How local firms produce 50% of crude output in Nigeria—Reports

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

Nigeria’s oil and gas sector is undergoing a significant transformation, with local oil companies now accounting for over 50% of the country’s crude oil production. This marks a sharp increase from the 40% share they held before international oil majors began pulling out of onshore and shallow water operations.

According to the Nigerian Upstream Petroleum Regulatory Commission, local players are signaling 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. The rise of indigenous operators follows a wave of divestments by international oil companies such as Shell, ExxonMobil, ENI, and TotalEnergies.

For further information, read more details here

Green Energy International Limited has commenced loading operations at Nigeria’s first fully indigenous onshore crude export terminal, Otakikpo. The 360,000 barrels-per-day terminal is expected to unlock stranded reserves in over 40 marginal fields across the region and boost crude evacuation from the Niger Delta.

Other local players, such as Conoil Producing Limited and Renaissance Africa Energy, are also making significant strides. Conoil Producing Limited has exported its maiden cargo of Obodo crude blend, while Renaissance Africa Energy has pledged to invest $15 billion over the next five years to scale up crude production and double its gas output.

Seplat Energy, which is finalising the acquisition of ExxonMobil’s shallow-water assets, plans to reopen over 400 shut-in wells and invest up to $320 million in new drilling campaigns and infrastructure upgrades. According to Seplat’s CEO, Roger Brown, “We are focused on reviving existing wells, expanding drilling campaigns, and increasing gas volumes.”

Analysts say the growing role of local producers aligns with the federal government’s reforms under the Petroleum Industry Act. However, they warn that persistent challenges, such as security concerns, community disputes, oil theft, and ageing infrastructure, could limit the full potential of these firms. Mikolah Judson, an energy analyst, noted, “A key aspect of reducing costs for operators will be addressing these challenges comprehensively.”

Despite the hurdles, experts believe the rapid growth of indigenous oil producers could serve as a critical lever in reversing Nigeria’s declining production curve and ensuring long-term energy security

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post