Atlantic Energy bosses predict rapid rise in Nigeria's indigenous oil production
Joint Chief Executive Officers of one of Nigeria’s leading oil companies Atlantic Energy are hopeful indigenous companies will be responsible for producing 30 percent of the country’s oil in five years’ time.
Kola Aluko and Scott Aitken said their company has been pushing hard for increased local participation in the upstream market, while attending the African Oil Week conference recently held in Cape Town, South Africa.
Aluko said: “Nigerian companies like Atlantic Energy have pushed for increased local participation in the upstream sector.
“As recent as five years ago, six to seven international oil companies were producing over 97 percent of Nigeria’s oil and gas, now Nigerian companies are producing close to 10 percent.
“I believe we can have 30 percent of Nigeria’s oil and gas production being produced by Nigerian companies within five years. The time is now for companies like Atlantic Energy and other indigenous companies to step up to the plate.”
Aitken made an example of Atlantic Energy’s Strategic Alliance with the exploration arm of the Nigerian National Petroleum Corporation (NNPC), Nigerian Petroleum Development Company (NPDC) where in Atlantic Energy provides funding, technical and project management assistance to NPDC for designated assets.
He also noted that Atlantic Energy has invested more than $500 million further to the Strategic Alliance Agreement with NPDC and also noted that NPDC and its Joint Venture partner have commenced a 60,000 barrel of oil a day flow line and flow station reinstatement.
During his address, Aiken explained there are hundreds of underdeveloped discoveries onshore Nigeria and with the recent divestments of onshore assets by International Oil Companies operating in Nigeria, this would increase the opportunities and access of Nigerian indigenous oil and gas companies to eight billion barrels of crude oil and 46 Trillion cubic feet of natural Gas Gross Reserves.
He discussed the challenges to the development of existing assets and increasing production including ageing infrastructure some of which have not been replaced or maintained properly further to which he suggested a detailed evaluation and phased infrastructure replacement/upgrade.
He also noted Host Community/ stakeholder relationships and expectations were having a negative impact on production levels and suggested improved community engagement and update needs assessment.
He also reported that Atlantic Energy has made significant achievements through an increase in the reserves of the assets covered by the Strategic Alliance as well as new field development programmes.
G7 Summit guide: What it is and what leaders hope to achieve
Unless you’ve had your head buried in the sand, you’ll have seen the term ‘G7’ plastered all over the Internet this week. We’re going to give you the skinny on exactly what the G7 is and what its purpose on this planet is ─ and whether it’s a good or a bad collaboration.
Who are the G7?
The Group of Seven, or ‘G7’, may sound like a collective of pirate lords from a certain Disney smash-hit, but in reality, it’s a group of the world’s seven largest “advanced” economies ─ the powerhouses of the world, if you like.
The merry band comprises:
- The United Kingdom
- The United States
Historically, Russia was a member of the then-called ‘G8’ but found itself excluded after their ever-so-slightly illegal takeover of Crimea back in 2014.
Since 1977, the European Union has also been involved in some capacity with the G7 Summit. The Union is not recognised as an official member, but gradually, as with all Europe-linked affairs, the Union has integrated itself into the conversation and is now included in all political discussions on the annual summit agenda.
When was the ‘G’ formed?
Back in 1975, when the world was reeling from its very first oil shock and the subsequent financial fallout that came with it, the heads of state and government from six of the leading industrial countries had a face-to-face meeting at the Chateau de Rambouillet to discuss the global economy, its trajectory, and what they could do to address the economic turmoil that reared its ugly head throughout the 70s.
Why does the G7 exist?
At this very first summit ─ the ‘G6’ summit ─, the leaders adopted a 15-point communiqué, the Declaration of Rambouillet, and agreed to continuously meet once a year moving forward to address the problems of the day, with a rotating Presidency. One year later, Canada was welcomed into the fold, and the ‘G6’ became seven and has remained so ever since ─ Russia’s inclusion and exclusion not counted.
The group, as previously mentioned, was born in the looming shadow of a financial crisis, but its purpose is more significant than just economics. When leaders from the group meet, they discuss and exchange ideas on a broad range of issues, including injustice around the world, geopolitical matters, security, and sustainability.
It’s worth noting that, while the G7 may be made up of mighty nations, the bloc is an informal one. So, although it is considered an important annual event, declarations made during the summit are not legally binding. That said, they are still very influential and worth taking note of because it indicates the ambitions and outlines the initiatives of these particularly prominent leading nations.
Where is the 2021 G7 summit?
This year, the summit will be held in the United Kingdom deep in the southwest of England, with Prime Minister Boris Johnson hosting his contemporaries in the quaint Cornish resort of Carbis Bay near St Ives in Cornwall.
What will be discussed this year?
After almost two years of remote communication, this will be the first in-person G7 summit since the novel Coronavirus first took hold of the globe, and Britain wants “leaders to seize the opportunity to build back better from coronavirus, uniting to make the future fairer, greener, and more prosperous.”
The three-day summit, running from Friday to Sunday, will see the seven leaders discussing a whole host of shared challenges, ranging from the pandemic and vaccine development and distribution to the ongoing global fight against climate change through the implementation of sustainable norms and values.
According to the UK government, the attendees will also be taking a look at “ensuring that people everywhere can benefit from open trade, technological change, and scientific discovery.”