Joint Chief Executive Officers of one of Nigeria’s leading oil companies Atlantic Energy are hopeful indigenous companies will be responsible for producing 30 percent of the country’s oil in five years’ time.
Kola Aluko and Scott Aitken said their company has been pushing hard for increased local participation in the upstream market, while attending the African Oil Week conference recently held in Cape Town, South Africa.
Aluko said: “Nigerian companies like Atlantic Energy have pushed for increased local participation in the upstream sector.
“As recent as five years ago, six to seven international oil companies were producing over 97 percent of Nigeria’s oil and gas, now Nigerian companies are producing close to 10 percent.
“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.”
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) where in Atlantic Energy provides funding, technical and project management assistance to NPDC for designated assets.
He also noted that Atlantic Energy has invested more than $500 million further to the Strategic Alliance Agreement with NPDC and also noted that NPDC and its Joint Venture partner have commenced a 60,000 barrel of oil a day flow line and flow station reinstatement.
During his address, Aiken explained there are hundreds of underdeveloped discoveries onshore Nigeria and with the recent divestments of onshore assets by International Oil Companies operating in Nigeria, this 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.
He 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 needs assessment.
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.