Universal Energy Resources Limited, an oil company jointly owned by the Akwa Ibom State Government and Septa Energy, says it is set to commence production before the end of the year.

The company which operates a marginal oil field in Mbo LGA of the state in which Sinopec of China has 49 percent stake said it is undergoing “pre-commissioning activities from its 19 million barrel oil field expected to last more than 30 years.”

Ufot Ebong, the Chief Operating officer of the company gave reasons why oil production had been delayed over the years, stating that the state government alone could not fund the operations since it was awarded the block, adding that was the reason it brought in both Sipec and Septa Energy as technical partners.

Ebong, who is also the Asset Manager of Septa Energy described oil exploration and production as a capital intensive venture with late returns on investment, adding that with 51 percent share capital it was still a burden for the state government to fund oil production successfully.

He explained that Septa Energy was brought into Universal Energy because the state government was still looking for further technical partners.

Speaking with a selected group of reporters in Uyo, the state capital, he said he left his comfort zone as Asset Manager of Septa Energy, a company engaged in gas exploration and supply, saying the supply of gas to industrial projects and independent power plants would soon commence following the completion of its gas pipe line projects.

Ebong spoke against the backdrop of agitation by workers for improved condition of services as obtainable in the oil industry and maintained that though he met a “dysfunctional organisation” when he assumed duty at Universal Energy about two years ago, he pleaded for time for the management to finish with the upgrading and restructuring of staff to keep it at par with industry standard.

According to him, despite the non-commencement of oil production, the company has already invested over N50 million in the provision of projects to the host communities as part of its corporate social responsibility.