BREAKING NEWS, Oil & Gas
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If the prevailing local participation in the oil and gas sector is sustained for the next five years, indigenous companies will account for more than 30 percent of Nigeria’s oil output
| By Maureen Chigbo | Dec. 23, 2013 @ 01:00 GMT
THE next five years may see indigenous companies accounting for more than 30 percent of oil and gas production in Nigeria. This is the reading of Kola Aluko, Atlantic Energy co-chief executive officer, CEO, said: According to him, “Nigerian companies like Atlantic Energy have pushed for increased local participation in the upstream sector. As recent as five years ago, six or seven international oil companies were producing over 97 percent of Nigeria’s oil and gas. Now Nigerian companies are producing close to 10 percent and I believe we can have 30 percent of Nigeria’s oil and gas production being produced by Nigerian companies within five years. The time is now for companies like Atlantic Energy and other indigenous companies to step up to the plate.” Aluko made this prediction at the African Oil Week, one of the largest oil and gas conferences on the African continent held in Cape Town, South Africa, November 25 to 29.
Supporting his view, Scott Aitken, also Atlantic Energy Co-CEO, in a presentation entiled: “Onshore Niger-Delta – A changing Landscape” explained there are 100’s of underdeveloped discoveries onshore Nigeria and with the recent divestments of onshore assets by international oil companies operating in Nigeria, it would increase the opportunities and access of Nigerian indigenous oil and gas companies to eight billion barrels of crude oil and 46 trillion cubic feet of natural gas gross reserves.
Aitken discussed the challenges to the development of existing assets and increasing production including ageing infrastructure some of which have not been replaced or maintained properly further to which he suggested a detailed evaluation and phased infrastructure replacement/upgrade. He also noted host community/stakeholder relationships and expectations were having a negative impact on production levels and suggested improved community engagement and update on needs assessment.
Aitken made an example of Atlantic Energy’s Strategic Alliance with the exploration arm of the Nigerian National Petroleum Corporation, NNPC, Nigerian Petroleum Development Company, NPDC, wherein Atlantic Energy provides funding, technical and project management assistance to NPDC for designated assets.
He also reported that Atlantic Energy has made significant achievements through an increase in the reserves of the assets covered by the Strategic Alliance as well as new field development programmes. He said that Atlantic Energy has invested more than $500 million further to the Strategic Alliance Agreement with NPDC, adding that NPDC and its Joint Venture partner have commenced a 60, 000 barrel of oil per day flow line and flow station reinstatement.
Atlantic Energy is a private upstream oil and gas group founded by Nigerian and international exploration and production executives with an extensive track record and experience in the Nigerian exploration and production sector. The company currently operates in Nigeria and is dedicated to its partners and communities through its enduring commitment sustainability programme. Atlantic Energy is a significant partner in a number of upstream oil and gas assets in Nigeria.
Tags: Atlantic Energy crude oil Kola Aluko Scott Aitken
