Oando Rig Marks 2 Years of Safe Operations

Lagos, Nigeria - Oando Energy Services Limited ("OESL"), Nigeria's leading indigenous operator of swamp drilling rigs services and a subsidiary of Oando PLC announced that it achieved a milestone of two years drilling operations without Loss Time Injury (LTI)   on OES Teamwork, one of its five rigs on Tuesday, 21 January, 2011.

LTI is an occurrence that results in fatality, permanent disability or time lost from work of one day, shift or more. This is a universal key performance indicator that reinforces the need for strict adherence to safety and environmental requirements in the course of operations. As evident in the last couple of years, the oil and gas operation is highly volatile, we are consciously reminded of these dangers and the need to ensure strict adherence to safety and environmental codes.

Commenting on the milestone achievement, Mr. Bandele Badejo, Chief Executive Officer, OESL said, "This commendable achievement is an indication to our commitment to ensuring that our people work safely.  Paramount to the success of any operation is the attitude of the team to safety and quality.  There are no short cuts to getting the job done, if it's not safe, we shut it down"  He further added that "While we are reassured that our Environmental, Health, Safety Security and Quality (EHSSQ) processes work, we are not resting on our laurels and continue to encourage a culture where safety is the primary focus through training and coaching."

OESL Teamwork rig in the past year has successfully drilled, completed and worked over wells in the course of the campaign, without any major incident. The rig is a 3000 HP swamp drilling barge equipped with 10,000 psi Blow Out Preventers (BOP) systems. It has an IDECO built mast and substructure with rated static hookload capacity of 1.5M lbs and capable of drilling up to 25,000 ft. The rig is equipped with three model 645E8 EMD diesel engines, two model T-1600 IDECO mud pump, three Derrick Linear Motion Shakers, two Hi-G- dryers, and Varco TDS-3 Top Drive.

In August, 2011 OES flagship rig Integrity also celebrated 2 years of without a Lost Time Incident. In addition, Oando PLC subsidiaries over the year have achieved Standard Organisation of Nigeria ISO 9001:2008 international certification for their exemplary quality and safety standards. They include, Oando Supply & Trading and Oando Exploration & Production, Oando Marketing PLC and Oando Gas and Power to bring the number of Oando entities with ISO 9001:2008 to four, reinforcing the organisation's commitment to proactive risk management system.

Oando's   vibrant policies and procedures cover product quality, safety, environment, health, security and emergency readiness, to ensure that all its operations meet international safety requirements. The company is very keen on safety and in an effort to inculcate (EHSSQ) culture amongst its employees, training, regulatory certifications and a "stop work" policy where employees on the rig are empowered to stop work if they observe an unsafe condition is imbibed. An annual "Safety Week" is also held companywide to deepen awareness and strengthen an incidence-free work life culture, which has become imperative following the company's expansion into the entire energy spectrum.

Oando Energy Services Limited (OESL) is a leading indigenous energy services

Note to Editors

Oando Energy Services Limited (OESL) is a leading indigenous energy services company that offers high quality oilfield services to Exploration &Production companies operating in Nigeria by deploying a suite of best practices, innovative technology, safety procedures, high quality support and environmentally sound well site operations, which increases efficiency, lowers operating costs and enhances asset value for its clients.

OESL commenced operations over 14 years ago but re-tooled to its current business outlook in 2005 when its services were structured along three major offerings namely:

• Drilling and Completion Fluids Services
• Drill Bits and Engineering Services
• Drilling Rigs

This enterprise refocusing was boosted through partnerships with leading global companies leading to its emergence as the oilfield services company of choice in its markets. In 2004, the company entered into a technical alliance with Halliburton's Baroid for Drilling Fluids. This partnership enabled OESL to deliver supply chain services to world class work program like the Erha and Agbami Field Development Projects. OESL subsequently signed a Consignment Sales Distributor Agreement with Halliburton's Drill Bit and Services division for the provision of Drill Bits.

In furtherance of its strategic growth plan, OESL commenced its third service line in 2007 when it acquired two swamp drilling rigs. It later added three swamp rigs to become the largest swamp rigs operator in Nigeria with five rigs. Some of these swamp rigs are currently drilling for major International Oil Companies.

Ends

For More information, please contact:

Meka Olowola

Head, Corporate Communications

Oando PLC

5th, 7th -10th Floors

2, Ajose Adeogun Street,

Victoria Island

Lagos, Nigeria