Revitalizing Nigeria’s Oil and Gas Industry: A Strategic Vision for Growth and Transparency

Nigeria’s Ambitious Move to Boost Oil and Gas Production and Revenue
President Bola Tinubu’s Approval Paves the Way for Fresh Marginal Field Bid Round

Nigeria is taking decisive steps to rejuvenate its oil and gas sector by offering neglected oil and gas fields for sale to local Nigerian companies. President Bola Tinubu has given the green light for a fresh marginal field bid round, marking a significant development in the country’s energy industry.

Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, announced this landmark initiative during a visit to Waltersmith Petroman Oil Limited’s modular refinery in Ibigwe, Ohaji-Egbema Local Government Area of Imo State. The upcoming bidding process aims to address past difficulties and revitalise the potential of these fields for the benefit of the industry and the nation.

The decision to conduct a new bid round follows a previous attempt in 2020, when 57 marginal oilfields were put up for sale. However, many of the recipients of these fields have encountered challenges in developing the assets due to funding and regulatory obstacles. The new bidding process aims to alleviate these past difficulties and reinvigorate the potential of these fields.

This initiative reflects the government’s commitment to empowering local Nigerian companies and enhancing their participation in the oil and gas exploration and production space. By prioritising marginal fields located near modular refineries, the initiative aims to bolster domestic refining capacity and contribute to the nation’s energy security.

Senator Lokpobiri expressed appreciation for the support of Waltersmith Group and the Nigerian Content Development and Monitoring Board (NCDMB) in realising the agenda of improving domestic refining capacity. He underscored the pivotal role of modular refineries in addressing the country’s energy challenges. The successful operation of Waltersmith Petroman’s 5,000-barrel per stream day modular refinery stands as a testament to the potential benefits of smaller processing plants. Senator Lokpobiri urged companies with marginal field licenses to follow the lead of Waltersmith and make strategic investments to maximise the value of their allocated assets.

In recognition of the impressive progress made by Waltersmith, the government has pledged its support for the company’s expansion plans, reflecting the government’s dedication to fostering growth and innovation within the oil and gas sector.

The involvement of the NCDMB as an equity holder in Waltersmith’s refinery has been vital in facilitating its establishment and operations, underscoring the board’s commitment to driving industrialisation in Nigeria. The partnership between the NCDMB and Waltersmith serves as a model for promoting local content development and contributing to the nation’s economic advancement.

The Managing Director of Bank of Industry Limited, Nigeria, Dr. Olasupo Olusi, reiterated the institution’s commitment to supporting modular refineries as a viable solution to economic challenges. The Bank of Industry has actively partnered with the NCDMB and Waltersmith to promote local content production and address economic issues in Nigeria, highlighting the strategic importance of modular refineries in enhancing energy security and managing inflation.

Amidst these developments, the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Oil Producers Trade Section (OPTS) have stepped up efforts to strengthen transparency and accountability in the nation’s petroleum and mining sectors. A forum convened by the OPTS brought together oil firms and miners to deliberate on enhancing transparency and accountability in the extractive industries.

The Executive Secretary and Chief Executive Officer of NEITI, Dr. Orji Ogbonnaya, emphasised the significance of companies’ participation in the global Extractive Industries Transparency Initiative (EITI) and pledged to work with the OPTS to deepen and strengthen the Companies Forum. This collaborative effort aims to uphold transparency, accountability, and good governance in the extractive industries, ultimately fostering a conducive environment for businesses to thrive.

The Executive Director of OPTS, Mr. Gwueke Ajaifia, highlighted the significance of NEITI in providing crucial data and information to help stakeholders understand and manage the nation’s extractive resources. He stressed the importance of strengthening the NEITI-Companies Forum and rallying industry members to actively participate in promoting transparency and good governance.

These initiatives underscore Nigeria’s commitment to revitalising its oil and gas industry, empowering local companies, and promoting transparency and accountability in the extractive sectors. By fostering a conducive environment for growth and investment, Nigeria aims to bolster its energy production, revenue generation, and economic development.