Oando has just taken delivery of an additional rig named the "Constitution" purchased in July 2008 at a cost of $53.5 million. This brings to three the number of rigs in the company's fleet, underpinning its commitment to providing world-class oil field services in the Gulf of Guinea. The three rigs, including the Searex 12 and Searex 6, are for swamp operations.

Whilst two of the rigs are set to commence long term contracts, the third is in the final stages of its refurbishment programme and will be deployed in the near future.

Commenting on the acquisition, Mr. Uche Dimiri, Chief Executive Officer, Oando Energy Services, said, "The deployment of this rig will ensure that previously inaccessible reservoirs can now be explored for their oil and gas content, thereby increasing Nigeria's production and reserves. With the capacity to drill to depths in excess of 30,000 ft, at pressures of 15,000 psi and the ability to handle high temperatures, the Constitution is currently the first of its kind in Nigeria."

According to the Group Chief Executive of Oando, Mr. Wale Tinubu, "A key part of our diversification strategy from the downstream to a truly integrated company, includes $500 million of investment in our energy services business over five years. This latest acquisition makes our investment to date in excess of $150 million, with a further commitment to increase our rig fleet in this financial year. The diversified model assures Oando of steady earnings in a period of oil price volatility and maximises our shareholder value. Once again Oando has demonstrated its commitment to be the leading beacon in the oilfield services sector of Nigeria's local content policy.

Tags: Oando Exploration and Production Limited