‘Local oil firms’ll account for 30% production’

Getty Off Shore Oil Rig11 December 2013, Lagos – Indigenous oil companies will account for over 30 per cent of oil and gas production in Nigeria in the next five years, the Chief Executive officer, Atlantic Energy Company Limited, Kola Aluko, has said.

Aluko, in a paper titled: Onshore Niger Delta- A changing landscape, delivered at the African Oil Week Conference in Cape Town, South Africa, said the local companies have the capacity to execute 30 per cent of the businesses in the industry.

He said: ‘’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.

“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 per cent, and I believe we can have 30 per cent ofNigeria’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 said ageing infrastructure is one of the problems facing the sector, adding that it has affected the growth of the operators.

He said the company has formed a strategic alliance with the Nigerian Petroleum Development Company (NPDC)through which it has provided funding, technical and project management assistance to (NPDC).

He said the firm has invested over $500 million in the project, adding that the initiative has helped in strengthening the alliance with NPDC. He added that NPDC and its Joint Venture partners produce 60,000 barrel of crude oil per day.

– The Nation

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