Latest news with #PortHarcourt
Zawya
3 days ago
- Business
- Zawya
Local firms drive new growth phase in Nigeria's oil sector
LAGOS - Nigeria is witnessing a significant shift in its oil and gas landscape as local companies expand their roles, driving a new phase of potential sectoral growth and innovation. Leading the charge are companies which bought onshore and shallow water assets from oil majors planning billions of dollars of investments to develop abandoned fields. Smaller producers are also pulling their weight, for example Nigeria's first locally developed and operated onshore crude terminal, Otakikpo, began loading operations on Monday. Built by Green Energy Limited and located in the OML 11 block near Port Harcourt, it marks a milestone in local capacity. Shell loaded the first crude cargo through the 360,000 bpd capacity terminal on Monday, opening up potential drilling prospects for over 40 stranded fields in the region. Similarly, Conoil Producing Limited recently shipped the first cargo of its new Obodo crude blend from the onshore OML 150 in the Niger Delta. The cargo was lifted by Oando Trading, a subsidiary of Oando Plc which bought ENI's divested assets. Following this trend, Renaissance Africa Energy — after acquiring Shell's onshore assets — is committing to investing $15 billion over the next five years in its oil and gas operations. The company aims not only to balance its portfolio by increasing crude oil production but also to double its gas output once a key local gas pipeline is completed. Similarly, Seplat Energy, following its acquisition of ExxonMobil's Nigerian shallow-water assets, recently announced plans to reopen 400 previously shut-in wells. CEO Roger Brown said the company is set to invest up to $320 million this year in drilling campaigns and infrastructure, with the goal of boosting crude production to around 140,000 barrels per day. "We are focused on reviving existing wells, expanding drilling campaigns, and increasing gas volumes," Brown said during the company's annual general meeting. While these developments show the increasing role local producers are playing amidst government reforms, they are also grappling with challenges. "These operators face higher costs due to security challenges, community disputes, oil theft and ageing infrastructure – a key aspect of reducing costs for operators will be addressing these challenges," said Mikolah Judson, an analyst at global risk consultancy, Control Risk. These local players, signal a new phase for Nigeria's oil and gas sector and could provide support for the government's plan to raise oil output by additional 1 million barrels per day (bpd) next year, head of Nigeria's oil regulator said. They now account for over half of Nigeria's oil production from around 40% before the oil majors completed their divestment programmes according to the regulator's data.
Reuters
20-05-2025
- Business
- Reuters
Nigeria's fuel traders struggling to secure gasoline from refurbished state refineries, they say
LAGOS, May 20 (Reuters) - Nigerian fuel traders are struggling to secure gasoline supplies from two newly refurbished state-run refineries six months after they were declared operational, they say, leaving them reliant on the privately owned Dangote oil refinery and imports. Nigeria, which has suffered years of fuel shortages, has spent about $2.4 billion since 2021 to revive the long-mothballed state-owned Port Harcourt and Warri refineries in the Niger Delta to end reliance on imported refined products. The initial phase of the refurbishment was declared complete in December 2024. However, fuel trading group the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said its more than 6,700 members were still dependent on imports and the Dangote Refinery, Africa's biggest, which is yet to reach full production capacity. According to data from the regulator, by March, the last month for which full data is available, there was no gasoline output at Port Harcourt, previously Nigeria's largest refinery. In the same month the Dangote refinery produced 20.6 million litres of gasoline, with imports adding another 25.19 million litres to supply - equivalent to 92% of Nigeria's 50 million litre-per-day gasoline market. The Port Harcourt plant continues to refine diesel. NNPC, which operates the Port Harcourt and Warri refineries, did not respond to a request for comment on the reason for the lack of gasoline supply. PETROAN said there should be transparency on the state of the refineries, adding in a statement that Nigerians "want to know the exact date of delivery of the revamp project". Heads of Nigeria's four state-owned refineries were fired by the newly appointed NNPC CEO on April 30, about a month after his appointment. Nigeria spent 15.4 trillion naira ($9.63 billion) on gasoline imports last year, more than doubling 7.51 trillion naira spent in 2023 according to data from the National Bureau of Statistics, a bill that authorities want to drastically reduce by processing the product locally. ($1 = 1,599.3400 naira)
