Canada’s Africa Oil Corporation is set to double its oil production in Nigeria, reaching approximately 35,000 barrels per day, following the completion of its full acquisition of Prime Oil & Gas Coöperatief. The landmark deal, set to close next Tuesday, significantly enhances Africa Oil’s footprint in Nigeria’s deepwater oil sector, with indirect stakes in high-value offshore fields operated by TotalEnergies and Chevron.
Strategic Expansion in Deepwater Assets
The acquisition of Prime Oil represents a major shift in Africa Oil’s operations, doubling both its production and reserves while strengthening its liquidity position. Chief Commercial Officer Oliver Quinn described the deal as a “transformational move” for the company, emphasizing that the newly acquired assets produce low-cost, high-margin barrels that typically sell at a premium to Brent crude.
To maintain and increase production in its newly acquired mid-life fields, Africa Oil and its partners have planned an infill drilling campaign in 2025. This strategy aligns with Nigeria’s broader goal of ramping up crude oil output, with the government targeting an increase to 2.06 million barrels per day.
Africa Oil’s Expanding African Portfolio
Beyond Nigeria, Africa Oil holds key interests in Equatorial Guinea and Namibia’s Orange Basin, one of Africa’s most promising new oil frontiers. Through its 40% stake in Impact Oil & Gas, the company has indirect exposure to the massive Venus oil discovery, operated by TotalEnergies. A final investment decision on the Venus project is expected by 2026, positioning Namibia as a potential oil exporter by the end of the decade.
“Our focus is to add to the cash generation machine that will drive growth throughout this decade, while Namibia’s Venus discovery comes onstream for long-term expansion,” Quinn noted.
Boosting Nigeria’s Oil Output
Africa Oil’s latest acquisition adds momentum to Nigeria’s oil sector, supporting the country’s ongoing efforts to increase production and stabilize its energy industry. In 2024, Nigeria surpassed its OPEC quota of 1.5 million barrels per day by 70,000 barrels but remains below its ambitious 2.06 million bpd target.
Africa Oil has steadily built its presence in Nigeria’s offshore sector, with key holdings including:
•Petroleum Mining Lease (PML) 52 – A 62.46% stake in the offshore Agbami field, extended for 20 years by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
•Other Nigerian assets – Interests in PML 2, PML 3, and PML 4, all operated by industry giants Chevron and TotalEnergies.
The company’s offshore fields primarily produce light to medium sweet crude oil, extracted using FPSO (Floating Production, Storage, and Offloading) systems.
As Africa Oil strengthens its operations in Nigeria and eyes future opportunities in Namibia, its latest expansion marks another milestone in the continent’s evolving energy landscape.
