‘Aiteo has technical capacity to play in upstream’

Aiteo-Energy-Limited28 April 2014, Lagos – Preferred bidder for one of Shell’s divested four oil blocks, oil mining lease (OML) 29, Aiteo, has said it has the technical capacity to compete in the upstream sector.

An official of the firm, who spoke on condition of anonymity, said winning the oil block was an opportunity to place another indigenous integrated energy company on the global scene, especially as Shell said the bids were fair and transparent.

Shell and its partners, Total and Eni concluded bids for the divested 45 per cent equities (OMLs) 18, 24, 25, and 29, where Shell owned 30 per cent while Total and Eni owned 10 per cent and five per cent interest. Aiteo won bid for OML 29.

According to data, Aiteo has been playing in the downstream sector since 1999 when it started as Sigmund Company before changing its brand name to what it is.

Over the past 15 years, the company has proved to be one of the fastest growing energy companies in the country and has track record that showed its capacity in the oil and gas sector operation.

Therefore, to question its managerial capacity is indirectly saying that indigenous companies are incompetent to play globally, especially as all the bidders were given equal opportunity, so it is unnecessary, unfair and irresponsible for people to cast aspersion on the capability and experience of Aiteo, the operators said.

They said since every firm strives to diversify and grow, Aiteo having harnessed and mastered the downstream business, it is strategically moving to the upstream sector to consolidate its hold on the energy sector, it should be encouraged as Shell’s primary objective for the divestment is to empower local players and support local content initiative of the Federal Government.

Aiteo has a competent technical partner for the project.


– The Nation

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