Canadian Company Eyes New Oil and Gas Opportunities in Nigeria, Set To Strike Deal
- Canada’s Africa Oil is looking to complete a significant deal with Prime Oil & Gas Corporation as it looks to expand operation
- Once the deal is completed, the Canadian company will increase its Nigerian output to approximately 35,000 barrels per day
- Africa Oil’s expansion plans align with Nigeria’s goal of increasing crude oil production to generate more revenue
Dave Ibemere, a journalist at Legit.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.
Canada’s Africa Oil Corporation is working on a deal for full ownership of Prime Oil & Gas Coöperatief, a Dutch entity holding indirect interests in deep-water Nigerian fields operated by TotalEnergies and Chevron.
When the acquisition is completed it will help double Africa Oil Corporation's crude oil production to approximately 35,000 barrels per day.
Source: Getty Images
Reuters reports that the transaction is set to conclude next Tuesday, marking a significant step for the corporation's growth strategy in Nigeria.
According to a senior company official quoted by Reuters, Africa Oil will assume complete control of Prime Oil in the days ahead.
Oliver Quinn, Africa Oil’s chief commercial officer, highlighted the transformative impact of the acquisition said:
"On closing of that deal, we will significantly change the scale of our business. We will double production, double reserves, and significantly boost our liquidity position."
The deal is expected to enable Africa Oil to ramp up production swiftly to around 35,000 barrels per day.
Quinn emphasized the strategic value of these operations, noting their low lifting costs of under $10 per barrel and their premium pricing relative to Brent crude.
He also outlined plans for an infill drilling campaign in mid-life fields to sustain production levels throughout the year.
Other plans by African oil
Beyond Nigeria, Africa Oil maintains interests in Equatorial Guinea and holds a significant stake in Namibia’s Orange Basin through its 40% ownership in Impact Oil and Gas, CNBC reports.
Quinn indicated optimism about Namibia’s potential emergence as an oil exporter by the end of the decade, with TotalEnergies expected to make a final investment decision on the Venus discovery by 2026.
Quinn added:
"Our focus is to enhance cash generation throughout the decade, complemented by growth prospects in Namibia’s emerging petroleum sector."
OPEC wants Nigeria to increase crude oil production
Earlier, Legit.ng reported that the Organisation of the Petroleum Exporting Countries (OPEC) has urged Nigeria to increase its crude oil production.
OPEC believes that Nigeria can produce up to four million barrels of oil per day, given its hydrocarbon reserves.
Nigeria currently produces about 1.7 million barrels per day, with ongoing efforts to increase production to 2.1 million barrels per day (mbpd).
Speaking at the Heirs Energies’ Nigeria Petroleum Industry Leadership Discourse in Abuja, Adeyemi-Bero noted that OPEC officials believe Nigeria is capable of exceeding its current production quota of 1.5 Mbps, provided it demonstrates the capacity to do so.
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Source: Legit.ng
