One of the largest oil producing firms in Africa, Aiteo Eastern E&P Co, has disclosed plans to boost its oil and natural gas production capacity with $5 billion investment.
Aiteo’s Chief Executive Officer (CEO), Victor Okoronkwo, made this disclosure in an interview in Abuja, Nigeria. According to Okoronkwo, the investment will facilitate the company’s plan to increase its stake in a joint venture with the Nigerian National Petroleum Corporation (NNPC).
It will interest you to know that Aiteo has a share of 45 percent in Oil Mining Lease 29, while the NNPC holds the remaining.
[READ MORE: Shell plans $2 billion investment in Kano Electricity Distribution Company]
The CEO said, We have a development plan which has been submitted to our joint venture partner, NNPC. Our expectation is that in line with the joint venture agreement between us and the federal government, the existing partner will have the right of first refusal.”
Investment Objective: Aiteo’s $5 billion investment is aimed at growing the company’s oil production to 250,000 barrels a day, and increasing gas supplies to about 300 million standard cubic feet per day.
[READ ALSO: CBN report shows Nigeria’s oil revenue declined by N62 billion in May]
The country will also benefit immensely from the deal, as Aiteo expressed optimism that the investment would raise gas supply and lead to an increase in power generation to more than 1.2 gigawatts in Nigeria.
How the fund will be raised: Okoronkwo said the investment fund would likely be raised through a cocktail of financing options, which according to him, depends on how they land with the alternative financing mechanism.
Aiteo’s operational milestone at a glance: When oversea operators were trying to tread softly in Nigeria due to constant attacks carried out by militants on their oil infrastructure, Aiteo is among the Nigerian producers that bought oil leaders from majors like Royal Dutch Shell Plc.
[READ FURTHER: Fixed Income expert explains why investors should diversify their investments]