Upstream investment: NIPCO plans to hit 30,000 oil barrels per day

The Nigerian Independent Petroleum Company of Nigeria (NIPCO) has commenced its upstream operations with marginal investments in two firms.

This is part of initiatives to boost the company’s production to 30,000 barrels per day.

The Managing Director, Nipco, Mr Venkataraman Venkatapathy, disclosed this at the company’s 10th Annual General Meeting (AGM) on Thursday in Lagos.

Venkatapathy listed one of the companies as Eland Oil with a commercial production of 25,000 barrels per day from Oil Mining Lease (OML) 40.

According to him, the field has capacities to produce about 30,000 barrels of oil per day in the nearest future.

He disclosed that the increasing demand had made it imperative for NIPCO to expand its activities and make investments in upstream assets.

“We have made marginal fields investments in two companies, one of which is Eland Oil which has just declared commercial production of 2,500 barrels of oil per day on Oil Mining Lease (OML) 40,” the managing director said.

He said that the company had made other marginal investments in a promising upstream start up company and was also exploring investment opportunities in firms yet to strike oil.

He said that these investment marked the beginning of the company’s upstream activities.

Venkatapathy said that the company was also looking for opportunities for investment in prospective marginal fields.

According to him, the future looks bright with its strategy of continuously offering competitive prices and increased volume through aggressive marketing.

He said that the company would continue to conduct its business with highest ethical standards in the industry to the delight of stakeholders.

Reviewing the sector in 2013, Venkatapathy said that the period witnessed stable supply of petroleum products through strategic and proactive government support of the downstream sector.

“The transparency and accountability demonstrated by government in handing subsidy payments to marketers through the PPPRA and federal ministry of finance is a welcome initiative and should be sustained.

“In addition the implementation of the Project Aquila, a track tracking policy of the petroleum Equalisation Management Fund (PEF), should pursued to its logical conclusion in the drive to bring sanity to the industry,” he declared .

According to him, these feats have prevented products hoarding, diversion, adulterated oil and other forms of unwholesome practices in the fuel distribution channels across the country.

“ But contrary to the expectations, the Petroleum Industry Bill (PIB) is yet to be passed and the industry is keenly awaiting it,’’ he said. (NAN)