Mergers, others to drive growth in petroleum industry

Salamatu Ejembi, Lagos


Mergers, acquisitions and divestments in the oil and gas industry are capable of promoting efficiency and further drive growth.

This is according to Mr. Mascot Ogunjemiyo, Guest Speaker at the Nigerian Association of Petroleum Explorationists (NAPE) January Technical/Business Meeting on Mergers, Acquisitions and Divestments in E&P Business held in Lagos on Wednesday.

Ogunjemiyo also highlighted the various merger and acquisition cases in the Nigerian oil and gas industry so far.

Chief Executive Officer of Seplat Petroleum Development Company Plc, Mr. Austin Avuru who chaired the meeting, said his company remains committed to more asset acquisitions in the exploration and production space, and to organic growth.

Addressing stakeholders at the NAPE meeting, he said Seplat had positioned itself as an early mover through the acquisition of a 45% operated interest in OMLs 4, 38 and 41 from Shell, Total and Agip in 2010; thus, becoming the first Nigerian independent to acquire a package of oil and gas blocks directly from the Major International Oil Companies (IOCs) as part of a disposal process.

Following this landmark deal in 2010, Seplat further grew its portfolio through the acquisition of a 40% interest in the OPL 283 marginal field area from Pillar Oil. In 2015 acquired further interests in OML 53 and OML 55 from Chevron Nigeria Limited.

Seplat grew production at OMLs 4, 38 & 41 from 14,000bopd as at acquisition to a peak rate of over 84,000bopd.

NAPE is the largest professional association of petroleum geologists and related disciplines in Nigeria and Africa.

Members include geologists, geophysicists, CEOs, Manages, consultants, students and academicians.

Suzan O