Atlas Oranto Petroleum International Limited (AOPI), a leading Nigerian oil and gas firm, is expanding its global footprint after signing an oil prospecting agreement in Venezuela.
The deal, inked by Prince Arthur Eze, Chairman of Oranto Petroleum Limited, and Venezuelan Oil Minister Pedro Tellechea, in the presence of Venezuelan President Nicolás Maduro, signals AOPI’s entry into the North and South American energy markets.
The agreement aligns with AOPI’s strategy to diversify its portfolio and establish a presence in regions rich in untapped oil and gas resources.
Prince Eze described the deal as a major milestone for the company, which has primarily focused on African markets until now.
AOPI’s operations in Africa
Before venturing into Venezuela, AOPI had already secured a strong foothold within the African energy market. The company has been a key player in Côte d’Ivoire, Senegal, Uganda, and Mozambique, among other countries. Its extensive operations have positioned AOPI as one of the leading African oil and gas firms.
One of AOPI’s notable achievements in Africa is its ongoing work in Uganda. In 2017, the Ugandan government granted Oranto Petroleum two petroleum exploration licenses for the Ngassa Deep and Ngassa Shallow contract areas in the western Hoima and Kikuube districts.
The company has made significant progress in these areas since then, and in 2023, the Ugandan government extended Oranto’s exploration license by two years, beyond its original expiration date of December 29, 2023, reflecting President Yoweri Museveni’s confidence in AOPI’s capabilities.
In addition to its work in Uganda, Atlas Petroleum International Limited, a subsidiary of AOPI, made headlines with the Venus oil discovery in Block P, Equatorial Guinea. This discovery was made in collaboration with Vaalco, the operator, and Guinea Ecuatorial de Petroleós Co. (GEPetrol), the state-owned oil company of Equatorial Guinea.
The Venus field is expected to add 23.1 million barrels (MMbbl) of 2P gross reserves, with production anticipated to reach approximately 15,000 barrels per day (b/d) upon completion of the development and injector wells.
Venezuelan expansion
The recently signed agreement in Venezuela involves the exploration of two significant offshore natural gas fields, the Barracuda field in the Gulf of Venezuela and the Boca de Serpiente field on the Deltana Platform, located on Venezuela’s eastern maritime border. According to Venezuelan authorities, these fields contain about 30 trillion cubic feet of natural gas.
The agreement aims to certify these reserves and potentially elevate Venezuela to fourth place globally in terms of natural gas deposits.
The agreement includes plans to assess the technical and economic feasibility of developing the Barracuda and Boca de Serpiente fields, with the potential for future gas exploration licenses to be issued.
Venezuelan President Nicolás Maduro expressed his enthusiasm for the partnership, emphasizing its importance to the country’s energy sector. He noted that Venezuela was ready to engage in mutually beneficial contracts with private sector partners, adding that the country’s legal framework ensures fair and respectful agreements.
“I am pleased that the natural gas processes are accelerating,” President Maduro said. “Soon enough, we will be exporting natural gas to Africa.”
US sanctions
For AOPI, this agreement represents a strategic expansion into a region heavily impacted by US sanctions.
Venezuela’s energy sector, particularly its oil industry, has faced significant challenges due to these sanctions, which have targeted the country’s oil revenues since 2017.
The most recent sanctions were imposed in April this year, with the US claiming that President Maduro’s government failed to uphold an agreement signed in Barbados in October 2023. Per the agreement, Venezuela was supposed to have a free, fair, and competitive election in July.
However, the U.S. claimed that Maduro hindered this process by cracking down on his political opponents and banning leading opposition candidate María Corina Machado.
Consequently, the U.S. directed oil companies to “wind down” their operations in Venezuela within 45 days.
“Nicolás Maduro and his representatives have not fully met the commitments made under the electoral roadmap agreement. Therefore, General License 44, which authorized transactions related to the oil and gas sector with Venezuela, will expire after midnight and not be renewed,” U.S. Department of State spokesperson Matthew Miller stated.
As a result of these sanctions, Maduro’s administration has been actively seeking private sector investment to revitalize the industry, and the partnership with AOPI is seen as a crucial step in this direction.
What does this mean for AOPI?
AOPI’s entry into Venezuela comes at a time when the country is courting foreign investment to unlock the potential of its vast natural gas reserves.
Unlike oil ventures, where Venezuelan law mandates a majority stake for the state-owned PDVSA, natural gas projects offer more flexibility, allowing private companies to hold the majority or even all of the shares.
This legal loophole presents a unique opportunity for AOPI to establish a significant presence in Venezuela’s natural gas sector.
