Press Release
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The
Group managing Director of Nigerian National Petroleum Corporation (NNPC), Dr.
Joseph T. Dawha (right), congratulating the Chairman of Aiteo Group, Mr.
Benedict Peters (left) and the Managing Director of Shell Petroleum Development
Company, Mr. Osagie Okunbor, on the successful conclusion of the deal
transfering Shell's equity to Aiteo after the signing of the Memorandum of
Understanding on Wednesday. (Pic: Public Affairs Division, NNPC)
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The local content policy of the Federal Government
received a boost Wednesday with the formal handing over of Shell’s equity in
OML 29 to a local oil and gas firm, Aiteo, thereby increasing the participation
of indigenous companies in the upstream sub-sector of the oil and gas industry.
Speaking at a brief ceremony to mark the signing of
a Memorandum of Understanding (MoU) between Shell Petroleum Development Company
(SPDC) and Aiteo for the transfer of Shell’s equity in OML 29 to the latter,
the Group Managing Director of the Nigerian National Petroleum Corporation
(NNPC), Dr. Joseph T. Dawha, described the event as a milestone in the quest of
the Federal Government to develop the capacity of Nigerians and Nigerian
companies to play leading roles in every sector of the oil and gas industry as
encapsulated in the Nigerian Content Development Act.
Also speaking in a similar vein, the Managing
Director of SPDC and Country Chair of Shell Companies in Nigeria, Mr. Osagie
Okunbor, described the event as a major step towards the fulfillment of “the
nation’s aspiration of growing indigenous participation in the upstream sector
of the oil and gas industry”.
He described OML 29 as one of the biggest onshore
oil blocks that Shell has ever divested in the country.
“One of the key reasons we are divesting some of
our assets in the country is to grow indigenous participation in the industry.
With the divestment of OML 29, one of our biggest blocks to Aiteo, the local
content development in the country has received a major boost,” Okunbor said.
The Shell boss who put the value of the oil bock at
$2.56 billion also disclosed that it has an average production capacity of 43,
000 barrels per day with a potential to grow beyond its current capacity in the
nearest feature.
In his remarks, the Chairman of Aiteo Group, Mr.
Benedict Peters described the ceremony as a significant landmark that will help
the company achieve its aspiration of participating in the entire value chains
of the oil and gas industry.
“To us in Aiteo, this event brings a capping to our
aspirations, visions and our dreams. It has also brought tremendous value to
our balance sheet. The reality of the asset is that it is the largest on-shore
assets that Shell has ever divested,” he stated.
He expressed optimism that with the acquisition,
the company will add significant value to the oil and gas industry and the
nation’s economy, adding that “The Local Content Act made us who we are today,
without it companies like us will never have made it to this particular level”.
He expressed gratitude to the Federal Government
for providing the enabling environment for indigenous companies to compete and
grow in the oil and gas industry through the Local Content Act.
“We thank the President and the Minister of
Petroleum Resources who have driven the local content policy that has given
birth to the Nigeria of our dream,” Peters said.
The event was witnessed by the Group Managing
Director of the NNPC, Dr. Joseph Thlama Dawha and other members of Top
Management of the Corporation.
NNPC is the senior partner in the OML 29 Joint
Venture. Other partners include Total and Agip.
OHI ALEGBE
Group General Manager,
Group Public Affairs Division,
NNPC Towers,
Abuja
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