Can you introduce ND Western and outline its assets?

ND Western was created in 2011 as a special purpose vehicle (SPV) to acquire some of Shell’s assets in Nigeria, specifically in OML 34. The company was formed by a consortium including Aradel Holdings, First E&P, Waltersmith and Petrolin Group. The asset has five different fields: two gas fields, Utorogu West and Utorogu East, and the Warri River oil fields. These fields are legacy Shell assets, around 40-50 years old, and are mature fields. Despite their age, they still have substantial value, with about 360 million barrels of crude reserves and two trillion cubic feet of gas reserves. However, the maturity of the fields brings challenges such as increased water, sand breakout, and aging facilities, requiring extensive maintenance to ensure safe and reliable operation.

Can you share more on ND Western’s involvement in the Renaissance Consortium?

ND Western is the lead on the Renaissance opportunity. Since we successfully used the SPV model to acquire OML 34, we replicated this model with Renaissance, involving the same partners, to acquire the remaining Shell assets in the Western Niger Delta. We are at the final stages of technical and commercial evaluations, seeking government approval to finalize the acquisition. This multiyear process requires thorough due diligence and planning to ensure readiness for the transition.

Could the IOC onshore and shallow water divestment process be smoother?

Absolutely, the process could be smoother and quicker. While we understand the government's need for due diligence in asset transfers, delays hinder investment and negatively impact production. Both the seller and the buyer are unable to invest during these delays, causing production to decline. It benefits everyone to reduce the period of reduced investment attention. We are working with the government to improve the process, but much of it is beyond our control.

How are you financing the Renaissance Consortium acquisition, particularly with many banks shying away from hydrocarbon projects?

ND Western has been fiscally responsible, paying off all loans from our initial OML 34 acquisition, putting us in a strong financial position. This fiscal discipline allows us to take on new opportunities, such as the acquisition with the Renaissance Consortium. We have built strong relationships with local Nigerian banks that support us based on our solid performance over the years. This financial strategy and support from local banks have enabled us to fund our projects.

What is ND Western's approach to CSR, especially regarding host communities and security challenges around OML 34?

Our host communities are our most important stakeholders. We implement a Global Memorandum of Understanding (GMoU) to address their needs, involving an open discussion to identify their priorities. We set aside funding to support these initiatives. This framework has been very successful, giving us the freedom to operate smoothly. Although there have been issues, the GMoU framework helps resolve them amicably. For security, we have engaged local communities through surveillance contracts, significantly reducing oil theft and vandalism on our pipelines.

Being an indigenous company, we can better understand and empathize with community issues. Geographical proximity means we can respond more quickly and effectively, addressing issues before they escalate. The decision-making level within our organization involves Nigerians, which helps in building better relationships and responding promptly to community concerns.

What opportunities do you see in the gas space as Nigeria approaches the midway point of the Decade of Gas?

ND Western is fundamentally a gas company, focused on getting gas to market to power the economy. We are the second-largest gas supplier in Nigeria and aim to double our gas production. We have embarked on facility maintenance and infield drilling to increase gas flow to the market. We recently completed a 14-day shutdown for asset integrity work, which will allow us to process more gas. Our primary focus is to enhance gas production and bring more gas to market to support Nigeria's power sector and overall economy.

Do you have a final message?

We are focused on building organizational capability and addressing the talent gap through career development, technical training, and succession planning. Recognizing the industry's talent shift, we are implementing an integrated training program to serve both ND Western and our industry partners. Developing our people is crucial for achieving our goals and sustaining our success in the Decade of Gas.