The group chief executive, Oando PLC, Adewale Tinubu, has emphasised that Nigeria’s onshore oil and gas assets are best in the hands of indigenous oil players,” reflecting a growing confidence in local expertise.
Nigeria’s oil sector is witnessing a transformative shift as local companies take the helm of onshore assets.
Speaking on the sidelines of the just concluded World Economic Forum (WEF), Tinubu’s statements highlight the potential for local firms to enhance production and drive economic growth amid ongoing challenges in the Niger Delta
World leaders, top executives of the 1,000 foremost global companies, leaders of international organisations and relevant non-governmental organisations gathered in Davos, Switzerland last week, to deliberate on ways to move the planet forward at the prestigious World Economic Forum.
Since the founding of the Forum, its objective has been consistent: to be the world’s foremost platform to shape global, regional and industry agendas through multi-stakeholder engagement. Themed ‘Collaboration for the Intelligent Age,’ the 2025 annual convening of investors, business leaders, political leaders, and economists focused on driving conversations that addressed geopolitical shocks, stimulating growth to improve living standards, and fostering a just and inclusive energy transition.
The Nigerian delegation, included top government officials led by the Vice President of Nigeria, Kashim Shettima; minister of Finance, Wale Edun and minister of Industry, Trade, and Investment, Jumoke Oduwole as well as CEOs such as Adewale Tinubu, group CEO, Oando PLC, amongst others.
Speaking on the Nigerian Energy sector, Wale Tinubu highlighted the immense prospects of indigenous energy companies taking over the divested assets by International Oil Companies (IOCs) in Nigeria. Tinubu emphasised that by combining robust working capital, advanced technologies, and the unique skills, capacity, and local acumen of these indigenous players, who now significantly control Nigeria’s onshore assets, the industry can unlock previously untapped potential.
As one of the first indigenous companies that successfully acquired an IOCs’ onshore assets, AGIP, Tinubu highlighted the importance of partnership and critical financing to not only extract value from these material reserves but also accelerate the rate of extraction.
“As a company, we have over a billion barrels of reserves, 300,000 barrels a day of oil processing capacity, and over 2 billion cubic feet a day of gas capacity. Effectively, the net present value of the oil we have in our facilities is well over $10 billion.” remarked Tinubu.
He stressed the critical role of Governments and regulators in maximising value from the industry to address economic challenges, improve the balance of trade, and attract greater foreign investment to Nigeria.
“We need to increase our exports significantly to improve our balance of trade and strengthen the Naira” he explained. “The oil and gas industry offers the fastest path to achieving this, given our substantial reserves and existing infrastructure” he added.
Tinubu unveiled plans of how Oando is set to adopt artificial intelligence, amongst other technologies, in its next drilling campaign to explore its over one billion barrels of oil reserves to strengthen decision-making and optimise costs in oil exploration. “In a drilling operation, we have to make crucial decisions which have a high impact on costs,” Tinubu stated. “AI will allow us to analyse vast amounts of data, including decades of seismic technology and drilling experience, to identify the most optimal solutions,” he added.
A just energy transition was a topic that echoed throughout the Forum. In addressing the ongoing conversations about decarbonization, Tinubu reinforced the need for a just energy transition, stating that Africa contributes a minuscule amount to global emissions, constituting about 20 per cent of the global population. He, however, expanded on the immediate steps Oando has incorporated to reduce its carbon footprint
“We are actively working hard to ensure that every molecule of carbon we put into the environment is mitigated through the implementation of effective carbon capture techniques.”
In conclusion, Tinubu emphasised the critical role of partnerships, sustainable funding and innovation in driving the future of the energy sector in Africa. He expressed confidence in Oando’s ability to continue to lead this new era of indigenous players to unlock Africa’s energy potential.
The Annual Meeting in Davos remains a global platform that is unmatched in engaging leaders from business, government, international organisations, academia, and civil society in peer-to-peer working sessions. By coming together at the start of the year, world leaders can shape the future by joining the unparalleled global effort in co-design, co-creation and collaboration to make the world a better place.
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