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Aiteo

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Aiteo Group
Company typeLimited liability company
IndustryOil and gas
PredecessorSigmund Communecci (1999)
FoundedFebruary 2008; 16 years ago (2008-02)
HeadquartersLagos, Nigeria
(Headquarters)
Key people
Benedict Peters (Founder/Vice President)
ProductsOil and Gas, Power Generation
Websitewww.aiteogroup.com

Aiteo Group is a Nigerian integrated energy company founded in February 2008. The company was formerly Sigmund Communnecci Limited.[1] The company's business operations is in oil and gas exploration and production; bulk petroleum storage; refining of petroleum products; trading, marketing and supply as well as power generation and distribution. Its subsidiaries are Aiteo Eastern Exploration and Production Company Limited and Aiteo Power. Aiteo Group is owned by Benedict Peters.[2]

Background

Founded in 1999, Sigmund Communecci was petroleum products supply and trading company. It owned and operated a petroleum storage terminal in Abonemma Wharf.[3] In February 2008, Sigmund Communecci became Aiteo.

Operations

Downstream Operations:
Aiteo owns and operates petroleum storage facilities in Lagos and Port Harcourt.[4] the Abonnema Storage Terminal (“Port Harcourt Tank Farm”), with a total capacity of over 110 Million Liters and constructed a jetty to accommodate growing vessel traffic to the Port Harcourt Terminal that accommodates up to 30,000 metric tons dead weight. In 2013, Aiteo was one of the 32 companies issued permits to import petrol in the first quarter of the year.[5]

In 2011, under the Refined Products Exchange Agreement (RPEA), Aiteo was one of the companies that entered into subcontracts with Duke Oil (Panama) Ltd. Aiteo 30,000 Oil allocation (barrels per day) for a duration of 2011 - 2014 and 2015 - 2016. Under an Offshore Processing Agreement (OPA), Aiteo was allocated 90,000 Oil allocation (barrels per day) for the duration 2015 - 2016[6]

Upstream Operations:
'Aiteo is one of the indigenous Nigerian companies that has taken advantage of the exit of major international oil companies, like Chevron, ConocoPhillips and Shell who are putting up their Nigerian onshore licences for sale.[7] In 2014, Aiteo, leading an indigenous consortium, successfully bid for and acquired Shell’s OPL 29 and Nembe Creek Trunk Line for $2.7 billion.[8] With its acquisition of Royal Dutch Shell Plc's 30% stake as well as Total SA of France and Eni of Italy minority stake in OML 29 and the Nembe Creek Trunk Line, Aiteo holds the controlling 45% stake in both assets.[9] Aiteo paid $569 million for Total SA's stake.[10]

OML 29 includes Nembe, Santa Barbara and Okoraba oil fields. According to Shell, "combined production averaged around 43,000 barrels per day of oil equivalent in 2014".[11] "Oil and gas industry investment analysts say Aiteo Group’s investment is a demonstration of its commitment to the continuous growth and development of the country’s oil and gas sector in accordance with the law enacted in April 2010."[12]

Aiteo holds a controlling equity stake holding of 85% in the consortium that acquired OML29. The other members of the consortium include Tempo Energy Resources - 10% and Taleveras - 5%.[13]

Power Sector:
Aiteo interest in the Power sector is operated through its subsidiary: Aiteo Power and Gas which has as its Group Managing Director, Ransome Owan[14], the pioneer Chairman & Chief Executive Officer (CEO) of the Nigerian Electricity Regulatory Commission (NERC).[15]

An Aiteo led consortium was the sole bidder for the Alaoji Power Plant. It won the bid with a $902 million fresh bid after its first bid did not meet the plant's reserved price. With a bid of $312.5 million, Aiteo was the reserve bidder. [16] Aiteo was shortlisted for the following plants: Egbema Generation Company, Olorunsogo Generation Company, Omoku Generation Company.[17] EMA Consortium is the preferred bidder for Benin Generation Company with a bid of $580 million and for Calabar Generation Company with a bid price of $625million.[18] Aiteo is the leading interest in the EMA Consortium.


References

  1. ^ "The Rise of Nigerian Oil and Gas Companies". ThisDay Newspapers. Leaders & Company Limited. 10 May 2014. Retrieved 21 February 2016.
  2. ^ Adebowale, Yemi (11 October 2014). "Aiteo-led Consortium, Not Taleveras Acquired OML 29 from Shell". Thisday Newspapers. Leaders & Company Limited. Retrieved 22 February 2016.
  3. ^ Awaji, Justus (3 July 2011). "Compensation: Rumuwoji, Abonnema Wharf Residents Sing Discordant Tunes". The Tide Newspaper. The Tide Newspaper Corporation. Retrieved 21 February 2016.
  4. ^ "AITEO – Investing in Nigeria's Future". Petroleum Industry Review. Petroleum Industry Review. Retrieved 21 February 2016.
  5. ^ Amanze-Nwachuku, Chika; Alike, Ejiofor (11 January 2013). "NNPC, Oando 30 Others Get Q1 Fuel Import Permits". Thisday Newspaper. Leaders & Company Limited. Retrieved 21 February 2016.
  6. ^ Sayne, Aaron; Gillies, Alexandra; Christina, Katsouris (August 2015). "Inside NNPC Oil Sales: A Case for Reform in Nigeria" (PDF): 42–43. Retrieved 22 February 2016. {{cite journal}}: Cite journal requires |journal= (help)
  7. ^ Barbuscia, David; McQue, Katie (31 July 2014). "Departure Of Supermajors From Nigeria's Oil Sector Prompts Local Financing Shift". Forbes. Forbes.com LLC. Retrieved 22 February 2016.
  8. ^ "AITEO acquires Shell's OPL 29, Nembe Creek pipeline for $2.7 billion". Premium Times. Premium Times Services Limited. 12 October 2014. Retrieved 22 February 2016.
  9. ^ "Shell completes sale of OML 29, Nembe Creek pipeline in Nigeria". Reuters.com. Thompson Reuters. 25 March 2015. Retrieved 22 February 2016.
  10. ^ "Total Factbook 2014" (PDF). 2014: 3. Retrieved 22 February 2016. {{cite journal}}: Cite journal requires |journal= (help)
  11. ^ Owolabi, Tife (22 May 2015). "UPDATE 2-Nigerian youths halt some crude output in Nembe oilfield". Reuters.com. Thompson Reuters. Retrieved 22 February 2016.
  12. ^ "AITEO acquires Shell's OPL 29, Nembe Creek pipeline for $2.7 billion". Premium Times. Premium Times Services Limited. 12 October 2014. Retrieved 22 February 2016.
  13. ^ Adebowale, Yemi (11 October 2014). "Aiteo-led Consortium, Not Taleveras Acquired OML 29 from Shell". Thisday Newspapers. Leaders & Company Limited. Retrieved 22 February 2016.
  14. ^ Ugwu, Chidi. "'It's shame that Nigeria has new power plants, but no gas to fire them'". National Mirror. Global Media Mirror Limited. Retrieved 22 February 2016.
  15. ^ "Ransome Owan". Nigeria Power. CWC Group Limited. Retrieved 22 February 2016.
  16. ^ Esiedesa, Obas. "Home » News » FG sells 10 NIPP plants for $5.8b FG sells 10 NIPP plants for $5.8b". Daily Independent. Independent Newspapers Limited. Retrieved 22 February 2016.
  17. ^ Udo, Bassey (7 March 2014). "Nigerian Government opens bids for ten power generation plants". Premium Times. Premium Times Services Limited. Retrieved 22 February 2016.
  18. ^ "NIPPs: Dashed Hopes and Unfulfilled Promises". Thisday Newspapers. Leaders & Company Limited. 10 March 2015. Retrieved 22 February 2016.
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