Nigeria’s oil and gas sector is undergoing a transformative phase, with homegrown energy companies taking the lead in revitalizing production and infrastructure. As international oil majors divest from onshore and shallow water assets, local operators are stepping in with ambitious investments aimed at unlocking the country’s vast untapped reserves.
A notable milestone in this shift is the launch of the Otakikpo onshore crude terminal, Nigeria’s first fully developed and operated by a local company. Built by Green Energy Limited and situated in the OML 11 block near Port Harcourt, the facility has a daily export capacity of 360,000 barrels. Its operation is expected to enable the development of over 40 dormant fields in the surrounding area.
Similarly, Conoil Producing has commenced shipments of its newly introduced Obodo crude grade, produced from the OML 150 block in the Niger Delta. The first cargo was lifted by Oando Trading, part of Oando Plc, following the acquisition of assets previously held by a major international oil company.
In a parallel development, Renaissance Africa Energy has committed to a $15 billion investment plan over the next five years. This follows its acquisition of Shell’s onshore portfolio and includes goals to ramp up both crude oil and gas production. The company intends to double its gas output once ongoing gas infrastructure projects are completed.
Seplat Energy is also expanding its footprint. Following its acquisition of ExxonMobil’s shallow-water assets in Nigeria, the company has revealed plans to reactivate 400 previously inactive wells. With a capital investment of $320 million earmarked for the year, Seplat aims to raise its daily output to approximately 140,000 barrels. According to its CEO, efforts are focused on scaling production and boosting gas capacity through intensive drilling programs and infrastructure upgrades.
Despite the momentum, these local firms face persistent challenges including operational costs tied to security issues, community unrest, oil theft, and ageing infrastructure. Addressing these hurdles is crucial to sustaining the current growth trajectory and reducing overall production costs.
Still, the growing influence of domestic producers marks a pivotal moment for the industry. They now contribute more than half of Nigeria’s total oil production—up from about 40% prior to the withdrawal of foreign majors. Their contributions are expected to play a vital role in helping the government meet its target of increasing national oil output by an additional one million barrels per day in the coming year.
