Fast-rising oil firm Innoson Oil & Gas has succinctly outlined its roadmap for exploiting the potentially substantial gas reserve offshore Sierra Leone. Initial estimates suggest the existence of more than 8 trillion cubic feet (TCF) and 234 MMbbl of recoverable natural gas and condensate at the offshore acreage licensed to Innoson Oil.
The Nigeria-based company sees the current uptick in global gas demand for as catalyst for a sustained robust long-term global demand. This could also feed into further de-risking the asset via a partnership with an experienced and competent firm. “We prefer sharing the burden of drilling with an experienced and competent partner for maximum chances of success,’ the company stated in a written response to Offshore Africa Magazine’s enquiries. METSCO Oil has been contracted to revise the evaluations in readiness for bringing a new partner into the fold. Innoson exercises 100 percent equity stake in the blocks with 10 percent carried interest reserved for Sierra Leone, plus an optional interest of five percent. This offers Innoson immense room to engage at least a partner who also stands to gain a significant stake in the project.
And with natural gas widely touted as the transition fuel in an era of cleaner fuel, IOG is convinced the prospect for gas as a first line energy source remains strong. “We have every reason to be excited knowing natural gas, a transition fuel with a comparably low life-cycle GHG emission per unit energy, is the most decarbonizing of all fossil fuels. It is the feedstock of choice for clean hydrogen; hydrogen demand is projected to grow fivefold heading into 2050,” it said. Innoson Oil and Gas is an integral part of Nnewi-based Innoson Group, a hugely thriving business conglomerate started by Chief Dr. Innocent Chukwuma, one of Nigeria’s most acclaimed business tycoons widely known for his high-flying vehicle manufacturing company, the Innoson Vehicle Manufacturing Ltd. The company is delighted its new massive gas find could contribute to energy security in an energy-starved continent.
Innoson says it will support the President’s Free Quality School Education (FQSC) initiative in Sierra Leone as part of its corporate social responsibility plans, in addition to sponsoring research, knowledge and technology-transfer activities in the West African nation. Sierra Leone’s crude potential has been put at 12 billion barrels recoverable and substantial gas reserves. “We have estimated oil reserves at between 10 and 12 billion barrels of recoverable oil,” revealed Foday Mansarry, Director General of the Petroleum Directorate in Sierra Leone in an exclusive interview with Offshore Africa. “Also, satellite imagery shows a clear pattern of natural oil seeps in our basin.”
Oil exploration began in Sierra Leone in the early 1980s. Seismic surveys and exploration wells drilled so far confirm the presence of source rocks. There are also proven hydrocarbons in deep water cretaceous turbidite plays. The Innoson Group is a business conglomerate with a 100% interest in businesses across the plastic and rubber, timber and wood, automobile and motorcycle, consumer electronics and lately oil and gas industries. The Group’ journey all started in 1981, when young Mr Innocent Chukwuma incorporated Innoson Nigeria Limited, to trade on motorcycle parts and accessories, in his home town Nnewi in Anambra State. In a strategic and heuristic next move, the company went into partnership with an integrated Chinese trade company, Chongqing North Jianshe Import & Export Co. Ltd., to become Nigeria’s first indigenous motorcycle manufacturing company. As a result, market prices of new motorcycles dropped 50% in Nigeria, eliciting a competitor price-taker-contingency.
Competition will follow suit, prompting the visionary entrepreneur to strive for resilience by vertical integration. He incorporated two new entities, Innoson Tech & Industries Co. Ltd. and General Tyres & Tubes Co. Ltd., both in Enugu State, assigned with plastic-components, tubes and tyres production for motorcycle. The former entity is believed to be the largest plastic-products producing company in West Africa with its huge 150 production lines bespoke for a wide portfolio of quality plastic products, with household, industry, healthcare and construction applications. The later remains the only indigenous tubes and tyres producing company for motorcycles in Nigeria. Diversification further founded a timber and wood processing mill for local and export markets and a consumer electronic facility but most illustrious is a vehicle manufacturing company, the Innoson Vehicle Manufacturing Ltd., IVM. IVM is a bold leverage of experience from both decades of automobile parts importation and motorcycle manufacture.
IVM, located in Nnewi, has a line capacity of 10.000 vehicles per annum and is the first indigenous Africa based automobile manufacturing and assembly plant. With a labour force count of 1800, IVM’ product rage includes high-capacity-, mini- and midi-buses, pick-up trucks, SUVs, sedans and garbage trucks. IVM has recently secured both corporation and collaboration agreements with the Nigeria Air Force and Nigerian Army with activities ranging from asset maintenance to the manufacture and supply of utility and armoured vehicles. Recently, Chief Dr Innocent Chukwuma (OFR) incorporated Innoson Oil & Gas Ltd., IOG, to explore, find and discover oil and gas assets. IOG is currently sitting on a huge undiscovered gas prospect offshore Sierra Leone after an assiduous and solid exploration campaign.