Crude Oil: Nigerian Indigenous Operators Target 400,000bpd

This Day

24 May 2011

Crude Oil: Nigerian Indigenous Operators Target 400,000bpd

By Ejiofor Alike

Crude oil production by private indigenous oil companies in Nigeria will hit 400,000 barrels per day in the next three years, from the current level of about 80,000barrels per day, Chief Executive Officer of Seplat Petroleum Development Company Limited, Mr. Austin Avuru , has said.

Speaking at an investors’ forum in Lagos, Avuru attributed the anticipated growth in indigenous production to the current release of oil blocks to the local companies by Shell Petroleum Development Company (SPDC) Limited.

Local operators account for only about three per cent or 80,000 barrels per day of the 2.6million barrels per day of crude oil production in the country.

“We have spent 20 years of indigenous capacity building and only achieved 80,000barrels per day but with Shell’s current transactions, indigenous production will hit 400,000 barrels per day in the next three years,” he said.

Avuru’s company, Seplat Petroleum Company Limited, an indigenous consortium jointly formed by two Nigerian firms - Platform Petroleum Limited, and Shebah Petroleum Development Company Ltd, along with Maurel & Prom of France had acquired Shell’s three oil blocks in 2010.

The consortium also bought Total Exploration &Production Nigeria Limited’s 10per cent stake; and Nigeria Agip Oil Company’s 5per cent interest in the three licenses – Oil Mining Licenses (OML) 4, 38 and 41, which Avuru said was currently producing 36,000barrels per day.

Avuru stated that apart from the three blocks acquired by his company, Shell was also offering five additional blocks to the local companies.