Robust Host Communities Engagement Key to Future Production Growth – Irune
At the Nigeria International Energy Summit (NIES), Ainojie ‘Alex’ Irune, Managing Director of Oando Energy Resources, emphasized that robust engagement with host communities will play a critical role in boosting Nigeria’s future energy production.
Speaking during a panel session, Irune stressed the importance of serious commitment from all stakeholders in post-divestment operations, urging that Nigeria must prioritize increasing production to ensure sustainability and energy security.
Reflecting on the country’s recent production lows, Irune stated: “When we hit the lows of a million barrels – with some estimates as low as 700,000 barrels – it became clear that Nigeria was on the brink of economic hardship. If urgent action wasn’t taken, the country’s efforts and potential would be significantly undermined.”
He noted that the alignment of purpose among regulators, International Oil Companies (IOCs), local firms, and security agencies is a positive development, though challenges remain. “For the first time, all parties are united in the belief that crude, gas, or any commodity must reach the sell point without disruption,” he said.
Highlighting the need for collaboration, Irune advocated for shared infrastructure and joint security efforts. He explained that the cost base of larger IOCs makes it difficult to optimize brownfield developments efficiently. In contrast, Oando employs a lean project execution approach, focusing on optimizing existing production and improving molecule flow through local partnerships.
“We have a clear five-year plan, and everything is urgent. Our shorter cycle times will ensure we hit the barrel targets set for ourselves,” he affirmed.
According to Irune, the host communities’ role in securing infrastructure and supporting operations is indispensable. He cited Oando’s success with marginal field assets, expressing the company’s ambition to replicate these achievements on a larger scale.
“Engagement must be robust, authentic, and geared towards delivering a future of shared prosperity. The industry’s clock has been reset, and the future of Nigeria’s energy sector lies in our hands,” he concluded.
