June 23, (THEWILL) – The audacious launch by Aiteo Group and Bravura, two entities founded by Nigerian-born African billionaire and oilman, Benedict Peters, into Zimbabwe, Mozambique and the Congo and the impressive half year numbers of the former, Nigeria’s indigenous foremost independent energy operator, has put the businessman in the spotlight once again.
Last week, THEWILL reported exclusively that Aiteo Eastern Exploration and Production Company (AEEPCO) recorded crude sales of $325m about N471 billion in the first half of this year in its operations in Nigeria.
The information received from banking sources, further stated that the remarkable performance has reinforced the firm’s optimism for a N1 trillion revenue target for 2024.
Aiteo which operates OML 29, a joint venture asset it co-owns with NNPC, had shut down production for almost two years due to crude oil theft and vandalisation of its assets by thieves. It resumed operations in Q4 last year and has steadily ramped up production in the asset that has the capacity to produce an estimated 100, 000bpd.
The company also recorded remarkable exploits in Southern Africa with its successful acquisition of a Mozambique gas asset, Mazenga. With this development, Aiteo becomes the operator of the asset which contains some of the biggest onshore gas reserves in sub-Saharan Africa.
Announcing the spectacular feat, Aiteo revealed that the acquisitiondeal which places it in charge of the block, was formalised througfarm-in arrangements with Mozambique’s National Hydrocarbons Company (ENH).
Industry experts who reacted to the development see it as tremendously positive. “The economy has been quite challenging these times, especially in Nigeria which is still plagued by oil theft, low production, rising inflation, painfully high exchange rate regime and the lingering spate of policy inconsistency, a euphemism for corruption.
“The push to consolidate the gains of its corporate strategy towards continental dominance is a huge plus for Aiteo,” said Engr Ken Amadi, an oil and gas operator.
“It is instructive that the experience from Nigeria’s tough operating environment would guide Aiteo, or other indigenous firms launching into the continental space, to aim at excellence,” Amadi added in a note to THEWILL.
For instance, 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.
Aiteo has so far shipped around 3 million barrels of Nembe Crude Oil Blend for the half year and is steadily increasing output, according to banking and shipping records seen by THEWILL.
In January 2024, the vessel MT AQUABLISS loaded 233, 655, while 954,176 barrels were loaded on the vessel named AEGEAN MARATHON in February 2024. MT Delta Kanaris loaded 953, 252 in March 2024, while in May 2024, MT POPI P loaded 957, 757 barrels, according to data obtained by THEWILL. Nembe Blend average for the period was around $86pb and exchange rate on Friday was around N1485 – $1.
Aiteo has not commented officially since the report was published last week.The disclosure which should boost the confidence of its stakeholders will also impress the financial services institutions which co-funded the over $3bn OML 29 asset acquisition in 2014.
The consortium of lenders that committed about $2bn according to data seen exclusively by THEWILL include: Zenith – $323m, First Bank – $300m, GTB – $300m, Fidelity Bank – $175m, AFC – $125m, Ecobank Nigeria and Union Bank – $100m each, Sterling Bank – $60m and Shell Western – $512m.
Peters’ initial equity contribution for the purchase was $898, 237,697.35 in cash with an additional $257m injected at closing for fees and other ancillary costs and costs to restart production. Other small equity holders contributed $136m, which the banking sources said Aiteo is already in the process of buying out.
The Nembe Crude Oil grade has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.
THEWILL reports that Aiteo’s sister company, Bravura Holdings, a mining company with operations mainly in Southern and Central Africa, has also seen its fortunes on the rise after securing mining deals for lithium production in Zimbabwe, Mozambique and Congo.
Bravura recently announced the completion of Zimbabwe’s first world-class lithium facility, the Kamativi Lithium plant with an annual producing capacity of 30, 000 tonnes. The successful continental expansion drive is a major milestone for any Nigerian owned energy company.
Coming at a time when the 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.
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.
