January 21, (THEWILL) – The expansion drive by Aiteo Group, Nigeria’s foremost independent energy operator, to establish presence in the Central and Southern Africa territory signposts strategic move towards global competition.
Like Nigerian banks, which are combing the nooks and crannies of Africa’s financial landscape, in the mood of multinational engagement, indigenous Nigerian energy firms are braving the odds to establish in the bowel of the continent.
The foremost Nigerian energy independent, Aiteo, has bought a stake in a Mozambique gas block, Mazenga. With this development, the Nigerian company is now the operator of the block which contains some of the biggest onshore gas reserves in sub-Saharan Africa.
Announcing the spectacular feat, Aiteo revealed that the acquisition deal places it in charge of the block. According to reports, the deal was formalised through farm-in arrangements with Mozambique’s National Hydrocarbons Company (ENH).
The continental expansion drive marks the stepping out of the Nigerian energy major towards making an impact that will position it for global competition. This is an actuality that derives from the aggressive human capital development plan of the firm, which will position it to deploy its exceptional professionalism in the exploration of gas in the area.
Coming at a time that gas business is caught up in the web of intense geopolitical crossfire between the West and the East, Africa has become the beautiful bride, as far as the commodity is concerned. According to industry experts this gives Aiteo an edge.
With a corporate vision of ‘Tackling Africa’s energy challenges’ scripted on a tablet of commitment, which says Aiteo aims at ‘unlocking energy by looking where no-one dares to look’, the Nigerian energy company has moved ahead for practical ‘grabbing’ of the vast opportunities in Mozambique and beyond.
According to reports, after closing the deal, Aiteo started a rigorous development programme that included extensive fieldwork, aeromagnetic and gravitational geological research, as well as the reprocessing and reinterpreting existing data. This shows that Aiteo did not enter the deal unprepared.
Commenting on the agreement, Aiteo’s Chief Executive Officer, Benedict Peters, said: “We aim to elevate our profile and expand our global gas resources to meet industry-leading standards within the continent.
“Our proven track record gives us confidence in our ability to develop these assets, benefiting Mozambique and all stakeholders.”
As a believer in the local content policy, Aiteo will deploy its ready trained professionals to move to the Southern African country and do exploits.
On the strength of its resources, Mozambique is reputed to be Southern Africa’s most important energy producer and exporter – an opportunity that Aiteo’s highly professional team will handle expeditiously.
The Mazenga assets, nestled in Mozambique’s rich sedimentary basin, span approximately 23,000 square kilometers. They are estimated to contain a substantial gas reserve of 19 trillion cubic feet, highlighting the block’s significant potential company, Empresa Nacional de Hidrocarbonetos (ENH), positioning Aiteo as the block’s operator.
Peters said, “The assets we are investing in are situated in a region with some of the highest gas production potential in Mozambique. Our approach is rooted in our strategy of actively engaging with unique energy assets across Africa.
“We aim to elevate our profile and expand our global gas resources to meet industry-leading standards within the continent. Our proven track record gives us confidence in our ability to develop these assets, benefiting both Mozambique and all stakeholders.”
THEWILL found that Nigerian firms are spreading the Central and Southern Africa collaborating with major and small businesses in the energy ecosystem.
The expertise acquired by the Nigerian operators in Engineering, Procurement, Installation, Operation and Maintenance (EPICOM) space equips them to undertake a wide range of technical jobs in the regions.
These include installation and servicing of the metering system, construction of loading bay, LPG installation, tank farm construction, installation of actuators, colons, mechanical seals, valves, steam trap and other process equipment.
At present, Aiteo contributes more than five per cent of Nigeria’s daily oil production, producing around 100,000 barrels daily which involves exploiting associated and non-associated gas.
Mozambique is home to some of the world’s largest natural gas reserves, particularly in the Rovuma Basin, estimated to hold over 100 trillion cubic feet of natural gas. The country is currently developing several large-scale liquefied natural gas projects with the involvement of international oil companies like Total, ENI, and ExxonMobil. These projects are focused on extracting and exporting liquefied natural gas, with notable initiatives, including Total’s Mozambique LNG project and ENI’s Coral South FLNG project.
Aiteo, as Nigeria’s largest indigenous oil producer may not find operating outside the shores of the country challenging because of the peculiar experience in Nigeria’s community and operational experience.
With its expansion into Mozambique, Aiteo is aggressively pursuing exploration and production opportunities across Africa and beyond, adding to its existing assets in the Niger Delta basin and the Benue Trough.
Experts believe that the continental expansion of Nigeria’s indigenous firms is a stepping stone towards global competition which will expose them to the opportunities that the multinationals enjoyed in exploiting our environment.
The ultimate beneficiary is Nigeria whose foreign reserves will receive a boost from the profits that the indigenous firms operating outside the country will repatriate. It will augment the decline in capital importation which has been the trend for some time now. and help in shoring up the value of the naira.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
