September 07, (THEWILL) — West Africa Exploration and Production Company, WAEP, an upstream subsidiary of the Dangote Group, is stepping up efforts to unlock more than 1.6 billion barrels of oil across its Nigerian assets as it moves to revive production from the fields.
The company’s Managing Director and Chief Executive Officer, Olajumoke Cecilia Ajayi, disclosed this at the AOW Energy Conference in Accra, Ghana, during a session titled, ‘The Future of the African Operator: Building the IOCs of Tomorrow’.
Ajayi said WAEP’s Oil Mining Leases 71 and 72, previously operated by Shell, represented a significant resource opportunity, with more than 1.6 billion barrels of oil in place and about 1.9 trillion cubic feet of gas based on discoveries to date.
She said the company had adopted a phased development strategy focused initially on quick production gains and cash generation before reinvesting proceeds into broader field redevelopment.
“The first thing is to look at the low-hanging fruit, the short-term oil gains, generate cash flow from that, put it back into the assets and start redevelopment”, she said.
A representation of rigs. Photo credit: LinkedIn: Petroleum Engineers Association
Ajayi said WAEP had entered the execution phase of its development programme after signing contracts for three jack-up rigs, with drilling scheduled to commence in December.
She said the drilling campaign would help ramp up production and unlock additional value from the assets, while six field development plan studies currently underway would support a series of developments across the OML 71 and OML 72 portfolio.
The company is targeting consistent production growth rather than short-term output gains, with Ajayi stressing the need to maintain production once volumes are increased.
READ ALSO:
- Dangote Says Economic Reforms Are Driving Nigeria’s Recovery
- Dangote Refinery Sets Monday IPO, Targets $50bn Valuation
- Dangote Refinery Gets SEC Approval For ₦525/Share IPO
A representation of crude. Photo credit: Shutterstock
WAEP is also exploring opportunities to supply crude from its assets to Dangote Petroleum Refinery as production rises, potentially deepening the integration between the group’s upstream and downstream operations.
Ajayi noted that Dangote Refinery, owned by one of the shareholders in the upstream assets, would have a significant requirement for crude as production increases.
The arrangement could strengthen domestic crude supply to the 650,000-barrels-per-day refinery while supporting Nigeria’s broader effort to retain more value from its hydrocarbon resources.
Managing Director and Chief Executive Officer, Olajumoke Cecilia Ajayi
Beyond oil production, WAEP is working towards establishing gas monetisation infrastructure and a dedicated terminal for crude evacuation as output increases.
Ajayi said the proposed terminal could potentially support other producers by allowing them to aggregate and evacuate crude through the facility.
She added that WAEP was strengthening its technical and organisational capacity to manage mature assets and sustain production.
The company expects gas monetisation to be in place within the next 24 months, alongside consistent production growth across its assets.
“Not produce today; tomorrow you are down. Consistent, sustained production”, Ajayi said.
