Nigeria’s undeveloped oil capacity hits 900,000 bpd

STRONG indications have emerged that the nation is having about 900,000 barrels per day spare capacity that is expected to play significant role in the national production target of 4 million barrels per day by 2020.
   Stakeholders, who gathered at the Centre for Petroleum Information Luncheon in Lagos recently believed that optimal utilization of the spare capacity and development of proven undeveloped (PUDs) assets can make a significant impact on future production growth even compared with the major projects.
  The Managing Director of Oando Plc, Wale Tinubu, who emphasized capacity utilization through the indigenous firms, estimated the new oil finds in the country at about 600,000 barrels per day, adding that the independents oil firms could derive value from existing undeveloped capacity.
   Tinubu, who was represented by the General Manager, New business Acquisition and Divestments, Gbite Falade, however said, Oando, has set for itself 100,000 barrels of oil per day target to accelerate the group’s vision of emerging Africa’s premier oil major. 
   He said we had the aspiration and we knew it going to be challenging, we were particularly worried about rising capital, but we went into it step by step and we are so passionate and committed to it. 
     Oando, according to him was positioned to benefit from all local content initiatives and reforms implemented in the country and the industry. 
   “We plan to be involved in governmental bids rounds for assets as well as divestment programmed by International Oil Companies (IOC’s). 
   “We intend to become the partner of choice for bilateral technical and service agreements for various asset owners and the partner of choice for new entrants into the Nigeria oil and gas sector. 
   He added that we want to develop a sound business and technical knowledge to manage the business as well as having access to finding the right type of financing. 
   The Oando boss however noted that the dwindling oil price regime is worrisome for everybody, but stated that, “It is still at the level beyond our benchmark of the acquisition and we don’t appeared worried.” 
   He pointed out that the oil price going south definitely have some implications for Nigeria.
   Chairman of Centre of Petroleum Information (CPI), Chambers Oyibo, added: “Everybody in the oil and gas sector know that the oil price is cyclical and we hope that it would tighten our belt to do the right thing in the country. If the business is not sustainable, there is no business.” He said.