Mohammed Shosanya
6 October 2008
Lagos — Channel Oil and Petroleum Limited has announced plans to raise N1 billion through the capital market to finance an expansion programme in the downstream sector of the Nigerian oil and gas industry.
The Chairman of the company, Professor Steve Azaiki, said over the weekend the the expected proceeds from the private placement would assist the company to play its role in the oil sector. Channel Oil is a new entrant into the nation's oil and gas sector.
He said with the fund raising exercise, the company will be well positioned to delve into new business areas such as trading of petroleum products, retail operations, lubricants, manufacture, oil service , gas distribution and ultimately scale up into the upstream sector.
Azaiki said the company has been engaged in the haulage of petroleum products since its incorporation. The enhanced share capital, he said, would enable the company
increase its trading volumes by jerking up its present fleet of trucks for distribution of fuel.
He said the Channel Oil was seriously considering the possibility of emerging a player in the business of importing Automative Gas Oil and other refined products directly from refineries abroad.
"The strategy of Channel Oil upon conclusion of 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", He said.
The Chief Executive Officer (CEO) of Channel Oil, Mr. Ebibomo Timitimi, said the company is working round the clock to actualize its planned diversification and business
expansion programme through a pragmatic implementation of a five-year strategic plan.
He said the proceeds from the private placement will be deployed to finance trading in petroleum products.
According to him, this line of business will span the life of the company because it offers very interesting returns which ultimately will provide the needed platform and capital for the execution of other phases of expansion plans.
"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", he said.
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