Local oil firms in Nigeria’s exploration and production (E&P) value chain of the oil and gas industry account for 300,000 out of the about 2.2 million barrels (bbls) of oil produced daily in the country.
According to an industry data, the daily production is supposed to be between 2.4 million barrels and 2.5 million barrels per day (bpd), but owing to vandalism and oil theft, the volume sometimes falls to 2.1 million bpd.
The Chairman/Chief Executive Officer of Waltersmith Petroman Oil Limited, an indigenous E&P firm, Abdulrazaq Isa, who spoke on activities in the local oil terrain, said, local players are driving production growth, adding that there was need for government to support them.
According to him, the Nigerian Content Development and Monitoring Board (NCDMB) should support the growth of indigenous E&P firms by urging the international oil companies (IOCs) to release assets (oil fields) they consider commercially less viable or low producing fields to the local companies to encourage them make more investments.
Indigenous operators also noted the Local Content Act has given local production and contribution in the oil and gas sector a boost, adding that 20 per cent or more of the oil reserves is held by the independents, which is between nine and 10 billion barrels.