Nigerian multinational energy company, Oando Plc, has raised its crude oil production target to 100,000 barrels per day (bpd) by 2028, following its acquisition of Eni’s Nigerian Agip Oil Company (NAOC) earlier this year.
The disclosure, along with the company’s future expansion plans and role in Nigeria’s energy transition, was shared during an exclusive chat of the oil company’s Executive Director, Alex Irune, with Bloomberg correspondent, Jennifer Zabasajja, at the sidelines of the the African Energy Week: Invest in African Energies conference.
Speaking with the journalist, Irune highlighted the company’s plans to contribute to Nigeria’s oil production target of exceeding 2 million bpd as well as the growing role of indigenous firms in the sector, particularly as some international oil companies (IOCs) continue to divest from onshore and shallow water assets of the nation’s hydrocarbon resources industry.
He said: “In the space of 24 months, you’re going to see about 60%-70% [of Nigeria’s production] by indigenous players, just based on the transition of IOCs to the deep offshore and the acquisitions we have seen, whether it’s Seplat, our deal or the ongoing Renaissance deal.”
According to him, Oando is focused on maximizing the development of assets acquired through its NAOC deal, which increased its stake in OMLs 60, 61, 62 and 63 to 40% and nearly doubled its reserves to one billion barrels of oil equivalent.
This is even as Irune maintained that the company’s ownership in NAOC’s joint venture assets would also grow, including 40 oil and gas fields, 12 production stations, and key infrastructure including pipelines, processing plants and the Brass River Oil Terminal, adding that the company remains open to future mergers and acquisitions across the continent.
The Executive Director further clarified: “We’re always looking to do a deal. We stay where we have a comparative advantage, but we don’t rule out any markets. Nigeria is the first place we look – we have an immense amount of potential. As a leading energy company, we owe it to the country to reach that potential.”
Also, he discussed the role of Nigeria’s Petroleum Industry Act (PIA) in strengthening the investment case, particularly for gas in Nigeria and fostering industry synergies, noting that Oando-NAOC deal is the first M&A transaction following the PIA’s implementation and that Oando is leveraging the deal to boost oil and gas production, with a view to supporting Nigeria’s energy transition in the future.
Irune enthused: “We are very serious about energy provision. When you frame the energy journey, there must be renewable energy in that basket. In the immediate term, our focus is on producing every drop of oil we can to be able to fund that transition journey. We will use gas as a transition fuel – our assets are largely gas assets as a company, and Nigeria is largely a gas province as a country.”
