Indigenous companies are beginning to develop capacity to compete with International Oil Companies (IOCs), which have dominated the exploration and production of oil and gas in Nigeria for decades, The Guardian reports.
Dynamics are fast changing as indigenous players gear up to wrest control of Nigeria’s upstream oil and gas industry from the oil majors. Interestingly, these indigenous companies have proved their mettle by scaling up production capacity significantly over the past five to seven years. They have also made rapid gains on their IOCs counterparts in terms of technical expertise and finance capability. Local operators have even been able to poach top talent from IOCs and are excellently run. This has contributed positively towards increasing the percentage of Nigerian production coming from local operators. Seplat, Oando Plc, Nestoil, Newcross Petroleum Limited, and Aiteo, are some of the indigenous players that industry analysts observe with keen interest.
Seplat Petroleum Development Company Plc, currently produces about 50,000 bpd of crude oil and currently supporting government on completion of the Amukpe to the Escravos pipeline. Similarly, Oando Energy Resources (OER), had an average production of 43,503 barrels per day during the last quarter of 2016. Also, Energia Limited, another indigenous oil firm, is equally doing great in crude oil production. Nestoil is a force to be reckoned with in Engineering, Procurement and Construction (EPC) services, just like its counterpart Newcross Petroleum Limited (NPL). Companies such as Aiteo, Eroton and Newcross collectively produced up to 200,000bpd in the 4th quarter of 2016.