Ainojie ‘Alex’ Irune, MD, Oando Energy Resources
Speaking in a panel session at the Nigeria International Energy Summit (NIES), Managing Director, Oando Energy Resources, Ainojie ‘Alex’ Irune, was of the view that the fundamental things about post-divestment is that everyone involved should be serious.
He reiterated that Nigeria must continue to increase production for sustainability and energy security.
In his words: “As a country, when we hit the lows of a million barrels, 700 was what I had, but a million is what we say pretty much was our lowest point, I think at that point everyone realised we were on our way to bankruptcy as a country.
“And if we didn’t do something about it, then we would certainly not be able to tell a history that represents some of the efforts brought to bear.”
According to the Oando boss, this resonated with not just the regulator, but the International Oil Companies (IOCs), local indigenous companies, all the parties involved adding for the first time there is a true alignment in purpose.
“Now of course we’re not getting everything right and there’s still a journey to walk on that piece, but what I see in the singular thing is that we’re all aligned in the fact that,” he said.
Irune pointed out that the idea that “our crude or gas or any of our commodities will not make it to sell point is sacrilegious in the highest regard, in the sense that it shouldn’t be the case”.
“So you see the security forces, IOCs, regulators, local companies, building the capacity to tackle these problems and we can only do it together.”
The country moves forward as independents who have acquired these companies, there’s the need to be clear on, talking about hand-holding and how the country must continue to ensure it is a collaborative future.
“How do we do it collaboratively? When we’re thinking of terminals and infrastructure, how do we share, and for us, those are the big changes, working together, the alignment.
When I go out to look for a rig, and saying what are the things we have to do and how we should do it, when I’m thinking of security, I’m thinking the same.”
Irune said a brownfield development would need to be sensible about cost adding for those molecules to get to the sell point.
If you take those two components alone, the cost base of the larger companies, the IOCs, just can’t carry the job.
Irune spoke about Oando the company optimizes a base, which is to improve every single molecule behind pipe and get it flowing through the company’s local engagements, working with the security forces and ensuring that the company has a sustained flow which is significant for production growth
“That’s typically what impacts your average and all the other elements that we calculate numerically for production,”
Oando has a lean approach to project execution. “And I say lean because, again, we’ve dealt with the issues of bureaucracy. We’ve seen the presidential executive orders come to address some of those issues.
“But we’re planning and engaging more. We have a very clear idea of what we’re going to do over the next five years. We’re planning for what we’re going to do over the next three years,” he stated.
According to him, as a country, “we certainly don’t have the runway not to hit those barrel targets that we’ve set ourselves. So for us, everything is relatively urgent. So the cycle time for the executions is much shorter than we’ve experienced in the past,” he said.
Irune said that engagement has to be robust, it has to be true, and it has to be focused on improving the current state to a future that we can paint and deliver to the world.
The host communities play a big part in the ability to deliver.
Irune stated further: “For Oando, that is very important because in some of its other marginal field assets, it’s been able to achieve. So taking that over and replicating that on a much larger scale is our goal.
The time has started. I think the industry’s clock has just been reset. We truly hold the future of this country in our hands, the future of any forms of divestment and truly prosperity for Nigerians.”
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