The Nigerian Upstream Petroleum Regulatory Fee (NUPRC) has acknowledged that cooperation, strategic alliances, mergers, and acquisitions could give Unbiased Petroleum Producers Group (IPPG) flexibility to allow them to compete with multinationals in gentle of the rising price of divestment by Worldwide Oil Firms (IOCs) from Nigeria.
The IPPG, an umbrella group for indigenous Nigerian petroleum exploration and manufacturing (E&P) companies with about 25 members, commonly collaborates with authorities officers and different trade stakeholders to make sure the trade’s long-term targets and contribution to Nigeria’s socioeconomic improvement.
The IPPG and the NUPRC asserted that the present local weather is extra favorable for prospects and that the nation’s oil and fuel trade will function sustainably with native contributors.
Whereas greater than 23 property have been bought off by IOCs since 2009, and extra are deliberate, in accordance with Gbenga Komolafe, chief govt of NUPRC, the event represents extra of an opportunity for native companies.
Talking at an IPPG-sponsored occasion in Abuja on the eve of the Nigeria Oil and Fuel (NOG) Convention and Exhibition, Komolafe claimed that indigenous firms produced round 30% of the nation’s crude oil and 20% of its fuel, in addition to 40% and 32% of its reserves, respectively.
He claims that seven indigenous companies are within the high 20 with Nigeria’s largest oil reserves.
As well as, the IPPG has emerged as a big participant within the nation’s hydrocarbon useful resource exploration and exploitation for max worth addition to the Nigerian economic system on account of their operational roles and enterprise actions within the Upstream from the angle of the Fee because the Upstream petroleum regulatory physique.
He stated that Nigeria had the very best native unbiased involvement price amongst all African nations that produce petroleum. This was because of Nigeria’s strict native content material coverage.
Stronger IPPG, in accordance with Komolafe, is required via cooperation, strategic partnerships, mergers and acquisitions geared toward producing synergies, and large independents that may go up in opposition to worldwide companies.
Komolafe acknowledged that though the risk that IOC divestments pose to the expansion of the Nigerian hydrocarbon trade stays a critical fear, IPPG and different potential indigenous gamers ought to be inspired by the majors’ motivation to divest.
We encourage you as indigenous gamers throughout the worth chain to deploy your competency and ingenuity in selling vibrancy and capability utilization within the trade, he stated. “It’s certainly the precise time to look inwards within the sector to proof the potential of the native content material in worth addition and optimizing improvement of the Nation’s hydrocarbon sources.
He asserts that the IOC’s exit from the nation’s onshore and shallow water terrains presents a big alternative for brand spanking new house owners of these property, which the IPPG is best positioned to grab as a way to meet the rising want for vitality.
With a view to obtain operational excellence, he urged unbiased producers to take a artistic and sensible strategy. This could embody cost-efficiency enchancment, carbon discount, the constructing of supportive environments with host communities, and using the precise abilities and competencies.
Abdulrasaq Isa, the chairman of IPPG, acknowledged that as a way to guarantee the nation’s vitality safety, indigenous enterprises should concentrate on the shifting dynamics within the oil and fuel sector, notably the vitality transition and divestment by IOCs.
Along with warning in opposition to the dangers these occurrences convey to the nation’s vitality safety, he urged the operators to see the potential within the present circumstances.
He asserts that the group has raised the worth of hydrocarbon extraction within the nation and that it’ll proceed to advertise the nation’s vitality safety, one of many group’s lofty goals.
He praised President Muhammadu Buhari for his efforts to strengthen the petroleum trade via the adoption of the Petroleum Business Act (PIA), in addition to for his assist of the group, and praised the latest marginal fields bid rounds for his or her openness.
Ambrosie Orjiako, Pioneer Chair of Seplat, Austin Avuru, of Platform Petroleum, Abdulrasaq Isa, of Waltersmith, Dr. Tunde Afolabi, of Amni Worldwide, and Layi Fatona, Pioneer Managing Director of Niger Delta E&P have been amongst these honored.
Others have been Dr. Ladi Bada, Oluseye Fadahunsi, Adebayo Ayorinde, Osariemen Owieadolor, Ignatius Ifelayo, Ebiaho Emafo, and Danjuma Saleh of Waltersmith. Charles Odita, beforehand of Shell and Midwestern Oil, was one other.