FG set to boost oil production to 2 million bpd
Senator Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), says Oando’s acquisition of Eni’s Subsidiary, Nigerian Agip Oil Company (NAOC) will ramp up crude oil production to two million barrels per day (bpd).
The Minister said the Oando company has already increased production to more than 30,000 bpd sequel to the successful acquisition of the NAOC.
Lokpobiri stated this on Thursday in Abuja during a meeting with a delegation from Oando Energy Resources Nigeria Ltd., led by its Managing Director, Dr Ainojie Irune.
Oando Plc., one of the Nigeria’s leading indigenous energy solutions providers in Aug., 2024, successfully completed acquisition of Eni’s subsidiary, NAOC for 783 million dollars.
Lokpobiri said with necessary support, the Oando would increase production that would substantially help the Federal Government’s desire to get into two million bpd by the end of 2024.
“I will ensure that I do everything humanly possible to create the best environment for Oando and other companies operating in the Niger Delta region to increase production, which we seriously need now. Our target is to hit at least two million barrels production by December,” he said.
Lokpobiri, who disclosed that 80 per cent of the acquired assets is in Bayelsa, said he has spoken to the state government and relevant stakeholders on collaboration with Oando to boost production from those assets.
He said that enormous local capacity had been grown in indigenous companies such as Oando, Seplat and First E&P, among others tasked them to sustain the momentum to be in same level with the so-called IOCs.
“And I’ve also been asked at the global stage whether the indigenous companies have capacity to be able to sustain the running of these companies. What is going to be the future of Nigeria? I said we have no problem at all, that we have grown in enormous capacity, and the companies that are seeking to acquire these IOCs will run them professionally and profitably,” he said.
On the upstream, midstream, and downstream sectors of the economy, the minister urged the entire world to seize the opportunity of Nigeria’s readiness for business and invest.
Earlier, Irune said the visit was to intimate the minister on the concluded transaction and highlight some of the landmarks it had hit in just achieving the milestone. He assured that it would improve the assets management; tackle insecurity and local problems of host communities, and contribute to the overall production ambitions of the country.
Irune recalled that Oando started off as a downstream company, selling fuel oil in tankers effectively, and built the largest downstream interest with over 500 fuel stations nationwide.
He said it proceeded to build the largest midstream company, Oando Gas and Power, and stepped into the upstream, where it became first indigenous company to acquire two IOCs.
“It has first transaction in 2014 with ConocoPhillips, with 20 per cent interest in the NAOC Joint Venture (JV) while ENI’s 20 per cent stake in the NAOC JV made it 40 per cent holders in the JV, with the NNPC Ltd. holding 60 per cent.
“It sought to put the best of local content forward to inspire Nigerians to show that Nigerians can do it. We can breed and create our own IOCs that would have sizable balance sheets, acreages across the world, and portfolios that can compete with the likes of the Shell’s and Chevron,” he said.
Irune thanked the minister for his steadfast support and commitment to the growth of not just indigenous companies within the oil and gas industry, but the industry as a whole.
