Oando Plc has disclosed plans to build a 400-megawatt power plant in Nigeria, after failing three times in bids to buy electricity utilities put up for sale in 2013.
Chief Executive Officer of Oando Gas & Power Ltd. Bolaji Osunsanya in an October 29 interview with Bloomberg News said work on the power plant will start by mid-2015 and last for about three years.
Nigeria had last year sold generation companies (Gencos) including Geregu power station, Ughelli power plant, Kainji hydro power station, the Egbin power station, Sapele power plant and Shiroro hydro power station.
The privatisation of assets in its power sector was undertaken by Nigeria to improve power supply in the country where power cuts are common. The current capacity of the country’s power generation of 3,100 megawatts is about half of the demand. The country presents a massive investment opportunity in the power sector, which Oando seeks to exploit.
Oando has been increasing investments in the country in recent times, concluding its $1.65 billion acquisition of ConocoPhillips’s Nigerian oil and gas assets in June following regulatory approval. The new power investment is expected to help strengthen the company’s position as a major player in the oil and gas sector.