Africa Oil Corporation is set to double its oil production in Nigeria and expand its reserves as it finalises a deal to take full ownership of Prime Oil & Gas next week.
Oliver Quinn, the company’s chief commercial officer, said the acquisition, scheduled to be completed on Tuesday, would significantly boost Africa Oil’s production capacity and financial position.
“Once the deal closes, we will double production, double reserves, and significantly improve our liquidity,” Quinn said in an interview with Reuters.
Africa Oil is increasing its stake in Prime Oil, a Dutch company that holds indirect interests in deep-water oil fields in Nigeria operated by TotalEnergies and Chevron.
With the acquisition, Africa Oil expects its production to reach around 35,000 barrels per day.
Quinn noted that the Nigerian assets have a cost advantage, making them highly profitable. “These barrels have a very low lifting cost, under $10 per barrel, and typically sell at a premium to Brent crude,” he said.
The company, alongside its partners, is planning an infill drilling campaign this year to sustain production levels in mid-life fields.
Namibia’s Orange Basin a long term play
Beyond Nigeria, the Canadian oil major is positioning itself for future growth in Namibia’s Orange Basin, where it holds a 40% stake in Impact Oil and Gas.
The company has exposure to the Venus discovery, one of the most promising offshore oil finds in recent years.
TotalEnergies, the project’s operator, is expected to make a final investment decision in 2026, potentially turning Namibia into an oil-producing nation by the end of the decade.
“Our focus is on building a strong cash-generating business through this decade, while Venus in Namibia comes online later, driving long-term growth,” Quinn said.
Africa Oil is also active in Equatorial Guinea, but Nigeria and Namibia remain its key priorities as it looks to expand its footprint in Africa’s energy sector.
