Recently updated on February 12th, 2023 at 12:21 pm
For its belief in Nigeria and significant investments in football and community development in the last one year, BusinessDay’s board of editors is pleased to name Aiteo Group as BusinessDay’s ‘Company of the Year 2017’.
In a little over a year, Aiteo Group, a leading energy company in Nigeria, under the leadership of Benedict Peters ramped up crude production to 90,000 barrel per day (bpd) from an average production of the 23,000 bpd after acquiring oil mining lease (OML) 29 for $2.8 billion from Shell at a time when local oil companies struggled to manage divested assets.
OML 29 stretches over an area of 983 square kilometres, and includes the Nembe, Santa Barbara and Okoroba Oil Fields, including related facilities such as the 97-kilometre Nembe Creek Trunk Line (NCTL). It also has a 100 kilometres long pipeline with a capacity of 600 thousand barrels per day.
In March 2015, Aiteo Eastern E&P, a subsidiary of Aiteo Group, acquired SPDC’s interest in OML 29 and the NCTL. Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited – the other joint venture partners – also assigned their 10 percent and 5 percent interests respectively to Aiteo, giving the company a 45 percent interest in OML 29.
The bold acquisition has not only ramped up Nigeria’s crude production to the 1.8 million bpd prior to militant attacks, it has proven that that indigenous companies can successfully operate an oil asset. The company also highlighted several existing and developing projects that could potentially grow its asset production to over 150,000 bpd and 200 million standard cubic feet of gas daily in the near future.
According to Mr. Benedict Peters:
“Our outlook is bright with 3 producing oil fields and viable crude exports via Bonny terminal. We also have contingent resources to appraise and prospective ones to explore in the medium-to-long term, including full 3D seismic coverage and 2P NNS reserves of more than 1.6bn bbl. Put simply, we have a clear vision for the future with the experience and assets crucial to providing oil and gas consistently on a regional and global scale.”
Some months down the line, this legacy achievement is impacting lives and has created significant direct and indirect employment in Nigeria’s highly competitive oil and gas industry.
Aiteo Group legitimately secured the oil bock after a keenly contested but transparent divestment bid driven by Shell. The funding of Aiteo’s acquisition was made possible through a combination of debt and equity involving several Nigerian and international banks. All these entities conducted stringent and substantial due diligence before backing the Aiteo Consortium’s bid for the oil block, adjudged one of the most transparent in the history of Nigeria.
Aiteo Group, since its formation in 1999 by Benedict Peters, has transformed into Nigeria’s pre-eminent energy conglomerate with an international focus. It is leading the vanguard with innovative solutions and strategic investments across the energy value chain – petroleum products storage and distribution; natural gas, power and exploration as well as production. The Group’s subsidiaries include Aiteo Eastern Exploration and Production Company Limited (AEEPCo), Aiteo Downstream and Aiteo Power.
As Executive Vice Chairman, Peters has been responsible for directing the company in terms of strategic development, policy formulation and execution.
In the words of Mr. Peters:
“Our group’s vision is to create the most sustainable energy solutions to power growth on the African continent. By working together, we inspire people and communities across Africa to have a collective vision; Aiteo is showing its commitment to encouraging a transformed energy sector which creates health and wellness as well as resilient economic prosperity across its stakeholders.
We have shown by our story that indigenous oil companies are competent enough to participate along with international oil majors in the exploration and development of Nigeria’s hydrocarbon resources, beyond the provisions of the 2010 local content act.”
In the last one year, Aiteo Group has also made significant investments in sports development. In April 2017, the company announced a record ₦2.5 billion partnership agreement with the Nigerian Football Federation (NFF) to pay the salaries of the Super Eagles’ coaching crew at ₦500 million per annum for the next five years. This social investment, which covers all the local and foreign components of the NFF’s financial obligations for the main team, earned the company the title ‘Official Optimum Partner of the NFF.’
This decision has made a two-pronged impact. It has put paid to the problem of delayed payments affecting the morale of our coaches and the Super Eagles’ performance, resulting in Nigeria’s qualification for the Russia 2018 World Cup.
Acknowledging Aiteo’s support for the Super Eagles, NFF President Amaju Pinnick said:
“Our teams are focused and show technical depth and excellence, thanks to AITEO’s financial intervention. The Nigerian soccer team is inspired, confident and relaxed that all bills are paid as opposed to the former times when players and coaches paid for their expenses themselves, all were dejected and most were hardly reimbursed.”
Aiteo Group did not neglect a key player on the national team whose contributions were interrupted by health challenges. It therefore committed to and redeemed a pledged to contribute ₦10 Million towards the treatment of Super Eagles goalkeeper, Carl Ikeme, for every goal scored by the Eagles against the indomitable Lions of Cameroon at the return leg in Yaounde. Ikeme was diagnosed with acute leukaemia in July, 2017.
As an indigenous oil company, Aiteo Group has also made significant contributions towards developing the local football league. In June 2017, the company announced another ₦2.5 billion agreement to underwrite the costs associated with organising the Federation Cup, Nigeria’s equivalent of the English FA Cup and which is the oldest football tournament in Nigeria. The contest, rechristened Aiteo Cup, had been struggling for sponsorship before Aiteo’s intervention. The 5-year package guarantees a monetary reward for the tournament’s best performing teams, with the winner of the men’s category guaranteed ₦25 million as prize money while their female counterparts will get ₦10 million for winning.
In October 2017, Aiteo Group also signed a partnership agreement with the Confederation of African Football (CAF) to sponsor the Annual CAF Awards 2018, which honours footballers who have made outstanding contributions to the development of football development on the continent.
As a tribute to the company’s support for football development, international football governing body, the Federation Internationale de Football Association (FIFA), extended a special invitation to Aiteo’s Deputy Managing Director Francis Peters to attend the recent FIFA Best Football Awards in London.
Aiteo is also committed to host community development. As such, it shares economic benefits with these communities by providing work opportunities, offering training programmes and supporting local businesses.
Aiteo has a clear vision for the future with the experience and assets crucial to providing oil and gas consistently on a regional and global scale. The company is currently developing a pipeline of power generation projects across the country with an ambitious five-year plan which includes transforming the oil-rich Niger Delta region into a power generation hub and ultimately tackling Nigeria’s power challenges through its legacy investments in the gas-to-power value chain. It is also working on developing a 24,000 MT LPG facility in the Delta with associated LPG distributing facilities nationwide.
