Canada’s Africa Oil Corporation is making significant strides in the African energy sector, particularly in Nigeria, as it moves towards full ownership of Prime Oil & Gas Coöperatief.

This strategic acquisition is expected to double the company’s production output to 35,000 barrels per day (bpd), reinforcing its presence in West Africa’s oil and gas industry. Oliver Quinn, the company’s Chief Commercial Officer, described the acquisition as a transformative deal for Africa Oil.

“On closing of that deal, we will significantly change the scale of our business.
“We will double production, double reserves, and significantly boost our liquidity position.”
Oliver Quinn, the company’s Chief Commercial Officer

The acquisition not only strengthens the company’s portfolio but also positions it to capture significant value from Nigeria’s oil industry, which remains one of the largest and most lucrative in the world.

Africa Oil, a company known for its strategic investments in oil assets across Africa, will take full ownership of Prime Oil, a Dutch-based entity that holds indirect stakes in deep-water Nigerian fields operated by global oil giants TotalEnergies and Chevron.

This acquisition represents a major milestone for Africa Oil and significantly enhances its position within the global oil market. The completion of the deal with Prime Oil is poised to radically alter Africa Oil’s output and financial standing.

Once the deal is finalized, Africa Oil expects to ramp up production to around 35,000 barrels per day, which marks a substantial increase from its current output. These additional barrels will be highly valuable due to their low lifting cost, estimated at under $10 per barrel.

Furthermore, these barrels typically sell at a premium to Brent crude, offering a strong profit margin for Africa Oil and its stakeholders.

“They are very significant value barrels because they have very low lifting cost of under $10, so the margin on the barrels is high and typically sell at a premium to Brent.
Oliver Quinn, the company’s Chief Commercial Officer

This strategic advantage in cost-efficient production will enable Africa Oil to leverage its expanded capacity to maximize profitability, while also positioning the company for further growth within the global oil market.

Expanding Beyond Nigeria

Africa Oil’s strategic focus is not limited to Nigeria. In addition to its expansion in the West African country, the company has stakes in several other African oil markets, including Equatorial Guinea and Namibia.

The company holds a key stake in Impact Oil and Gas, which has exposure to new oil discoveries in Namibia’s Orange Basin.

This region, which has recently become a hotspot for oil exploration, has the potential to significantly enhance Africa Oil’s portfolio as it seeks to diversify its operations and reduce its reliance on any one particular market.

“Our focus is to add to the cash generation machine, which runs through the decade while on the backend Namibia Venus comes onstream and then we have significant growth in that asset.”
Oliver Quinn, the company’s Chief Commercial Officer

As Africa Oil diversifies its investments, it is poised to benefit from the rising production and exploration activity in Namibia, a country that is quickly emerging as an attractive destination for international oil investments.

Africa Oil Corporation’s planned acquisition of Prime Oil & Gas represents a major milestone in the company’s African expansion strategy.

By doubling production to 35,000 bpd, the company is positioning itself as a key player in Nigeria’s deep-water oil industry, while also exploring long-term opportunities in Namibia.

With strategic investments, operational efficiency, and strong partnerships, Africa Oil is set to contribute significantly to Africa’s energy landscape while capitalizing on emerging opportunities in the oil sector.

However, its success will depend on how effectively it navigates regulatory challenges, market dynamics, and security risks in the region.