We’ve increased production by 50% since Agip acquisition, says Oando

Oando Energy Resources Nigeria Limited (OERNL) says it has increased production output by about 50 percent since its acquisition of the Nigerian Agip Oil Company (NAOC).

According to a statement on Sunday, Ainojie Irune, managing director of OERNL, spoke during a high-level meeting with the Nigerian National Petroleum Company (NNPC) Limited, at the national oil firm’s towers in Abuja.

The statement said the meeting was led by Mele Kyari, the group chief executive officer of NNPC, and Irune.

Irune expressed gratitude for NNPC’s support, providing updates on the developments since Oando’s acquisition in August.

“Just by way of an update, in less than 100 days, since acquisition, we have been able to increase our production outputs by almost 50%. This could not have been achieved without your support,” he said.

“We’ve been able to improve the integration of both legacy companies, again led by not just Oando, but NNPC, bringing the JV that used to exist in three parts into two, seamlessly.”

Irune further emphasised the company’s commitment to increasing production and improving operational efficiency, adding that “we are excited about the future of this partnership”.

“With the support of NNPC, we aim to increase production to over 100,000 barrels of oil per day and 1.3-1.4 billion cubic feet of gas per day within the next three years,” Irune added.

He said the challenges the company has seen are not insurmountable.

“Rather, with the commitment and collaboration of all parties, we will overcome the current adversity to build a sustainable industry and economy,” the OERNL MD said.

Speaking at the meeting, Kyari congratulated Oando on its acquisition of NAOC.

“We believe that taking over the interests from Eni in this joint venture is a positive development for our industry and country. It signifies indigenous companies’ ability to play a bigger role in big assets and align with the national aspiration in the energy industry,” he said.

“We see this development as a massive step on the path to realising that national goal. We will work with Oando intently to ensure that we do two things, as you have highlighted: increase oil production and also increase gas production.

“We believe that you will be able to steer this ship to the delivery line in the short term and the long term.”

In August, Oando said it successfully completed the acquisition of a 100 percent shareholding in NAOC from Eni. The deal was worth $783 million.