AEC Affirms Nigeria’s Indigenous Companies’ Capacity To Create Value From Oil Production

The African Energy Chamber (AEC), has said as foreign operators continue to reduce their onshore exposure, Nigerian indigenous oil firms are stepping in to fill the gap, with local firms now accounting for more than half of the country’s oil and gas output.

According to executive chairman of the chamber, NJ Ayuk, their participation by combining upstream production, gas processing and local refining is central to ensuring more value from African resources is retained within the continent.

The comment is coming after Aradel Holdings, the largest oil and gas company listed on the Nigerian Exchange, announces its participation as an Associate Sponsor at African Energy Week (AEW) 2026, taking place in Cape Town from October 12–16, 2026.

The company’s participation comes as Nigeria’s upstream sector undergoes a structural shift, with indigenous operators increasingly acquiring and operating assets divested by international majors across the Niger Delta.

Aradel’s growth has been supported by a series of strategic investments and partnerships across the upstream landscape.

In 2025, the company increased its stake in ND Western, which holds a significant interest in OML 34, and it is also a shareholder in Renaissance Africa Energy, the consortium that acquired Shell’s onshore Nigerian assets in a $2.4 billion transaction.

Beyond dealmaking, Aradel stands out as one of the few indigenous operators with an integrated upstream-to-downstream model. At its flagship Ogbele asset in Rivers State, the company operates a crude flow station, a 100 million cubic feet per day gas processing facility and an 11,000 barrels per day modular refinery – the first privately developed and operated refinery of its kind by a Nigerian independent. The Ogbele field is also the only non-joint-venture supplier of gas to Nigeria LNG’s Bonny terminal.

“Aradel’s expansion demonstrates that indigenous operators are not only taking over mature assets but are running them efficiently across the full value chain,” said Ayuk. “This model – combining upstream production, gas processing and local refining is central to ensuring more value from African resources is retained within the continent.”

The Ogbele refinery also aligns with Nigeria’s broader push to reduce fuel imports and expand domestic refining capacity. It currently produces diesel, jet fuel and other refined products, with plans to expand into petrol production. The country’s downstream regulator has previously cited the facility as a benchmark for indigenous refining development. Aradel CEO Adegbite Falade also serves as Chairman of the Independent Petroleum Producers Group, which represents Nigeria’s indigenous operators.

At AEW 2026, Aradel’s integrated portfolio spanning production, processing and refining is expected to feature prominently in discussions on the growing role of indigenous companies in reshaping Nigeria’s upstream and downstream sectors.