–restates commitment to host community
SWITZERLAND, JULY 04 – Nigeria’s largest indigenous oil production company, Aiteo is set to launch an aggressive gas and upstream development drive while scaling up development initiatives in its host communities.
The company has announced plans to spend up to $ 5 Billion on increasing its oil production output from the current 90,000 barrels per/day(bpd) to 250,000 bpd in the next five years.
Aiteo’s Group Managing Director, Victor Okoronkwo revealed this to journalists during the ongoing Nigerian Oil and gas conference and Exhibitions in Abuja.
According to Okoronkwo, the development would also spur increase of the country’s gas supply to 300 million scf per day.
He stated that massive investment was needed to grow the petroleum industry, adding that his company was at the fore of supporting the sector’s development.
He said, “Aiteo was one of the biggest single investment decision makers when we have invested over $2 billion in acquiring the Oil Mining Lease, OML, 29 assets.
“At the moment, we do have our development plan which has been submitted to our joint venture partners (JV), and because the government is exiting the cash call situation, we are negotiating an alternative finance package to be able to fund about $5 billion of investment. The investment would move production to 250,000 barrels per day.
“However, this will increase our gas supply to about 300 million standard cubic feet (SCF), of gas per day, which will be enough to power more than 1.2 gigawatts of electricity in Nigeria. On finances, it is going to be a cocktail of financing options, depending on how we land with the alternative financing mechanism we are working with our joint venture partners – NNPC,” Okoronkwo said.
Aiteo is the operator of the prolific Oil Mining Lease (OML) 29 as well as one of Nigeria’s most vital crude oil evacuation facilities, the Nembe Creek Trunk Line (NCTL).
Victor Okoronkwo, a Petroleum Engineer who was previously General Manager, Gas at Shell, was appointed the Group Managing Director of Aiteo in April.
Today’s Echo gathered that the new management under Victor Okoronkwo is already making moves to douse the tension and engender cordial relationship with the people of Nembe community in Bayelsa, where the company has significant operations. He has reportedly reached out to key stakeholders in a bid to resolve the friction and expedite Aiteo’s contributions to the development of the community.
In May, Aiteo donated half a billion naira to the Bayelsa State Education Trust Fund, set up to complement he state government’s efforts in educational development.