Indigenous oil producers to account for 30% output in five years

202The co-Chief Executive Officer of Atlantic Energy, Mr. Scott Aitken, has stated the Nigerian independent companies would account for 30 per cent of the country’s daily production of crude oil in the next five years.

Speaking at the recent African Oil Week, one of the largest oil and gas conferences held in Cape Town, South Africa, Aitken stated that there were still hundreds of underdeveloped discoveries onshore Nigeria.

In his presentation on ‘Onshore Niger Delta – A changing Landscape,’ Aitken noted also that with the recent divestments of onshore assets by International Oil Companies (IOCs) operating in Nigeria, the acreages available to the Nigerian indigenous oil and gas companies have increased to eight billion barrels of crude oil and 46 trillion cubic feet of natural gas gross reserves.

Aitken highlighted the challenges facing the indigenous operators in the development of existing assets and increasing production.

He identified ageing infrastructure that have not been replaced or maintained properly as one of the challenges and suggested a detailed evaluation and phased infrastructure replacement /upgrade.

He also noted that host community/ stakeholder relationships and expectations were having a negative impact on production levels and suggested improved community engagement.

Aitken cited Atlantic Energy’s Strategic Alliance with the exploration arm of the Nigerian National Petroleum Corporation (NNPC), the Nigerian Petroleum Development Company (NPDC) wherein Atlantic Energy provides funding, technical and project management assistance to NPDC for designated assets as one of the best initiatives to increase indigenous output and boost the country’s daily production.

He disclosed that his organisation had made significant achievements through an increase in the reserves of the assets covered by the Strategic Alliance as well as new field development programmes.

According to him, Atlantic Energy has invested over $500 million further to the Strategic Alliance Agreement with NPDC, noting that NPDC and its Joint Venture partner have commenced a 60,000 barrel of oil per day flow line and flow station reinstatement.

In his remarks at the conference, the second co-chief executive officer of Atlantic Energy, Mr. Kola Aluko, affirmed Aitken’s presentation, saying that 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 97per cent of Nigeria’s oil and gas, now Nigerian companies are producing close to 10per cent and I believe we can have 30 per cent of Nigeria’s oil and gas production being produced by Nigerian companies within 5 years. The time is now for companies like Atlantic Energy and other indigenous companies to step up to the plate,” said Aluko.


[This Day]



Read the latest energy industry news and researched articles
for oil and gas, power generation, renewable energy, events and more...