The Group Managing Director, Aiteo Eastern Exploration and Production Company Limited, Victor Okoronkwo, has said Nigeria’s power shortage could be resolved through optimal utilisation of the nation’s huge gas deposits.
Okoronkwo spoke at a panel session of the conference titled: Effect of sanctity of contract on Commercial Operation’ organised by the National Association of Energy Correspondents in Lagos.
To him, lack of appropriate synergy between policy makers and players in the energy sub-sector is a major factor for the nation’s epileptic electricity supply. He said government should show greater commitment to power generation by providing favourable environment in order to attract more investors.
He said Aiteo Group is negotiating an alternative financing package that would enable it fund about $5 billion investment to be able to increase its oil production to about 250,000 barrels per day (bpd).This will also grow gas output to about three million standard cubic feet per day (mmscfd) of gas.
“There will be a blend of financing options depending on the alternative financing mechanism the company is working out with its joint venture partner.”
Okoronkwo also stated that Aiteo operates key strategic business of oil infrastructure in Nigeria and a major stakeholder across the energy value chain with huge investments in the country. The company, Okonkwo said, was one of the biggest single investment decision makers up to 2014, when it invested over $2.5 billion in acquiring oil milling lease (OML) 29 asset.
“The company is Nigeria’s largest indigenous company by production and we are committed to producing between 80,000 bpd and 90,000 bpd. In the short to mid-term, we are going to 150,000 bpd and in the mid to long term we are going to 250,000 bpd, we want to secure energy supply for the rest of Africa and move from fossil fuel to clean fuel,” he said.