Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

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Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

The Nigerian Navy, under the ongoing Operation Delta Sentinel, has recovered a significant quantity of illegally refined petroleum products concealed deep within forested areas of Rivers State, intensifying its crackdown on crude oil theft and related economic sabotage across the Niger Delta.

The latest operation comes barely a week after personnel of the Forward Operating Base (FOB) Lekki intercepted about 1,800 litres of suspected stolen Automotive Gas Oil (AGO) during an intelligence-led raid targeting illegal petroleum activities in the Ibeju-Lekki axis of Lagos State.

In a separate but related development, personnel of FOB Badagry also seized 130 bags of foreign parboiled rice during an anti-smuggling operation along the Badagry waterways.

Confirming the latest development, the Director of Naval Information, Captain Abiodun Folorunsho, said operatives of Operation Delta Sentinel sustained their offensive against crude oil theft and illegal refining activities with the recovery of approximately 1,600 litres of suspected illegally refined AGO in Rivers State.

According to him, the operation was carried out by personnel of the Nigerian Navy Ship (NNS) Soroh following credible intelligence on the movement and concealment of illegally refined petroleum products around Okolomade Community in Abua-Odual Local Government Area of Rivers State, near the boundary with Ogbia Local Government Area of Bayelsa State.

“Acting swiftly on the intelligence, the Anti-Crude Oil Theft (Anti-COT) team deployed to the Orashi Forest area where aerial surveillance using an unmanned system led to the identification of several sacks suspected to contain illegally refined AGO concealed beneath grasses within the forest.

“Subsequent exploitation of the area resulted in the recovery of 16 sacks containing approximately 100 litres each, amounting to an estimated total of 1,600 litres of product suspected to be illegally refined AGO.”

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Folorunsho explained that the suspects fled the scene upon sighting naval personnel, adding that no arrests were made during the operation.

He noted that the recovered products were evacuated and processed in line with established operational procedures.

He said the operation further demonstrates the Nigerian Navy’s resolve under Operation Delta Sentinel to dismantle illegal refining networks and deny economic saboteurs freedom of operation within the nation’s maritime and littoral domains.

Captain Folorunsho also reaffirmed the Navy’s determination to sustain pressure on criminal elements involved in crude oil theft and other forms of economic sabotage.

“There will be no safe haven for criminal elements engaged in crude oil theft and other forms of economic sabotage, as ongoing operations are designed to give such elements no breathing space across the nation’s waterways and adjoining creeks,” he stated.