Nigeria's Oil Costs Could Be Cut with Local Chemicals

Nigeria's oil production costs are among the highest in OPEC+, averaging around $40 per barrel, far above the bloc's roughly $10-per-barrel average. To address this issue, Godswill Chidiebere Agomuo, a Nigerian chemical engineer with over two decades of experience in production chemistry, has called for increased local formulation and production of specialized oilfield chemicals.

According to Agomuo, locally formulated production chemicals can be effectively deployed across production platforms and flow stations while being adapted to the specific characteristics of Nigerian crude. This approach would not only reduce dependence on imported products but also enable Nigerian engineers and service companies to develop solutions that respond to changing production conditions.

Agomuo emphasized the importance of production chemistry and flow assurance in reliable hydrocarbon production, citing the need for a detailed understanding of crude oil properties and the selection of an appropriate chemical treatment. He stressed that laboratory performance alone cannot determine whether a chemical solution will work effectively in an operating oilfield, and that field evaluation is necessary to establish how it performs in the production environment.