AFRICANGLOBE – Nigerian wholly owned exploration and production companies operating at the upstream sector of the oil and gas industry will produce 500,000 barrels of oil daily that represents about 20% of the Nigerian output by 2018, according to the Managing Director of Seplat Petroleum Development Mr. Austin Avuru.
The Seplat boss who spoke at Lagos Petroleum club held recently in Lagos revealed the Nigerian oil and gas companies will be responsible for the production of 1.5billion Cubic Feet of gas daily about half of the total supply of natural gas in the Domestic market within the period under review.
According to him “The ongoing divestment by Shell and other IOCs, including Chevron, is transferring significant asset holdings to Nigerians.” He pointed out, that these figures can only be reached and sustained by the local oil producers if they focus on strong corporate governance, which allows quality planning and delivery and policy consistency, leading to long term sustainability Avuru noted that at that local oil firms have not cultivated the habit of sustained improvement in production over time, unlike IOCs operating in Nigeria. “There’s no IOC which was doing 30,000 barrels twenty years ago that is not producing 50,000 barrels,” he added.
We gathered that Shell is set to divest its equity, along with those of co-partners Total and Eni, in four Oil Mining Leases (OMLs) 18, 24, 25 and 29, to Nigerian owned companies. OML 29 projected to deliver over 170,000barrels and 200m Msc/d by 2019 .
The buyer of Shell& Co’s 45% stake in OML 29 is reported to have bid $2.85 Billion for the asset While Seplat Petroleum has set the ball rolling to produce about 100, 000 barrels and 400 MMscf/d by 2017, from the three OMLs it acquired from Shell in 2010. Shell sold its stake in Oil Mining Lease (OML) 30, its largest producing tract in the Western Niger Delta, to Shoreline Natural Resources in 2011. Gross production in OML 30 is currently 45,000 barrels.
By: Anayo Korie