The worst disruptions in Nigeria's oil-producing Delta
region are over, and production could reach 2.2 million barrels per day (bpd)
by the end of June, the chief executive of Nigeria's Oando said on Wednesday.
Oando chief Pade Durotoye told the Africa Independents Forum
in London the long-closed Forcados oilfield could be back to capacity by the
end of June, enabling a return to nearly full production from what is typically
Africa's largest oil exporter.
"We think that the worst is behind us," Durotoye
said. "Before the end of June, we will have Forcados back, which would
take us comfortably back to 2.2 million bpd."
Attacks in the Niger Delta had pushed production to just
over 1 million bpd at certain points last year, the lowest in decades, but
attacks have abated since the start of the year.
The first Foracdos cargo from the main Trans Forcados export
line loaded last week, though operator Royal Dutch Shell has said force majeure
remains in place.
Durotoye said "bold actions" by the government to
address security in the area had helped, and that if it continued, Oando could
boost output from 50,000 bpd to 150,000 bpd within 12-18 months.
Still, Durotoye said concerns over more violence was leading
investors to view the region with a lot of caution.
"Capital is still going to be constrained," he
said.
Durotoye also said Nigeria's long-delayed Petroleum Industry
Bill (PIB), which governs everything from the operations of state oil company
NNPC to fiscal terms on oil exploration projects, was moving at a more assured
pace.
"We expect approval sometime in the second half of the
year," Durotoye said.
Uncertainty over fiscal terms has held back upstream
investment, especially in capital-intensive deepwater offshore. Durotoye said
that PIB approval would "put some (investor) concerns to bed."
(REUTERS)
