West Africa Exploration and Production Company (WAEP), the upstream subsidiary of Dangote Group, is targeting more than 1.6 billion barrels of oil in place across its Nigerian assets as it prepares to significantly increase production over the next 24 months.

The company intends to boost output from its OML 71 and OML 72 assets while developing infrastructure and arrangements to monetise gas, according to its Managing Director, Olajumoke Ajayi.

Ajayi disclosed the plans while speaking at the African Oil Week Energy Conference in Accra, Ghana, where she explained that WAEP is pursuing a phased development strategy designed to deliver immediate production increases, generate cash flow and reinvest the proceeds into wider field redevelopment.

The planned expansion could increase demand for services across Nigeria’s oil and gas value chain. Local companies involved in engineering, logistics, equipment supply, maintenance, technical services, professional services and other forms of support could see additional opportunities as upstream activity expands.

As part of the programme, WAEP has already executed contracts for three jack-up rigs. Drilling is expected to commence in December as the company works to raise production and extract additional value from its assets.

WAEP is also conducting six field development plan studies. The studies are expected to provide a pipeline of additional projects for development across the company’s portfolio.

The expansion could be particularly significant for Nigerian oil and gas micro, small and medium enterprises (MSMEs), although participation in procurement and supply chains will depend on their ability to satisfy the technical, financial, regulatory and operational requirements of major operators.

Ajayi also highlighted WAEP’s relationship with Dangote Petroleum Refinery and Petrochemicals as another important element of the company’s production strategy. The refinery could provide a domestic market for WAEP’s crude as production rises.

She noted that the refinery is owned by one of WAEP’s shareholders and partners and would require crude as the company increases output. The relationship could further link domestic crude production with refining activities within Nigeria.

WAEP is additionally considering the construction of a dedicated crude evacuation terminal as production grows.

According to Ajayi, the proposed facility could be used by WAEP and other producers looking to aggregate and evacuate crude. Such an arrangement could create further commercial opportunities connected to shared energy infrastructure.

The company’s plans extend beyond production growth. WAEP is working to strengthen its technical and organisational capabilities as it prepares to manage mature and brownfield assets.

Ajayi stressed that African independent oil operators require more than reserves and licences to compete successfully. She identified technical expertise, capital, operational discipline and the capacity to maintain production as essential requirements.

She said WAEP is therefore concentrating on developing the necessary skills and competencies throughout its operations ahead of the company’s next stage of growth.

Within the next 24 months, WAEP expects to significantly raise production while establishing the infrastructure and arrangements required for gas monetisation.

For Nigerian MSMEs, the company’s planned expansion points to potential economic opportunities arising from major energy projects and the demand they create throughout associated supply chains. However, businesses seeking to benefit will need to demonstrate the technical capacity, financial strength and operational standards expected by large oil and gas operators.

As WAEP progresses from asset development towards increased production, businesses capable of delivering dependable and competitive services across the upstream and midstream value chains could benefit from the company’s expanding activities.

Source: msmeafricaonline