In a landmark deal set to reshape Nigeria’s oil and gas landscape, Aiteo Group has successfully acquired Oil Mining License 29 (OML 29) and the Nembe Creek Trunk Line from Shell Petroleum Development Company (SPDC) for $2.7 billion.
The transaction, one of the largest oil asset divestments in Nigeria’s history, strengthens Aiteo’s position as a key player in the country’s energy sector. With this acquisition, Aiteo now controls one of the most lucrative oil blocks in the Niger Delta, alongside a critical crude transportation pipeline that plays a major role in Nigeria’s oil export infrastructure.
A Major Milestone in Indigenous Oil Ownership
Aiteo’s Head of Communications, Oseyemi Oluwatuyi, confirmed that while the acquisition cost for the oil block and pipeline was $2.562 billion, the remaining funds have been allocated as working capital to facilitate operations and development.
OML 29 boasts an estimated 2.2 billion barrels of oil equivalent (BOE) in reserves, with hydrocarbon fields capable of producing 160,000 barrels per day (bpd) of crude oil and 300 million standard cubic feet per day (MMSCF/D) of natural gas at peak output.
Aiteo leads the consortium responsible for the deal, holding an 85% controlling stake. While Taleveras was involved in brokering the transaction, it does not hold a leading position, contrary to earlier reports. The share breakdown in the consortium includes:
•Aiteo Energy Resources Limited: 2.294 billion shares
•Tempo: 270 million shares (10%)
•Taleveras: 135 million shares (5%)
The deal marks a turning point for indigenous participation in Nigeria’s oil industry, reducing foreign dominance and aligning with the Federal Government’s Nigerian Content Development policy.
Strategic Importance of the Nembe Creek Pipeline
The Nembe Creek Trunk Line, spanning 60 miles, is one of Nigeria’s most vital crude oil export pipelines, transporting crude from the Niger Delta to the Atlantic coast. This infrastructure is not only a strategic asset for Aiteo but also serves as a crucial export route for several oil-producing companies in the region.
Aiteo’s acquisition of the pipeline further strengthens its role as a major oil transportation provider, offering access to other oil producers seeking export routes. This development enhances Nigeria’s local capacity in crude oil transportation, a segment previously dominated by international oil firms.
Expanding Beyond Oil and Gas
Aiteo’s acquisition is a bold step in its larger vision of becoming a fully diversified conglomerate. The company is expanding its investment footprint beyond oil exploration into:
•Power generation
•Mining
•Agriculture
•Financial services
•Real estate and infrastructure development
Boosting Local Content & Job Creation
The deal is a significant win for Nigeria’s local content policy, which promotes indigenous ownership and participation in the oil and gas industry. The Nigerian Content Development Monitoring Board (NCDMB) has confirmed that since the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act, 2010) was enacted, over 87% of pipeline fabrication and construction contracts have been awarded to Nigerian firms.
Aiteo’s investment is expected to create over 20,000 direct and indirect jobs, further stimulating Nigeria’s economy and reinforcing the company’s commitment to national development.
A New Era for Nigeria’s Oil Sector
Industry analysts view Aiteo’s $2.7 billion acquisition as a bold statement of intent, positioning the company as a formidable force in Nigeria’s upstream oil sector. As international oil companies continue to divest from onshore assets, indigenous firms like Aiteo are stepping in to fill the gap, ensuring local participation and control over Nigeria’s vast oil wealth.
With the acquisition of OML 29 and the Nembe Creek Pipeline, Aiteo is now at the forefront of Nigeria’s energy future, strengthening its role in oil production, export logistics, and economic growth.
