Channel Oil and Petroleum Limited

[hispy99]

Channel Oil seeks N1bn for expansion
By Clara Nwachukwu
Published: Thursday, 9 Oct 2008

Channel Oil and Petroleum Limited has concluded plans to raise N1bn to finance its expansion programme in the downstream sector of Nigeria’s oil and gas industry.

The company hopes to raise the sum through private placement, which would enable it achieve its goals as a leading player in the sector.

The Chairman, Channel Oil, Prof. Steve Azaiki, explained in Lagos on Tuesday that the money would be utilised to reposition the company to become a top player in the nation’s energy sector within the next couple of years.

He said the fund would assist the company to expand capacity to new businesses such as fuel trading, retail operations, lubricants manufacture, oil service, gas distribution and ultimately scale up into the upstream sector.

Azaiki, who was a former secretary to the Bayelsa State Government, explained that the company had been engaged in the haulage of petroleum products since its incorporation.

Consequently, he said the injection of fresh funds into the company would enable it increase trading volumes as well as acquire fleet of trucks for products distribution.

He further said the company was also working on importing refined products particularly the Automotive Gas Oil (diesel) directly from refineries abroad to reduce the incidence of shortages.

According to him, “The strategy of Channel Oil upon concluding the capitalisation process is also to leverage its relationships, knowledge-base and robust operating capital, to increase trading volume for refined petroleum products, develop core infrastructure framework, build superior brand asset/name recognition and penetrate other niche areas of the oil and gas industry.”

The Chief Executive Officer, Channel Oil, Mr. Ebibomo Timitimi, disclosed that the company’s recapitalisation drive was part of the overall diversification and business expansion programme being executed under a five-year strategic plan.

He said the proceeds from the private placement would be deployed to finance the trading in petroleum products.

He noted that products trading would remain a core business for the company, as it offered very interesting returns, which would provide the needed platform and capital for the execution of other phases of the expansion programme.

He added that part of the plan was to eventually sell the company to the public, saying, “The company’s goal over the next five years will be to transform into a publicly-quoted, professionally-managed business entity with the ability to compete and succeed in the market place.

“Management will seek to acquire assets at competitive prices, create a solid operating platform and run the company in a way that it can achieve high returns on assets vis-à-vis similar competing companies in the industry.”

Stakeholders have expressed the optimism that Channel Oil’s strategic plans would create additional value for investors, adding that these and its performance over the years would facilitate its drive towards establishing distribution channels and network across the country

[ayemco]

Every Dick and Harry for PP!! I hope when I float my own you will open a Thread for me!!

[hispy99]

Originally Posted by ayemco

Every Dick and Harry for PP!! I hope when I float my own you will open a Thread for me!!

yes o...Ayemco Oil and Gas Plc...or you prefer Ayemco Building Society?

[ayemco]

Originally Posted by hispy99

yes o...Ayemco Oil and Gas Plc...or you prefer Ayemco Building Society?

Ahhh... Na Ayemco Bank PLC. Who no wan chop better thing.

[hispy99]

Channel Oil to construct 50,000mt fuel depot
By Yetunde Ebosele

AS part of its ongoing expansion programmes in the downstream sector of the nation's oil and gas industry, Channel Oil and Petroleum Limited has concluded plans to construct a mega fuel depot in Port Harcourt, Rivers State.

The Managing Director of the company, Ebibomo Timitimi, said the proposed tank farm would include a jetty with 10 metres depth at low water level.

The depot, according to him, is designed to store automotive gas oil (AGO), dual purpose kerosene (DPK) and base oil.

"The tank farm scheduled for construction in the second year of operations of our five-year growth strategy will be very modern and equipped with high power pumps from the berthing areas for ease of loading", Timitimi said.

According to him, the commissioning of the depot will assist the company to strengthen its business activities in fuel importation as a result of rising demand for fuel above the supply capacity of the nation's refineries.

Besides, he revealed that vessels of other marketing companies would also be allowed to berth at the jetty and discharge fuel into the depot under a special arrangement in order to eliminate congestion and payment of demurrage at Lagos ports, which are often responsible for high cost of marketing petroleum products in the country.

"Our depot will assist marketers to have access to fuel regularly for their filling stations especially dealers from the East and North so that they will be able to sell fuel at official price needed to attract more motorists and increase their turnovers," he said.

He noted that the company would seek to maintain the depot so as to have large stock of products and distribute them with its own fleet of trucks. He affirmed that the success recorded by the company in its operations in the downstream sub-sector contributed to the participation of high profile Nigerians in the ongoing private placement.

"The strategy of Channel Oil is to leverage its relationships, knowledge-base and robust operating capital to increase trading volume, for refined petroleum products, develop core infrastructure framework, superior brand asset recognition and penetrate niche areas of the oil and gas industry", he said.

Its Chairman, Prof. Steve Azaiki, said the company is diversifying into construction of jetty and depot as a result of favourable market condition for petroleum products with dismal refining capacity in the face of soaring demand.

He added that the provision of a standard jetty by the company would also encourage foreign oil traders to patronise Nigeria to take advantage of improvement recorded in the nation's economic activities despite global financial crisis.

"Aspirations of the Federal Government to raise the nation's capacity of crude oil reserves to 40 billion barrels (bbls) an production capacity of 4 million barrels per day (mbpd) shows that demand for petroleum products by oil firms operating in the upstream sub-sector will continue to increase and boost investment in fuel depot while favourable reform policies by the Federal Government and frequent vandalism of pipelines indicates that investment in depot will continue to generate high returns", Azaiki said.

The company had launched a private placement of N1 billion in September 2008 to actualise its planned diversification and business expansion programme through the formulation of a five-year growth strategy.