BAP Energy is one of the top six companies to reach “technical first oil” among the 50 entities awarded licences to marginal fields in Nigeria’s 20202022 licencing window.
Twice in the course of Africa Oil+Gas Report’s wide ranging, 90-minute interview with Temitope Edun, the company’s Chief Executive Officer, the word ‘Finance’ came up, but not as charged or loaded as it always does in conversations with C-Suite, E&P types.
“Finance has not been a struggle for us”, she told us, “but smaller oil and gas players do have challenges accessing funds”. This phrasing came across as: “other people have issues and they may need help, but not us”. Edun was more keen on getting the word out: “operating in an environment where the fiscal framework is skewed towards bigger companies was more challenging, as were the permits and regulatory compliance needed to drill or do anything on our asset”.
EXCERPTS FROM THE INTERVIEW BY AKPELU PAUL KELECHI AND FIDELIS AKPOM…
AOGR: BAP Energy is one of the early movers among the 2020-2022 marginal field awardees. You carried out a re-entry and workover of Igbomotoru 2 in PPL 207, carved out from OML 33. Can you briefly walk us through that journey? Why did you opt for Well 2 instead of Well 1.
TEMITOPE EDUN: BAP Energy was put together as an SPV for three companies that won the bid for PPL 207. We started working on the asset in July 2024. We looked at the two wells we had on the ground: Igbomotoru 1, a plugged- and-abandoned well, and Igbomotoru 2, a suspended well. We realised we wouldn’t have to do too much to get into Igbomotoru 2. That well goes through reservoir levels that, by our economic evaluation, were very viable. We decided to re-enter and get faster market access by producing through the shallower levels accessible with Igbomotoru 2. That is why we went with Well 2. Well 1 was plugged and abandoned with hundreds of metres of cement, so we would have to sidetrack it and deal with the swamp terrain, which we couldn’t do with a workkover unit. Our strategy was that once we became a producing company, we would be more valuable and able to get financial support. That was our strategy going into the re-entry.
You have been running an extended well test in Igbomotoru 2, so what exact volume of crude have you exported, and how much do you have in storage?
We started production some months ago. We have had 31 shipments to Brass, which is the terminal to which we evacuate. We have done north of 250,000 barrels.
As for what is in the tank, that is a moving target, but we have done about three cargoes of crude offloads in the back.
You mentioned Igbomotoru 1 being plugged and abandoned. At a recent technical session of the Nigerian Association of Petroleum Explorationists (NAPE), Shell presented and spoke about re-purposing wells. Is that something BAP is considering?
We realised there was about 600 feet of plug- and-abandon cement in three sections. It is not that we cannot drill through it, but it is not worth it. We are going to sidetrack that well. If you mean re-entering, yes, we are going to reuse the well, drill to a certain level, kick out, and use it that way. That well encounters almost 17 reservoir levels, so it is still a good well. We just do not want to start drilling through the old hole, so we will sidetrack to access the same levels.
What is BAP’s full value proposition, and what is your strategy for the next five to 10 years?
Every meeting we attend at NUPRC (Nigerian Upstream Petroleum Regulatory Commission), we hear about one million barrels added, three million barrels to be added. We know marginal fields are expected to support this drive. Our objective is to bring production to market. NUPRC has always told us they want to increase production in Nigeria and put money in the pockets of the government. Marginal field oil companies will add to these numbers. Our plan is to exploit this asset to get the best value out of it. We are bringing oil barrels to the table and even more gas molecules. We plan to first exploit the oil, drilling at least three wells, and then go into another three wells for gas. We are bringing a lot to the market.
Now that you have captured a lot of data from the extended well test, what is the full outline of BAP’s FDP on the asset?
We have re-entered the first well. The second well will be sidetracked to access the best three levels. A third well will access the very deep level. That is the plan for oil. In about two years, we plan to go into gas and drill another three wells to access our vast gas reserves.
When do you expect to begin the long- awaited drilling campaign? Is a rig finally on the way, and when is it expected to arrive?
This is an oil and gas problem in Nigeria. Swamp rigs are scarce. We have had opportunities for a swamp rig but have faced missed schedules and market challenges. We are speaking to a number of swamp rig providers and are waiting to start before the end of 2026.
When should we expect full steady evacuation into these mid-sized assets? Are there any proposed gas developments? You mentioned three gas wells. What volume are we expecting?
We are still evaluating the asset. We cannot say exactly what we will produce yet because we have not finalised that study. But we know our gas reserves are very high. In two years, we expect to start exploiting gas.
Given the field’s estimated 2P reserves of about 7Million barrels and STOIIP of 20Million barrels, what peak daily crude output do you expect over the next three years?
These are theoretical workings, but we know what we are producing from this first well and what we hope to produce from the next two. All in all, I expect about 5,000 to 7,000 barrels per day in the next few years if we are successful.
What are you currently producing?
We cannot say categorically at this point because we have had quite a few challenges – ups and downs since this is a well-test phase. We are testing different things, so I cannot give a definitive daily production figure.
Igbomotoru 1, 2, and 3 are old wells with difficult operating conditions and numerous vegetative channels. What challenges did you face with access, data certainty, evaluation, and interpretation? Did you need new seismic data?
Igbomotoru is in a swamp area, not close to land. By fast speedboat, it is almost one and a half hours from here; many mobilise from Port Harcourt, making it nearly a three-hour trip. It was quite difficult to walk in that terrain because there is nothing around, just many creeks. Security can be a concern in the creeks, but we have not had any major attacks or issues. In terms of data, reentering the well gave us much new data, which helped us re-evaluate the entire asset and decide where to go for the next campaign. We are still looking at our substantial gas asset. On your question about seismic, it might be something we do soon, but it is not yet in the pipeline. We have worked with the old Shell seismic data.
Recent global pressure on renewable energy and fossil-fuel financing has affected marginal fields. Aside from financing, what other major challenges have you had to overcome as a new operator?
Finance was not too much of a challenge for us in the first phase. Operating in an environment where the fiscal framework is skewed towards bigger companies was more challenging, as were the permits and regulatory compliance needed to drill or do anything on our asset. It is not that we could not overcome these challenges; we just had to know exactly what was required and do it. Are they easy for marginal field operators? Maybe not, but it can be achieved. We need regulatory consistency and a framework skewed towards marginal field operators. There have been talks about harmonising taxes for marginal field operators, and I agree. There are too many layers, too many governmental agencies, too many things we suddenly hear about and ask, “Was that on the list?” We need harmonisation, especially for smaller players without deep pockets. We need to speak to just one or two organisations or ministries, and they cascade down what we need to do. That is one of the key challenges.
Would you say the ease of doing business has not been fully implemented, especially from a regulatory standpoint?
In the last decade or so, marginal field operators were not that many. Suddenly, Nigeria has created an environment where many have come into the market, and it is an evolving industry. The framework needs to work for these smaller and medium-sized players. The PIA was very good for the industry, but is it skewed towards all facets? These are things the NUPRC is looking at and trying to address.
What have been your key host community development successes, and is there any project that you are especially excited about?
Under the PIA, there is now the Host Community Development Trust (HCDT), where we are supposed to put money, and the community comes up with its needs assessment. It is no longer about a company just doing CSR. We operate within six communities, and we have had success because we carried them along in everything we do. We did not wait for the HCDT alone; we made them part and parcel of every decision concerning their area. The community has been well schooled on the new PIA, given workshops, and they know we would do right by them. It has been a smooth ride so far.
Is there any community project you are especially excited about?
The community identified what makes a better community: schools, hospitals, and electrification. What excites me is that they did not bring lofty ideas. They said, “I need a walkway from here to here,” “I need water in this particular way.” They made it very specific. We sat down for days and came together to ask, “What do you need?” That excites me. We also support the women, ensuring they speak up and are not sidestepped. That is also exciting.
So, these six communities have each set up a board of trustees in line with the PIA?
There is one board of trustees for all six communities under one umbrella. Yes.
Do you think a 20 MW gas plant is a feasible project in these small communities?
I cannot say because I have not done the assessment. The communities are quite educated; they know what they need. If electrification comes up, they will tell us how much electricity they need, and we will work with that.
Aside from harmonising taxes and agencies, what else can the government do to relieve pressure on new marginal entrants?
Finance has not been a struggle for us, but smaller oil and gas players do have challenges accessing funds. It would be interesting for the government to provide some kind of alleviation, perhaps a fund for smaller players drilling wells for less than $30 million, or tax holidays to help them get to market. I know the NUPRC talks about these things, and they know finance, the regulatory environment, and community issues are all key. They step in when there are community issues to educate everyone on the real requirements.
How seamlessly do the three partners in BAP Energy work together? And you were appointed CEO of Milesquare two years ago, effectively making you the CEO of BAP. Do they cash-call well?
It is an interesting marriage. They are people from different walks of life, but they know the real objective of this SPV. They all sit down and discuss issues, and we have moved ahead quickly because they have allowed certain things to fall into place. We have a cash-calling strategy that has worked for us, which is why we have been able to do things fast.
You mentioned that BAP is likely to become more of a gas producer than an oil producer in the future. Would you expect the gas to be primarily for domestic consumption or for export?
That is forward-looking. We are engaging a few people, and every business looks for the best value. We will finalise our discussions with off-takers and go with whichever offers the best value.
You’re a mechanical engineer trained in both Canada and Nigeria, with experience at ExxonMobil and elsewhere. Why did you choose the energy industry? As an engineer with a Canadian master’s degree, you had many options. What was it about the energy industry that attracted you?
Engineering was natural for me. My father is a mechanical engineer, my husband is a mechanical engineer, and my children are engineers. My son has a master’s in mechanical engineering. It runs in the family. I did not think for a second I would do anything else. I did my BSc at the University of Ibadan, starting in electrical engineering but switching to mechanical because I could not see the electrons. After finishing, the natural gravitation for engineers in Nigeria was oil and gas – cutting-edge engineering, technology, travel, and good pay. It was a natural aspiration. Most jobs I got were oil and gas engineering roles. In Canada, I opened my eyes to other things. I worked for PricewaterhouseCoopers in Edmonton and saw I could do analytical work. But coming back to Nigeria, oil and gas was the easiest way into the market. I first went into banking for two years, working as an engineer on projects, then naturally gravitated back to oil and gas. It was not something I intentionally chose; it chose me as an engineer. And as a woman engineer, you are thought of as someone who can work at different levels.
You mentioned technology, which is interesting. Looking 20 years ahead, do you think mechanical engineers and geologists will remain as relevant as they are today, or will AI fundamentally change or even upend their roles?
AI is upending the roles of many people. Upending does not mean they no longer have a role; it means that if you are not AI-savvy, you cannot keep up. I cannot imagine doing my job without AI.
I was just discussing with someone yesterday that if I did not have AI, I do not know how I would handle all the things I handle. If they removed AI, I would probably go back to my village and sit down. AI needs to be incorporated into every job – not just for geologists. Even for mechanical engineers, before you know it, someone designs a machine, sends it to a 3D printer, prints it, and sends it to market with no human in that process.
Everyone can be upended by AI.
The bottom line is how much AI you are using in your job and incorporating into your daily work. That is what matters in the next era.
The Pope recently called on world leaders to put a leash on AI. Do you agree with that? And given how heavily you use AI in your own work, where do you think the line should be drawn between embracing its potential and putting appropriate limits on it?
I can relate to that concern. Every new technology has someone who can use it for the wrong reasons. With AI’s learning nature, it can bring up information from different aspects and be manipulated. I understand the concern about how AI can change reality. But we also live in a vastly populated, fast- moving world, and we need AI to think and act quickly. It is a double-edged sword. You need to be sure AI is used the right way and not manipulated, but also that you can use it for the right reasons. I cannot say put a leash on it, but I can say make sure you are not doing the wrong things with it.
How do you relax as an engineer?
My husband is always on the golf course, so he would easily say he relaxes. I would probably read a book. I run an NGO that deals with children on the street, so finding out about their lives and challenges is something I do. I also have friends I banter with, have drinks, and eat out with. I love to travel, though I do not get enough of the kind of travel I like. Those are the ways I relax.
What was the last book you read, and would you recommend it?
I’m reading a book by Hadiza Bala Usman, formerly the MD of the Nigerian Port Authority. It’s titled ‘Stepping on Toes.’ It talks about her journey in the NPA; how she started, how she left, and the challenges she faced. It’s an interesting read. I’m almost finishing it.
Do you see yourself one day writing your own story; whether about your personal journey, your career, or the story of BAP Energy?
It would be nice, but it is not top of mind at this point. Maybe someday.
Is there anything else you would like our readers to know about BAP Energy that we haven’t covered?
BAP Energy started just two years ago, but we have a great team. We have women and men in senior and junior roles, integrated together. One of my motives is that competence is not gender- specific. We have women going offshore and men doing typically women’s roles. We are gender- neutral, we just get the job done. That has helped people get into roles they typically would not. It is a lean team, but we are very good at what we do. We inspire ourselves to do better and handle many challenges. We do not have issues doing things outside our job roles to support each other.
