mobilization payment to Beijing Petrochemical Design Institute (BPDI), China (US$1.65m).
__________________
"Concentration builds wealth, Diversification preserves it." - Warren Buffet
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Yeah. The prospectus doesn't carry the closing date. A lady frm UBA global markets (Sara Duncan) confirmed that it'll be on till abt end of january.
I seem to like the board composition (Anyaoku, Ekwueme, Mbanefo), but it seems an all eastern affair. The forecast for 2009-20011 seem to be quite tite, PE ratio of 2 and earnings/div yield of 45%/25% respectively. |
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I think Orient Refinery makes sense. And the pple behind it are grade 1(Anyaoku, Ekwueme, Mbanefo), .Not the kind of pple to mess up. I think by putting it in anambra, they are trying to develop their state and any investor can be assured that the usual South-south risks won't come up.
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“The intelligent investor is a realist who sells to optimists and buys from pessimists.”- Ben Graham |
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Yeah I concur. You see, most guys dont even go thru d prospectus b4 concluding on the if an offer is good or otherwise. There's no doubt that this offer could be a potential money spinner to investors ready to take full advantage of the opportunities it provide
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__________________
"Concentration builds wealth, Diversification preserves it." - Warren Buffet
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Personally for me (even though i consider myself a long term Investor), i always like my investments to be liquid, so i think i will jump in whenever they decide to list although if i have spare cash, i might pick up some units |
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Well, d offer is still very much on. Actually there's no closing date on the form and per discussion wt uba global market contact the offer is on 1st come 1st serve basis.
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Question: Why did this PP raise only 5% of the target? Why are institutional investors not swooping on this? Quote:
In January 2005, a prospect evaluation was done for OPL 915; the engineering report from that work is essential for one to evaluate the prospect of the company. Orient does not have the technology to operate an OPL; who will they be partnering with? This is a long-haul investment. The UBA Global Markets report is very misleading in making projections for 2009. Unless Orient gets foreign partners, the refinery will not fly. . |
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But 915 and 916 arent the only feedstock supply options: Quote:
And finally, UBAGM isnt trying to mislead anybody. They stated quite clearly that about 85% of the needed capital is being sourced from China EximBank on which interest will be paid. It is based on the success of this offer (which will go a long way in determining whether the loan goes through or not) that those projections are made.
__________________
"Concentration builds wealth, Diversification preserves it." - Warren Buffet
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The last paragraph of page 11 reads:
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To suppose that these plans and projects can be completed in time for a N45 EPS for FY 2009 is quite laughable. . |
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The current price per litre of petrol in Nigeria is highly subsidised. How will they be able to make profit if they are to sell their product in the local market? Personally, I am not too keen.
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Link Update on Orient....The NEWS - News
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__________________
"Concentration builds wealth, Diversification preserves it." - Warren Buffet
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