Aiteo

Aiteo Group
Limited liability company
Industry Oil and gas
Predecessor Sigmund Communecci (1999)
Founded February 2008 (2008-02)
Headquarters Lagos, Nigeria
(Headquarters)
Key people
 Benedict Peters (Founder/ Executive Vice Chairman)
Products Oil and Gas, Power Generation
Website www.aiteogroup.com

Aiteo Group is an integrated, global-focused Nigerian energy conglomerate founded in February 2008. The company is the successor entity to Sigmund Communnecci Limited.[1] The company has significant business interests 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 (AEEPCo) and Aiteo Power. The Group is owned by Benedict Peters.[2] Its business activities are conducted from several Nigerian locations, including international financial capitals; United States, United Kingdom, Switzerland and Brussels.

Background

Founded in 1999, Sigmund Communecci was a petroleum products supply and trading company. It owned and operated a petroleum storage terminal in Abonemma Wharf.[3] To fully explore growing business opportunities in the petroleum upstream sector in Nigeria, In February 2008, Sigmund Communecci was restructured, re-positioned and re-branded to ensure it sustainably builds the capacity to diversify globally, attract and nurture top talent, leveraging on strategic alliances and technology.

Operations

Downstream Operations:

Aiteo owns and operates petroleum storage facilities in Lagos and Port Harcourt.,[4] including the Abonnema Storage Terminal (“Port Harcourt Tank Farm”), with total capacity of over 110 Million Liters. It constructed a jetty to accommodate growing vessel traffic to the Port Harcourt Terminal, which accommodates up to 30,000 metric tons dead weight. in the first quarter of 2011,[5] Aiteo was one of the 32 companies issued permits to import petrol, under the Refined Products Exchange Agreement. Aiteo Group was among the Nigerian companies awarded oil lifting contracts, in the Federal Government's bid, through the Nigerian National Petroleum Corporation, to award nearly half of 2012/2013 oil lifting contracts worth $40 billion to indigenous companies and in the process, promoting local content on one hand and "downsizing contracts awarded to international oil traders. In its own right and also at the request of Duke Oil, the company entered into a Management and Operation Agreement with Duke Oil ”to operate and manage its Crude and Product Exchange Agreement" with NNPC and Pipelines Product Marketing Company (PPMC) from February 2011; an operation which lasted until December 2014. These were landmark transactions in the Nigerian Oil sector.

Upstream Operations:
'Aiteo is one of the indigenous Nigerian companies that took advantage of the exit of major international oil companies, like Chevron, ConocoPhillips and Shell that put up their Nigerian onshore licences for sale. In 2014, Aiteo, leading an indigenous consortium, successfully bid for and acquired Shell’s OML29 and Nembe Creek Trunk Line for $2.7 billion.[6] 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 OML29 and the Nembe Creek Trunk Line, Aiteo holds the controlling 45% stake in both assets,[7] for which it paid $569 million for Total SA's stake.[8]

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".[9] "Oil and gas industry investment analysts says 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."[10]. 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%.[11]

Power Sector:
Aiteo's interest in the Power sector is operated through its subsidiary; Aiteo Power and Gas which has Dr. Ransom Owan as its Group Managing Director.[12] Dr. Owan was the pioneer Chairman & Chief Executive Officer (CEO) of the Nigerian Electricity Regulatory Commission (NERC).[13]

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. Having made a bid of $312.5 million, Aiteo was the reserve bidder.[14] and was shortlisted for the following plants: Egbema Generation Company, Olorunsogo Generation Company and Omoku Generation Company.[15] The same consortium became the preferred bidder for Benin and Calabar Generation Company's, with a bid of $580 million and $625 million respectively.[16] Aiteo holds leading interest in the consortium that won the bids to acquire the following power plants:

  1. Alaoji Generation Company - preferred bidder with a bid of $902,000,000.00
  2. Benin Generation Company - preferred bidder with a bid of $580,000,000.00
  3. Calabar Generation Company - preferred bidder with a bid of $580,000,000.00[17]

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. ↑ "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.
  7. ↑ "Shell completes sale of OML 29, Nembe Creek pipeline in Nigeria". Reuters.com (Thompson Reuters). 25 March 2015. Retrieved 22 February 2016.
  8. ↑ "Total Factbook 2014" (PDF). 2014: 3. Retrieved 22 February 2016.
  9. ↑ Owolabi, Tife (22 May 2015). "UPDATE 2-Nigerian youths halt some crude output in Nembe oilfield". Reuters.com (Thompson Reuters). Retrieved 22 February 2016.
  10. ↑ "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.
  11. ↑ Adebowale, Yemi (11 October 2014). "Aiteo-led Consortium, Not Taleveras Acquired OML 29 from Shell". Thisday Newspapers (Leaders & Company Limited). Retrieved 22 February 2016.
  12. ↑ 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.
  13. ↑ "Ransome Owan". Nigeria Power. CWC Group Limited. Retrieved 22 February 2016.
  14. ↑ 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.
  15. ↑ Udo, Bassey (7 March 2014). "Nigerian Government opens bids for ten power generation plants". Premium Times (Premium Times Services Limited). Retrieved 22 February 2016.
  16. ↑ "NIPPs: Dashed Hopes and Unfulfilled Promises". Thisday Newspapers (Leaders & Company Limited). 10 March 2015. Retrieved 22 February 2016.
  17. ↑ Onwuli, Amaka. "NIPP Transaction – Preferred Bidders". NIPP Transaction. Niger Delta Power Holding Company Limited. Retrieved 22 February 2016.
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