Atlantic Energy co-CEO, Scott Aitken predicts that in five years indigenous oil and gas companies will account for 30% of oil and gas production in Nigeria. He says that there are 100s of underdeveloped discoveries onshore Nigeria and with the recent divestments of onshore assets by international oil companies operating in Nigeria, this would increase the opportunities and access of indigenous oil and gas companies to eight billion barrels of crude oil and 46 trillion cubic feet of natural gas gross reserves.
Aitken discussed says challenges for such companies relate to the development of existing assets and increasing production including ageing infrastructure some of which have not been replaced or maintained properly. He also says host community/ stakeholder relationships and expectations were having a negative impact on production levels and suggests improved community engagement and update needs assessment.
As an example of new developments is Atlantic Energy’s strategic alliance with the exploration arm of the Nigerian National Petroleum Corporation (NNPC), Nigerian Petroleum Development Company (NPDC) wherein Atlantic Energy provides funding, technical and project management assistance to NPDC for designated assets.
Atlantic Energy has made significant achievements through an increase in the reserves of the assets covered by the strategic alliance as well as new field development programmes. The group has invested over US$500 million as part of the strategic alliance agreement with NPDC and NPDC and its joint venture partner have commenced a 60,000 barrel of oil a day flow line and flow station reinstatement.
“Nigerian companies like Atlantic Energy have pushed for increased local participation in the upstream sector. As recent as five years ago, six or seven international oil companies were producing over 97% of Nigeria’s oil and gas. Now Nigerian companies are producing close to 10%.”