…output to hit 500,000bpd

By Udeme Akpan

Indigenous companies in Nigeria have concluded plans to increase oil production by 60 per cent at end 2018. This is expected to increase their collective output from the current 313, 602 barrels per day (bpd) to 500,000 bpd in 2018.

This will also enable them to increase their contribution to the nation’s daily output from 10 per cent to 20 per cent, leaving 80 per cent to the International Oil Companies, IOCs, that currently produce 90 per cent of Nigeria’s total output.

Current output breakdown showed that Aiteo, Eroton, NPDC, Oriental, Seplat produce 77,000 barrels per day, bpd 54,000 bpd, 42,654 bpd, 24, 000bpd, and 21,881bpd respectively.

Newcross, Midwestern, Belemaoil, Amni, Conoil, Niger Delta, Walter Smith and Erin Energy produce 20,000 bpd, 13,000 bpd, 12,000 bpd, 11, 000 bpd, 9, 130 bpd, 7,000 bpd, 5, 837 bpd and 5,000 bpd.

Others – Energia, Moni Pulo, Prime Energy, Platform and Pillar Oil – also produce 4,500 bpd, 3, 200 bpd, I, 200 bpd, 1, 100 bpd and 1, 100 bpd respectively.

Investigations showed that the companies have intensified efforts in developing their assets to produce more in future.

The Managing Director of Energia Limited, Mr. Felix Amieyeofori indicated in an exclusive interview that Energia started as a consortium of leading Nigerian service and technology providers who came together with little cash but with great personnel, equipment and services to work, thus culminating to the production of first oil.

“Energia currently has the capacity to produce 7, 000 bpd but is looking forward to producing 15, 000 bpd in near future, hopefully as we resume full production and injection through Forcados terminal. Generally, we would want to participate in bidding for new oil blocks once the bid is out. We would want to grow,”~ he stated.

The Managing Director of the Niger Delta Petroleum Company Plc, Dr. Layi Fatona, disclosed that the company is currently producing 7, 000 bpd.

He said that the company has done more, considering that it produces nearly 45mm Scf/d gas from the Ogbele Field, and about 10,000 bpd and 260 mm Scf/d of gas from the OML-34 JV.

Fatona indicated that in the short term, the company plans to remain relevant in a nimble way, within the Nigerian exploration and production patch.

He disclosed that as for the medium term, the company will like to become an attractive investment vehicle, which is able to grow with steady injection of new capital periodically for each of outlined phases of growth.

Fatona said that the company would seek to develop existing portfolio of assets.

He said that as for the long term, the company will in a sustainable way; evolve as a Pan African Integrated Energy Development company.

Aiteo disclosed that is aggressively pursuing exploration and production. Africa is the next growth frontier and is central to our vision and ambitions for the future.

The company indicated that it sees opportunities where others do not look, and employ expertise and innovation to turn opportunity into rewarding reality.

It stated that the deep water basins off the shores of West Africa represent an important source of new oil at a time when many conventional sources are becoming more challenging to develop.

The company noted that it may not be easy to realize the full potential of West Africa’s offshore fields, from the Niger Delta to the Benin Basin to the west, but the rewards for doing so are significant.

According to Aiteo, deep water exploration is expected to take Nigeria’s proven oil reserves above 40 billion barrels by the middle of the decade, while retrieval of the valuable commodity could bring this figure back down to less than 28 billion barrels by 2021.

“We aim to work tirelessly across the upstream market, in both exploration and retrieval, so that our future discoveries add to the known oil reserves of the African continent as a whole and support the oil industry for the long term, while our work to tap into already-known reservoirs of oil increases output in the short term, bolstering Nigeria and other African countries’ positions as world leaders in oil production.~

“Nigeria is Africa’s largest oil producer and, in global terms, ranks 11th, with an output of around 2.45 million barrels per day. However, an increase in output of 500,000 barrels per day could take it to 7th worldwide, ahead of Mexico and the United Arab Emirates; output growth of 1 million barrels per day would put it close to Canada with nearly 3.5 million barrels of daily oil production,” the company explained.

But many problems may hinder, as Energia boss indicated that insecurity and militancy are major problems that constrain operations.

He said that others include unstable oil price occasioned by shale oil and oil supply glut, inadequate funding, illiquidity, foreign exchange dilemma and delay in the passage of the nation’s Petroleum Industry Bill, PIB.

The Managing Director of Seplat Petroleum Development Company, Mr. Austin Avuru, had predicted that the indigenous companies will also produce about 1.5billion Cubic Feet of gas daily in 2018.

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