Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources, has announced that Oando’s acquisition of Eni’s subsidiary, Nigerian Agip Oil Company (NAOC), will increase Nigeria’s crude oil production to two million barrels per day (bpd).
Lokpobiri made the statement on Thursday in Abuja during a meeting with Oando Energy Resources Nigeria Ltd., led by its Managing Director, Dr. Ainojie Irune. The acquisition, completed in August 2024 for $783 million, has already resulted in an increase in production to more than 30,000 bpd.
The minister emphasized that with the right support, Oando is expected to significantly contribute to the Federal Government’s goal of reaching a production target of two million bpd by the end of 2024. He assured that efforts would be made to create a favorable environment for Oando and other companies in the Niger Delta to boost production.
Lokpobiri highlighted that 80% of the acquired assets are located in Bayelsa and noted ongoing collaboration with the state government and other stakeholders to maximize production from these assets. He praised the local capacity growth among Indigenous companies like Oando, Seplat, and First E&P, and expressed confidence in their ability to run operations professionally and profitably.
Dr. Irune, during the meeting, discussed the impact of the acquisition on asset management, local security, and community relations, and how it aligns with Nigeria’s production goals. He also highlighted Oando’s evolution from a downstream company to acquiring upstream assets, demonstrating the potential of indigenous companies to compete with international oil corporations.
Irune expressed gratitude for the minister’s support and commitment to the growth of indigenous companies within the oil and gas sector.