Oando chief Pade Durotoye told the Africa Independents Forum in London that the worst disruptions in Nigeria’s oil-producing Delta region are over, and production could reach 2.2 million barrels per day (bpd) by the end of June, following the return of the long-closed Forcados oilfield, Reuters reports.
“We think that the worst is behind us,” Durotoye said. “Before the end of June, we will have Forcados back, which would take us comfortably back to 2.2 million bpd.” Durotoye said “bold actions” by the government to address security in the area had helped, and that if it continued, Oando could boost output from 50,000 bpd to 150,000 bpd within 12-18 months. Still, Durotoye said concerns over more violence was leading investors to view the region with a lot of caution.
Durotoye also said Nigeria’s long-delayed Petroleum Industry Bill (PIB), which governs everything from the operations of state oil company NNPC to fiscal terms on oil exploration projects, was moving at a more assured pace. “We expect approval sometime in the second half of the year,” he said. Durotoye added that the PIB approval would “put some (investor) concerns to bed.”