Oando Chief Executive, Pade Durotye believes that with what appears to be the worst disruptions in Nigeria’s oil-producing Delta region are over, and production could reach 2.2 million barrels per day (bpd) by the end of June.
Durotoye told the Africa Independents Forum in London the long-closed Forcados oilfield could be back to capacity by the end of June, enabling a return to nearly full production from what is typically Africa’s largest oil exporter.
“We think that the worst is behind us,” Durotoye said. “Before the end of June, we will have Forcados back, which would take us comfortably back to 2.2 million bpd.”
Attacks in the Niger Delta had pushed production to just over 1 million bpd at certain points last year, the lowest in decades, but attacks have abated since the start of the year.
The first Foracdos cargo from the main Trans Forcados export line loaded last week, though operator Royal Dutch Shell has said force majeure remains in place.
Durotoye said “bold actions” by the government to address security in the area had helped, and that if it continued, Oando could boost output from 50,000 bpd to 150,000 bpd within 12-18 months. Still, Durotoye said concerns over more violence was leading investors to view the region with a lot of caution.
Oando is one of Nigeria’s independent conglomerate in the energy industry, including petroleum products marketing, supply & trading, exploration and production, and gas distribution, and the first Nigerian company to achieve a dual listing on both the Nigerian and Johannesburg Stock Exchanges. Oando is Nigeria’s largest indigenous oil company with a production output of 54,000 boepd and a market capitalisation of USD894 Million.