Africa Oil expands in Nigeria, targets 35,000 barrels per day after Prime Oil takeover 

Canada’s Africa Oil Company is ready to considerably broaden its footprint in Nigeria by doubling its manufacturing to about 35,000 barrels per day after the completion of its deal for full possession of Prime Oil & Gasoline Coöperatief subsequent Tuesday.

In response to a report by Reuters, quoting a senior firm official, Africa Oil will take full management of Prime Oil, a Dutch entity that holds oblique stakes in deep-water Nigerian fields operated by TotalEnergies and Chevron.

“On closing of that deal, we’ll considerably change the size of our enterprise. We’ll double manufacturing, we double reserves and considerably increase our liquidity place,” Africa Oil’s chief industrial officer, Oliver Quinn instructed Reuters.

As soon as the deal is finalized, Africa Oil expects to ramp up manufacturing to round 35,000 barrels per day. “They’re very vital worth barrels as a result of they’ve very low lifting value of below $10, so the margin on the barrels is excessive and sometimes promote at premium to Brent,” he mentioned.

Quinn added that to take care of manufacturing in its mid-life fields, Africa Oil and its companions have deliberate an infill drilling marketing campaign this yr.

Past Nigeria, Africa Oil additionally has pursuits in Equatorial Guinea and a key stake in Namibia’s Orange Basin. By its 40% holding in Influence Oil and Gasoline, the corporate has publicity to the brand new oil discovery.

TotalEnergies, the operator of the Venus discovery, is anticipated to make a last funding choice by 2026, paving the way in which for Namibia to emerge as an oil exporter by the top of the last decade.

“Our focus is so as to add to the money technology machine, which runs via the last decade whereas on the backend Namibia Venus comes onstream after which we’ve vital progress in that asset,” Quinn mentioned.

Influence on Nigeria’s oil output  

This enlargement by Africa Oil strengthens its place in Africa’s oil sector whereas it additionally eyes long-term beneficial properties from its investments in Namibia’s rising petroleum business.

As well as, the enlargement will contribute to Nigeria’s crude oil output, which the federal authorities has vowed to extend.

Nairametrics reported that Nigeria surpassed its OPEC quota of 1.5 million bpd by 70,000 bpd. Nonetheless, it falls wanting its goal of two.06 mbpd.

What it is best to know 

Final yr, Africa Oil Corp. was granted a 20-year license extension for Petroleum Mining Lease 52 (PML 52) by the Nigerian Upstream Petroleum Regulatory Fee (NUPRC). PML 52 features a 62.46% curiosity within the offshore Agbami discipline.

• Its different operations in Nigeria at present embrace PML 2, PML 3, PML 4, and PML 52, that are operated by Chevron and TotalEnergies.
• In response to the corporate’s web site, the reservoirs within the fields produce gentle to medium candy crude oil that’s extracted utilizing FPSO (Floating Manufacturing, Storage, and Offloading) techniques.