Nigeria’s oil industry is undergoing a major transformation, with local companies now producing over half of the country’s total crude oil output, according to fresh data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
This is a big jump from their previous share of around 40%, and it’s all happening as international oil giants like Shell, ExxonMobil, ENI, and TotalEnergies continue to sell off their onshore and shallow water assets. These foreign firms are now focusing mainly on deep water drilling, leaving the shallow and onshore fields in the hands of local players.
“This marks a new chapter for Nigeria’s oil and gas sector,” the report, cited by Reuters, It also adds that the rise of indigenous oil producers could help the Federal Government achieve its goal of increasing crude oil output by one million barrels per day next year.
Nigerian Oil Firms Step Up
With international oil majors pulling back, Nigerian owned companies are stepping up with bold investments and plans to develop oil fields that were previously underutilised.
A good example came on Monday when Green Energy International Limited began operations at Nigeria’s first fully indigenous onshore crude export terminal, called the Otakikpo terminal. Located in OML 11 near Port Harcourt, this facility can handle up to 360,000 barrels of oil per day. Shell’s trading arm lifted the terminal’s first cargo.
The terminal is expected to unlock oil reserves from over 40 marginal fields in the Niger Delta fields that have been stranded for years due to a lack of infrastructure.
In another milestone, Conoil Producing Limited recently exported its first batch of crude from a new field under the Obodo blend in the OML 150 area. That cargo was lifted by Oando Trading, which now owns ENI’s former Nigerian assets.
Meanwhile, Renaissance Africa Energy the group that bought Shell’s onshore operations has announced plans to invest $15 billion over five years. Their target? Scale up oil output and double their gas production once a new domestic pipeline comes on stream.
Seplat Energy is also in the spotlight. The company, which is in the final stages of acquiring ExxonMobil’s shallow-water assets, has promised to reopen more than 400 oil wells that have been shut for years. Its CEO, Roger Brown, recently said Seplat would invest $320 million this year on new drilling and upgrades to infrastructure, aiming to increase daily output to 140,000 barrels.
Challenges Remain
Despite the optimism, experts warn that these local producers still face big hurdles. From pipeline vandalism and oil theft to disputes with host communities and outdated infrastructure, running oil operations in Nigeria is still risky and expensive.
“Security issues and ageing facilities mean higher costs for local operators,” said Mikolah Judson, an energy analyst with Control Risks, a global consultancy. “Fixing these problems is key to reducing costs and improving output.”
Still, there’s hope. Analysts say that the growing presence of Nigerian firms is in line with recent reforms under the Petroleum Industry Act. If these trends continue, local companies could play a central role in reversing Nigeria’s declining oil production and securing its place in the global energy market.
Bottom line
Nigeria’s story is changing fast. Local companies are no longer just backup players they’re now leading the charge. The road ahead may be bumpy, but the momentum is clearly on their side.