Financial Energy Review
….by Ben Ndubuwa….
Oando Plc has announced a remarkable increase in its crude oil production by nearly 50% in the past three months, following the acquisition of Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni earlier this year. The announcement was made during a high-level meeting between Oando and its Joint Venture partner, the Nigerian National Petroleum Corporation Limited (NNPCL) in Abuja.
The meeting, led by NNPCL’s Group Chief Executive Officer (GCEO), Mele Kyari, saw the participation of key executives including the corporation’s Chief Financial Officer, Adedapo Segun; Executive Vice President of Business Services, Danladi Inuwa; and Executive Vice President of Upstream, Udobong Ntia.
Dr. Ainojie Irune, the Managing Director of Oando Energy Resources Nigeria Limited, expressed his appreciation for NNPCL’s support, underscoring the pivotal role it played in facilitating the company’s growth in such a short period. Oando’s increased production output follows the completion of its $783 million acquisition of NAOC in August, a deal that bolstered the company’s position in the Nigerian oil and gas sector.
“This achievement in less than 100 days is a testament to the hard work and collaboration between Oando and NNPCL,” Dr. Irune remarked. “We’ve been able to boost our production by almost 50%, and this could not have been achieved without your continuous support. We are also pleased with the integration of both legacy companies, which has been streamlined into a more efficient joint venture, reducing the previous three-way structure into two.”
Oando’s progress does not stop at the current surge in production. Irune further outlined the company’s ambitions to continue increasing its output, with a target to ramp up production to over 100,000 barrels of oil per day and 1.3 to 1.4 billion cubic feet of gas per day within the next three years.
“Our commitment is clear—we are focused on increasing production and improving our operational efficiency. We are excited about the future of this partnership,” Irune added. “With NNPCL’s support, we believe these goals are within reach, and we are ready to build on this momentum.”
In response, NNPCL’s GCEO, Mele Kyari, commended Oando on the successful acquisition of NAOC, emphasizing its significance as a milestone in the Nigerian energy sector.
“Taking over Eni’s interests in the joint venture is a pivotal development for Nigeria’s oil and gas industry,” Kyari stated. “This marks a major step forward for indigenous companies, showcasing their ability to take on large-scale assets. It aligns perfectly with our national goals of increasing local participation and contribution to the energy sector.”
Kyari also reiterated NNPCL’s commitment to working closely with Oando to further enhance both oil and gas production. “We are confident that Oando, with its experienced leadership, will lead this joint venture to new heights, meeting both short-term and long-term goals,” he remarked.
The GCEO also highlighted the importance of the partnership, emphasizing its role in helping Nigeria achieve its energy goals. “This acquisition not only strengthens Oando but also strengthens our collective resolve to increase oil and gas production, a crucial step toward meeting the nation’s energy needs,” Kyari added.
Irune also addressed the broader challenges facing the Nigerian oil and gas industry, acknowledging the hurdles that go beyond financial concerns, including security and community-related issues. However, he remains optimistic that with strong collaboration between Oando, NNPCL, and other stakeholders, these challenges can be overcome.
“The challenges we face today are not insurmountable,” Irune asserted. “Through our collective commitment and collaboration, we will overcome these obstacles and build a more sustainable industry that will contribute to the economic growth of Nigeria.”
The statement concluded with both parties expressing optimism about the future of the oil and gas sector, reinforcing the potential of indigenous companies to drive growth and innovation in the industry.
