Uche Cecil Izuora
Indigenous oil companies in Nigeria are adding up oil production numbers which authorities now rely on to achieve a million barrels production target by next year.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in a data on production capacity said local oil companies have scaled up their production capacity as they now account for more than 50 percent of the country’s crude oil production.
This represents a sharp increase of over 10 per cent from about 40 per cent the share they held before international oil majors began pulling out of onshore and shallow water operations.
The development was reported by Reuters quoting the Commission.
This marks a significant shift in Nigeria’s energy landscape and positions indigenous firms as key players in the Federal Government’s ambition to raise daily crude oil output by an additional one million barrels next year.
The report read, “Local oil firms now account for over half of Nigeria’s oil production from around 40 per cent before the oil majors completed their divestment programmes, according to the regulator’s data.
“These local players signal a new phase for Nigeria’s oil and gas sector and could provide support for the government’s plan to raise oil output by an additional one million barrels per day next year, head of Nigeria’s oil regulator said.”
The rise of these indigenous operators follows a wave of divestments by international oil companies such as Shell, ExxonMobil, ENI, and TotalEnergies, which have sold off onshore and shallow-water assets to focus on deepwater operations.
In their place, Nigerian-owned firms are stepping up with aggressive investment plans and field development strategies.
One such milestone was recorded recently when Green Energy International Limited commenced loading operations at Nigeria’s first fully indigenous onshore crude export terminal, Otakikpo.
The 360,000 barrels-per-day terminal, located in OML 11 near Port Harcourt, handled its first crude cargo loaded by Shell’s trading arm.
The facility is expected to unlock stranded reserves in over 40 marginal fields across the region and boost crude evacuation from the Niger Delta.
Similarly, Conoil Producing Limited recently exported the maiden cargo of its new Obodo crude blend from the OML 150 licence area.
The cargo was lifted by Oando Trading, a subsidiary of Oando Plc, which acquired ENI’s divested Nigerian assets as part of its upstream expansion.
Another major player, Renaissance Africa Energy, the consortium that acquired Shell’s onshore assets, has pledged to invest $15bn over the next five years.
The company aims to scale up crude production and double its gas output once a major domestic pipeline currently under construction is completed.
On its part, Seplat Energy, which is finalising the acquisition of ExxonMobil’s shallow-water assets, has unveiled plans to reopen over 400 shut-in wells.
Speaking at the company’s recent annual general meeting, CEO Roger Brown said Seplat would invest up to $320m this year in new drilling campaigns and infrastructure upgrades, with a target to raise output to 140,000 barrels per day.
“We are focused on reviving existing wells, expanding drilling campaigns, and increasing gas volumes,” Brown said.