Indigenous Firms Dominate Nigeria's Crude Oil Production

Nigeria's oil production has undergone a significant transformation, with indigenous firms now accounting for over 60% of the country's total crude output. This shift in control has been driven by divestments, regulatory reforms, and improvements in pipeline security.

According to Heirs Energies CEO Osayande Igiehon, local operators have become the driving force behind Nigeria's ambition to raise crude production to three million barrels per day (bpd) by the end of the decade. This is a significant increase from the pre-pandemic levels of around 20-30% of production.

Igiehon attributed the gains to improvements in security, fiscal reforms introduced under the Petroleum Industry Act (PIA), stronger engagement with host communities, and increased participation by indigenous companies throughout the value chain. He also highlighted the importance of pipeline security, stating that 'when we came in during 2021, only three per cent of our production reached the export terminal. Today, we deliver between 95 and 100 per cent of production to the terminal.'

The CEO emphasized the need for strategic consolidation, stronger financing arrangements, and broader industrialization to build a more competitive domestic service industry.