Rise of Nigerian E&Ps

The divestment of oil and gas assets by IOCs has been a blessing in disguise for local Nigerian exploration and production companies (E&P). Many local Nigerian companies bought the assets and now own blocks across Nigeria’s oil-producing regions. They now contribute at least 10 per cent to Nigeria’s crude production.

Those figures are likely to double over the next few years. Nigeria’s oil and gas industry takes comfort from the fact that the continued oil and gas discoveries (most recently by Afren and Lekoil) and the ability of these companies to successfully tap foreign equity capital for their Nigeria activities. Companies like Aiteo, Seplat, Amni, Cavendish First E&P, Moni Pulo Ltd, Niger Delta Petroleum Resources Ltd, Pan Ocean, South Atlantic Petroleum, Yinka Folawiyo Petroleum among many others have risen to the occasion.

Also, NNPC’s upstream arm, NPDC has positioned itself for the task ahead acquiring more than 55 per cent equity stakes in four onshore oil assets divested by Total, Shell and ENI with an ambitious plan to increase production from its current 100,000 bpd to around 250,000 by 2020. Increasingly, Nigerian oil companies have become more assertive, more ambitious and more resilient. Nigerian companies were among prospective bidders shortlisted to participate in the maiden oil licensing bid round for oil blocks in Uganda.