July 06, (THEWILL) — The strategic investment in frontier energy infrastructure by the Aiteo Group will contribute towards achieving the Nigerian government’s objective of boosting production and stabilising the oil and gas sector.
The Nigerian oil and gas sector is anticipated to expand and stabilise in 2025, with focus on increasing production, attracting investments and enhancing regulatory frameworks.
Key initiatives include the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) aiming to boost active oil rigs and production targets, alongside efforts to attract both local and international investors through new licensing rounds. The active participation by indigenous companies, including Aiteo, is also critical.
The Aiteo group has stepped up involvement in the oil and gas industry with strategic investments that have expanded its operations, contributing meaningfully to Nigeria’s economic development. This is exemplified by the active operations of the Nembe Exploration & Production Company.
Nembe is the flagship upstream subsidiary of the Aiteo Group and the Operator of the OML29 Asset and the over 110km, 600Kbbl/d capacity Nembe Creek Truckline (NCTL).
THEWILL recalls that the Aiteo group acquired the 45 percent private interests of Shell, Total and Agip on the block and the trunkline. The acquisition was through Aiteo Eastern E&P Ltd, renamed in Q2, 2025 to Nembe E&P Ltd.
At the takeover of operations of the assets, Aiteo was able to quickly ramp up production from below 25kboe/d to over 90Kboe/d in less than one year to demonstrate its capacity to expand and deepen operations in the sector.
Following the prolonged negative impact of sustained oil theft and its twin-evil – pipeline vandalisation, which resulted in over 90 percent production loss, the group had to re-strategise. It changed its operating model to secure its production and protect value for the joint venture.
“We went into strategic partnership with the Nembe Crude Oil Export Terminal who invested in and set up an alternative evacuation system for us. This new evacuation system comprises an FSO of 2Mbbl capacity offshore terminal and a fleet of five 38Kbbl capacity shuttle vessels, a temporary CPF complete with all other necessary ancillary equipment.
“A permanent CPF and underwater pipeline are currently under construction to provide a permanent solution and give impetus to our production growth aspirations,” the company said in a note.
To sustain the growth trajectory, the company has stepped up the execution of its next developmental phase which involves scaling up oil production to 150,000 bpd and gas utilisation to over 200million scf/day. This is “positioning us as one of Nigeria’s leading independent oil and gas producers, a position we currently enjoy. We are investing in other frontier energy infrastructure like, refining, natural gas utilisation, and so on, all designed to secure Nigeria’s energy future,” Aiteo added.
As part of the objective of the Nigerian government to boost production and increase investment in the sector, the NUPRC plans to raise the number of active oil rigs from 36 to 50 by the end of 2025, signaling a push to ramp up upstream activities.
The NUPRC has also set a target of at least 2.1 million barrels of oil per day (MBOPD) by 2025, with Nigeria seeking to secure more Final Investment Decisions (FIDs) in 2025 to bolster investor confidence, with a focus on deep offshore oil and gas investments.
Indigenous companies are expected to strengthen their presence in upstream operations amid an improved regulatory environment as the NUPRC planned a fresh oil bid round in 2025 to attract investors. The NUPRC has also introduced a two-phase metering regulation to improve accuracy in hydrocarbon measurement.
THEWILL reports that indigenous Nigerian energy firms are braving the odds to go beyond Nigeria by establishing in the bowels of the continent where Aiteo now plays a prominent role.
The foremost Nigerian energy independent, Aiteo, had bought a stake in a Mozambique gas block, Mazenga. With this development, Aiteo became the operator of the block which contains some of the biggest onshore gas reserves in sub-Saharan Africa.
Following the deal, Aiteo initiated an intensive development programme involving aeromagnetic and gravitational geological studies, comprehensive field inspections, and reinterpretation and processing of existing data.
“We aim to elevate our profile and expand our global gas resources to meet industry-leading standards within the continent. Our proven track record gives us confidence in our ability to develop these assets, benefiting both Mozambique and all stakeholders,” Benedict Peters, CEO of Aiteo, had stated at the time.
Encompassing an extensive 23,000 km² within Mozambique’s sedimentary basin, the Mazenga block lays claim to an estimated 19 trillion cubic feet of gas reserves.
An oil and gas analyst, Engr. Kanma Daniel, noted that the expansion of Aiteo to the Central and Southern African region is a catalyst towards emerging as a global player.
“Acquiring 45 percent private interests of Shell, Total and Agip on the Nembe block and the trunkline is a major milestone in the wake of indigenous companies bracing for the challenge of acquiring the assets of the IOCs,” Daniel said, adding that the Nigerian local content policy has played a remarkable role in achieving these milestones.
Industry experts emphasise that the strategic acquisition of the formerly owned international oil companies’ facilities by Nigerian investors marks a landmark achievement by indigenous operators. They also consider it a huge opportunity for the Nigerian Content Monitoring and Development Board (NCMDB) to engage more meaningfully in the actualisation of its objective.
The primary objective of NCDMB is to promote and develop Nigerian content in the Nigerian oil and gas industry, ensuring the growth and utilisation of local capabilities, goods, and services.
This year, April 22, 2025, marked the 15th anniversary of the establishment of the Nigerian Content Policy through the Local Content Law signed by former President Goodluck Jonathan on April 22, 2010.
During this period, the scheme has recorded remarkable success that portends rapid economic development through expanding local capacity, creating jobs and boosting foreign exchange earnings.
This formed the strong base for Aiteo and the likes to launch outside the shores of Nigeria as the world becomes a global economic village.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
