The federal government remains on course to achieve its target of average production of 2.0 million barrels per day (mbpd) by December 2024 as Oando continues to scale up its production.
Following the acquisition of the Nigerian Agip Oil Company (NOAC) onshore assets, Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobri yesterday charged Oando to increase its production to 100,000 barrels per day (bpd).
Speaking when Oando’s Chief Operating Officer, Mr. Alex Irune paid him a visit in Abuja, Lokpobri said there were reports that the firm has already raised its production from over 20,000 bpd to over 30,000 bpd in just a few days of the acquisition.
“I am happy to also tell you that I got information, I got my intelligence that following the successful acquisition, you have already increased production from above 20,000 to more than 30,000. That is what I am saying that Oando can do it, and I am looking forward to the time that you do 100,000,” Lokpobbri said.
He said his job is to do all in his power to create the best environment for Oando and other companies operating in the Niger Delta region to boost production.
He said in order to lift the country out its economic challenges, it requires increased crude oil production.
He reiterated that the target of the country is to hit the target of 2.0 million bpd in December this year.
“You know, to increase production, which we seriously need now. But the shortest way for us to get out of our current economic problems is to increase production. And our target is that by December we want to hit at least two million barrels,” Lokpobri said.
The minister also disclosed that with the acquisition of NAOC, the stock of Oando Energy Plc has soared. He said his expectations is for the value to increase to N1, 000 per share in the stock market.
In order to provide the right environment, the minister revealed he has already met the Bayelsa State Governor, Douye Diri to solicit cooperation with Oando operations.
He urged the company to take advantage of being an indigenous to relate better with its host community than the International Oil Companies (IOCs) and also hit optimal performance.
He recalled he had granted a media interview informing the foreign press that the indigenous firm has the capacity to operate the divested assets.
Lokpobri thus, charged the firm to sustain the same momentum the IOCs reached. He congratulated the firm for history of acquisition of two firms: Conoco Philips and the NAOC.
Meanwhile, Irune said based on the history of the company that rose from 500 filling stations, it would continue to do great things.
He said with the completion of the acquisition, the company now holds 40 per cent joint venture interest with the Nigerian National Petroleum Company Limited (NNPCL).
According to him, it is not only a foreign company that has the exclusivity of being an IOC. He insisted that a Nigerian firm can also do it.
“First transaction was in 2014; ConocoPhillips, 20 per cent interest in the now of JV, and now the conclusion of ENI’s 20 per cent stake now of JV, making us 40 per cent holders in the JV, with the NNPC holding 60 per cent.
“In everything we have done, Minister, we have sought to put the best of local content forward, inspire Nigerians to show that Nigerians can do it. IOC is not a concept reserved only for companies from the West, the Far East, and the likes,” Irune said.
