Indigenous producers in Nigeria’s oil and gas sector now account for as much as 50 per cent of total gas production and 30 per cent of crude oil output.
This is due to the high rate of divestment of assets by the international oil companies (IOCs) and the surging participation of indigenous firms.
Chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, who made these known on Sunday night, Komolafe said at least 29 assets have been divested in recent years and are now being operated by Nigerians.
Speaking in Abuja during the Independent Petroleum Products Group (IPPG) gala in celebration of 14 industry icons, Komolafe said, “As at today, I am proud to say that indigenous companies contribute about 30 per cent of crude oil and 50 per cent of gas production as well as 40 per cent and 32 per cent of oil and gas reserves respectively,” he added.
Speaking on the theme, “IOC divestments-Nigeria’s energy security and the role of the IPPG on this new mix” the Commission chief executive urged the Independent Petroleum Producers Group to see the divestments of IOCs as an opportunity to increase their investments in upstream assets instead of a threat, stressing that it was time to look inwards and deploy their competences in the industry.
“As a regulator, the commission is not oblivious of the threats posed to the development of the Nigeria’s hydrocarbons industry by divestments of the IOCs which is mainly attributable to a hostile upstream environment arising from the menace of crude oil theft and energy transition,” he added.
He explained that seven indigenous companies are among the top 20 with the highest oil reserves in the country.
He stated that the IPPG remains a major force in the exploration of the nation’s hydrocarbons resources for optimal value addition, promising to ensure a clement regulatory environment for the oil producers.
The NUPRC boss recalled that prior to 1970, the Nigerian oil and gas space was dominated by foreign companies in the upstream and downstream sectors, with the first award of oil blocks to two indigenous companies failing because of lack of finances and technical know-how.
Since then, Komolafe noted that there have been a number of programmes where 30 blocks were awarded on sole risk basis, while 24 were awarded between 2003 and 2004.
Meanwhile, the IPPG gala celebration was held to recognise individuals who have contributed immensely to the sector in the past years.
In all 14 icons were honoured and they included the pioneer chairman of Seplat, Ambrosie Orjiako, Austin Avuru of Platform Petroleum, Abdulrasaq Isa of Waltersmith, Dr. Tunde Afolabi of Amni International and Layi Fatona, Pioneer Managing Director of Niger Delta E&P.
Others were Danjuma Saleh of Waltersmith, Charles Odita, formerly of Shell and Midwestern Oil,Oluseye Fadahunsi , Adebayo Ayorinde, Osariemen Owieadolor, Ignatius Ifelayo, Ebiaho Emafo, Pade Durotoye and Dr Ladi Bada.
Speaking earlier, Chairman IPPG, Abdulrasaq Isa, noted that improving in-country value extraction of Nigeria’s hydrocarbon resources and supporting the country’s energy security remain one of the lofty goals of the group.
He commended the President, Muhammadu Buhari, for his steps to lift the petroleum industry through the passage of the Petroleum Industry Act (PIA) as well as his support for the group and lauded the transparent conduct of the recent marginal fields bid rounds.
