Business

Nigeria hopeful of improved oil output as OML 17 production hits 50,000bpd

Nigeria’s daily crude oil production volume appears to have received a boost from improved production from the recently acquired OML 17, by Tony Elumelu, having risen to 50,000 barrels a day from the initial 27,000 barrels a day at the time of acquisition.

With increased production, Nigeria is hopeful of improved earnings and capacity to shape geopolitics, especially in the area of energy security and transition.
Heirs Holdings, in partnership with affiliated company Transnational Corporation of Nigeria Plc (“Transcorp”), acquired a 45 per cent participating interest in Nigerian oil licence OML 17 and related assets, through TNOG Oil and Gas Limited (a related company of Heirs Holdings and Transcorp), from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI. The remaining 55 per cent stays with NNPC.

At the time of the deal, production was around 27,000 barrels per day, with the existing infrastructure designed for 100,000 barrels per day, a peak reached in the past before a slow decline. Proven and probable (2P) reserves, according to Elumelu, are around 1.2bn barrels.

The OML 17, located in the Port Harcourt region, includes a set of 15 onshore wells (oil and gas), including six active wells and related oil infrastructure.

Speaking during a mentoring session in Lagos, yesterday, Elumelu stated that efforts are being intensified to ensure that production at the facility is at the optimum level.

He also urged entrepreneurs to avoid expensive capital, when exploring options for business growth.

“Don’t take money for social consumption, rather for growth. If you take money, let it be for productive purposes and strictly for the business and get it at a good rate. There are some terms and conditions that can kill a business.

“When we started, we took over a distressed bank and turned it around. No one at that time was willing to give money to buy a distressed bank. There are some aspirations of entrepreneurs that might not be achievable without proper funding.

“Expensive capital should be avoided in order to be able to grow without stress.

Having fears as an entrepreneur is normal. However, only the paranoid succeed in business. You need to develop self-confidence and face your fear”, he added.

He also emphasized the need for businesses to invest in improving customer experience in order to retain value.

Elumelu charged entrepreneurs not to relent on their aspirations, especially as new challenges arise, adding that business is not about profitability alone but also for the social good of society.

According to him, stretch your ambitions and do not get complacent after accomplishing certain goals until you expand to new markets and conquer the world.
On expansion and growth, he advised entrepreneurs to invest in human capital, especially in getting the right talents that will assist the business to achieve the right productivity.

“The marketplace is changing and a lot needs to be done to succeed in the market. People-factor in business cannot be ignored. How they are onboarded, the right policies, environment and good measurement systems, as well as appropriate reward systems are key for many businesses.

“Assembling the right team and people dispassionately is key. Have zero tolerance for defiance of people deviating from a set path. Leaders should replicate themselves among followers.”

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