The Guardian
Email YouTube Facebook Instagram Twitter WhatsApp

Addax plans $5billion fresh investment in Nigeria


Addax Petroleum Development (Nigeria) Limited, said it is planning a fresh investment of up to $3-5billion in the country over the coming years, as part of efforts to optimise its oil and gas operations in the country, and increase production from its existing assets, both onshore and offshore.

A statement from the company noted that Addax Petroleum has produced over 425 million barrels of crude oil over the 19 years it took over operatorship of Oil prospecting Licenses (OPLs) 98/118, and OPLs90/225 previously operated by Ashland Nigeria Oil Company, which operated the blocks from 1973-1998, a period of 25 years.

It observed that the company as contractor to and on behalf of Addax/NNPC Production Sharing Contract (PSC), achieved this feat “through sustained investment in reserves and production growth activities, application of technology, strong NNPC/DPR partnership and strong partnership with host communities.”

The oil firm also said it is leveraging on its world class technical expertise and application of technology, as the Addax/NNPC PSC has brought various fields on stream. This is in addition to embarking on exploration and appraisal campaign in its adjacent concession areas, resulting in commercial oil discoveries in Ofrima and Udele fields, a project pivotal to Addax growth plans in Nigeria.

Addax Petroleum has a strong track record of developing under-exploited hydrocarbon resources, and has through business drivers hinged on Health, Safety, Security and Environment (HSSE), human capital development, operations excellence and capital efficiency achieved this feat.

As part of its production activities, the company recently kicked off its sustenance campaign via current drilling activities in the Njaba field in OML 124 licence area, premised on execution of low cost, capital efficient production optimisation principles and if successful should increase output in that area.

“The first oil producer in this drilling campaign was recently drilled and completed ahead of schedule and at significantly lower cost than budget. Preliminary well test results have also exceeded projected average oil production potential,” the statement said.

Since the 2009 SINOPEC takeover, Addax/NNPC PSC has invested over $5billion, and generated over $7billion for the Nigerian government, investments that has over the years resulted in job creation for residents in its host communities, and funding critical community projects in the areas of agriculture, health, and education.

The company also pioneered the institution of a micro credit scheme, where over 480 women have been empowered to develop their small scale businesses, through a revolving loan scheme initiated to empower small scale business women within its OML 124 host communities.

The Technical Skill Acquisition Programme (TSAP) has enabled community youths within its host communities in Imo, Akwa Ibom and Rivers States, to be trained at the Federal Technical College, Omoku, in Rivers State, on selected vocations. Upon graduation, Addax Petroleum donated tools and equipment to assist them set-up small scale businesses in their chosen vocation, a scheme in which significant amount has been expended, in addition to tertiary and post primary education scholarships and uplifting of educational infrastructure within its host communities.

Furthermore, Nigerian Content Development remains one of Addax Petroleum/NNPC PSCs critical business drivers, as the company ensures total compliance to the requirements of the Nigerian Content Act, but also ensures deliberate utilisation and promotion of local industry goods and services to support its exploration and production activities. It achieved these initiatives through the tremendous support of the Nigerian Content Development and Monitoring Board (NCDMB).

This venture has been at the forefront of building local capacity, supporting and developing local contractors, and making huge investments in training and development of Nigerian. It currently has 255 full-time Nigerian in its direct employment as well as another 380 Nigerians contractor staff.

The Addax/NNPC PSC agreement has a continuous commitment to Research and Development with partnerships established with the University of Benin, and University of Port Harcourt, to host both its academia and students through structured research and development (R&D) intervention programmes.

According to the company, “Its future in Nigeria remains very bright with a planned investment outlay of $3-5billion. Indeed, growth and profit enhancement opportunities within its existing licence areas, and further onshore and onshore drilling and development activities are planned for next year and beyond.”

Addax Petroleum since 2009, has been a wholly owned affiliate of the Chinese entity, Chinese Petrochemical Company (SINOPEC), bringing this to bear on positive Sino-Nigeria relationship.

Receive News Alerts on Whatsapp: +2348136370421

No comments yet