Atlantic Energy Drilling Concepts Nigeria Limited, an indigenous exploration and production company, said it is undergoing a holistic transformation aimed at placing it on a good pedestal to compete in the nation’s oil and gas industry. This followed the approval by the Presidency for the implementation of the company’s debt repayment plan, which before now has prevented it from operating optimally as an exploration and production company.
According to the company, the presidency decided to give it a chance by demanding to see its plan showing how it would settle its debts and resolve all contending issues between it and the Nigerian National Petroleum Corporation, NNPC, as well its creditors.
“The plan, drawn by the company and submitted a month ago was finally approved by the Presidency last week and referred to the Minister of state for Petroleum Resources, Ibe Kachikwu for implementation.
“Modalities for implementation of the approved plan and the investor’s involvement in the repayment plan have been the agenda for talks between the company and petroleum sector regulators,” it noted. It would be recalled that the company has had it rough in the past one year. There were allegations that its phenomenal success in securing the juicy Strategic Alliance Agreement with the Nigerian Production Development Company, NPDC, was in breach of industry rules.
Under the agreement, Atlantic Energy took charge of eight oil blocks. It was to provide funds, technical services, drill and sell crude oil.
To fund its mandate, it borrowed funds from financial institutions. Also, it was alleged that the company was unable to honour its obligations in the agreement with the regulatory authorities.
The company thanked President Buhari and Minister of State for Petroleum Resources Ibe Kachikwu for the opportunity to implement its repayment plan, a step which has given encouragement to indigenous players in the oil industry.