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Relying on the sustained peace in oil producing communities since the visit of Acting president some months ago, the chief executive of Oando Plc is upbeat that production could reach 2.2 million barrels per day (bpd) by the end of June.
Business Hilights recalls that at the return of hostilities in oil rich Niger Delta, Acting President, Yemi Osinbajo summoned rare courage and visited flash points and volatile communities with the message of peace and ‘settlements’.
Managing Director of Oando, Chief Pade Durotoye, on Wednesday at the Africa Independents Forum in London revealed that Nigerian now has the chances of upping crude production to 2.2mbpd on or before June this year.
According to him, all is set for the moribund Forcados oilfield to be back to capacity by the end of June and the feat could power full return to being once again, Africa’s largest oil exporter.
In his submission, Durotoye averred that “We think that the worst is behind us,” hinting that “Before the end of June, we will have Forcados back, which would take us comfortably back to 2.2 million bpd.”
He had recalled that attacks in the Niger Delta had pushed production to just over 1 million bpd at certain points last year, the lowest in decades, but attacks have abated since the start of the year.
“The first Foracdos cargo from the main Trans Forcados export line loaded last week, though operator Royal Dutch Shell has said force majeure remains in place.
Oando chief hinged the feat to what he described as “bold actions” by the government to address security in the area , and added that if it continued, Oando could boost output from 50,000 bpd to 150,000 bpd within 12-18 months.
While observing that Nigeria’s long-delayed Petroleum Industry Bill (PIB), which governs everything from the operations of state oil company NNPC to fiscal terms on oil exploration projects, was moving at a more assured pace, Durotoye revealed that anxiety over fiscal terms has held back upstream investment, especially in capital-intensive deepwater offshore.
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