Aiteo Eastern Exploration and Production Company, Nigeria’s largest independent oil producer plans to spend as much as $5 billion to boost its oil and natural gas production in the next five years.
The company founded by multi-billionaire Delta State indigene, Benedict Peters, plans to drill new oil wells and re-open existing ones as it seeks to raise production, Chief Executive Officer Victor Okoronkwo, said Tuesday in an interview with Bloomberg in Abuja, Nigeria’s capital
Aiteo will also seek to increase its stake in the joint venture with Nigeria’s state oil company, NNPC, which holds 55% stake of the asset.
“We have a development plan which has been submitted to our joint venture partner NNPC,” he said.
Recall that Aiteo in 2014 acquired Shell’s 45% stake in OML 29, a vast field with 11 oil and gas fields, and the Nembe Creek Trunk Line for over about $2.7 billion.
The Nigerian government has made changes to how operators can raise funds, moving away from the so-called cash call model whereby partners contribute in line with their stake in a joint venture. That gives operators more freedom to secure financing. Nigeria is also cutting its holdings in joint ventures in order to raise cash.
“Our expectation is that in line with the joint venture agreement between us and the federal government, the existing partner will have the right of first refusal,” Okoronkwo said. Aiteo has a share of 45% in Oil Mining Lease 29, with state-owned Nigerian National Petroleum Corp. holding the remainder.
Aiteo presently produces about 90, 000bpd but plans an expansion that will raise production to about 250, 000bpd within five years with daily natural gas production topping 300 million standard cubic feet in the period, Okoronkwo said.
Aiteo Group is also involved in oil and mining deals in the Congo and Zimbabwe.
