Slowly but gradually, indigenous firms in the country are making strong inroads into the Exploration and Production segment of the oil and gas sector.
Checks showed that from a lowly beginning for these firms over a decade ago, domestic firms are becoming influential operators in this sector, taking over assets of the International Oil Companies (IOCs).
Checks revealed that between 2015 and 2025, several indigenous firms have taken over onshore assets of multinationals, who for reasons ranging from oil theft, vandalism and irreconcilable differences with their host communities, have had to dispose off their assets onshore, opting to operate in the deepwaters where their operations are seemingly safer.
For instance, the asset takeover wave in the last decade began on March 2015, when Eroton Exploration & Production Company Limited announced payment of $737 million for Shell’s 30 per cent interest in Oil Mining Lease (OML) 18. This acquisition was part of a larger deal where Eroton also acquired additional stakes from Total and Agip, resulting in a 45 per cent interest in OML 18 for the consortium. The total value of the OML 18 acquisition for Eroton, including the additional stakes, was $1.2 billion. OML 18 is located in the in the Eastern Niger Delta.
Others included the sale of OML 29 and the Nembe Creek pipeline to the Aiteo group for $2.562 billion; OML 24 to Pan Ocean Corporation Nigeria Limited for $900 million.
On February 5, 2021, Heirs Energies paid $1.1 billion for a 45 per cent stake in OML 17, from a consortium including Shell, Total, and ENI. It also acquired another 45 per cent participating interest in OML 18 from Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited, and ENI, at a cost of $1.2 billion.
On August 22, 2024, Oando doubled its reserves and increased its participating interests in several key oil fields with its payment of $783 million to acquire the 100 per cent shareholding interest in Nigerian Agip Oil Company (NAOC) from Italian energy firm, Eni. The transaction increased Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent, including its ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which included 40 discovered oil and gas fields, of which 24 were currently producing as at the time of acquisition, approximately 40 identified prospects and leads; 12 production stations; approximately 1,490 km of pipelines; three gas processing plants; the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants with a total nameplate capacity of 960MW, and associated infrastructure. Based on 2022 reserves estimates, Oando’s total reserves at the time stood at 505.6MMboe and the transaction was expected to deliver a 98 per cent increase of 493.6MMboe, bringing the total reserves to 1.0Bnboe.
After a protracted take-over process, Seplat Energy finalised a deal to acquire ExxonMobil’s (previously known as Mobil Producing Nigeria Unlimited (MPNU)), Nigerian onshore assets in December 2024, for $1.28 billion. This included an initial consideration of $1.28 billion, with potential for up to $300 million in contingent payments over five years. The final consideration was later adjusted to $800 million, with $672 million payable at closing and a deposit of $128 million paid earlier.
The acquisition encompasses a 40 per cent operated interest in OMLs 67, 68, 70, and 104, along with other assets and personnel. The deal was subject to regulatory approvals, which were granted more than two years after the initial agreement was signed
On March 13, 2025, Renaissance Energy paid $2.4 billion for Shell’s onshore assets in Nigeria, which included the Shell Petroleum Development Company of Nigeria Limited (SPDC). This transaction, which was finalised after receiving the necessary approvals from the federal government, included an initial payment of $1.3 billion, with a further $1.1 billion expected for prior receivables and cash balances.
Other firms, including Waltersmith, Shoreline Power, Petrolin, Niger Delta Exploration & Production, Eland Oil and Gas, and Starcrest Nigeria have also acquired assets from IOCs in the past, including OML 30, OML 34, and OML 40.
These acquisitions represent a strategic shift towards greater local participation in Nigeria’s oil and gas sector and are expected to boost national production output. The impact of the indigenous firms take-over has not gone unnoticed in the sector and by extension the economy.
For instance, within four years of operation, Heirs Energies has ramped up its oil production to 53,000 barrels per day, with plans to increase production to 100,000 barrels per day within the next few years.
Seplat Energy’s current oil production capacity is at 120,000 to 140,000 barrels of oil equivalent per day (kboepd), a remarkable increase from its previous 50, 000 barrels per day. This figure is expected to increase as the firm is exponentially producing more oil after successfully activating 11 oil blocks.
“We’re now active in 11 blocks, eight of which we operate directly. We have seven onshore blocks and four shallow-water offshore blocks. With this acquisition, we formed Seplat Energy Producing Nigeria Unlimited (SEPNU) and now manage operations that connect seamlessly into three terminals—one offshore and two onshore. Our production has materially increased,” Chief Executive Officer, Roger Brown, told Forbes Africa/Penresa.
Seplat, with an with an asset base of 11 onshore oil blocks, 48 oil and gas fields, three export terminals and five gas processing facilities, now controls about 16 per cent of Nigeria’s present production capacity.
Oando, on its part, recorded an average production was 23,911 boe/day, compared to 23,258 boe/day in 2023. In 2024, it ramped up its production, consisting of 7,864 bbls/day of crude oil, 246 bbl/day of NGLs and 15,801 boe/day of natural gas.
The firm affirmed that its production increase was a result of additional volumes from acquisition of 20 per cent additional stake in the NAOC JV in Q4 offset by the impact of shut in wells for repairs from sabotage activities.
Heirs Energies’ Founder and Chairman, Tony Elumelu, speaking at a forum earlier in the year with the theme: “Nigeria’s Oil Production Growth Roadmap Acceleration Imperatives” attributed the improvements in oil production to the ongoing reforms initiated by President Bola Tinubu’s administration, which he said is being driven by incentives established through Executive Orders.
“We want to take production to over two million bpd. We know that we need oil money to diversify Nigeria away from oil. And we need to have the money to help develop our country”, Elumelu stated.
The Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, agreed that the impact of the indigenous producers has been phenomenal and hence, they need to be encouraged by government to do more.
He argued that the divestment by the multinationals to deepwater operations leaving the onshore operations to indigenous players is a good development for the industry.
“I think the success we have recorded in the divested onshore operations to indigenous players is not only an indication of the local players’ competence, but a clear manifestation of their ability to better manage the local environment than the multinational. Government should further encourage them in their operations because in the long run it will be a blessing for the country economically and technologically; they will also generate employment both directly and indirectly as ancillary services providers will equally spring up,” Dr. Yusuf said.
Citing the production data of both Seplat and Oando, Yusuf, an economist, said it is a clear indication that the country’s production capacity is bright.
“If in the short period of their taking over of the onshore assets from the former owners both firms have been able to record this feat, modest as it may appear, it is no mean achievement; it is an indication of hope for the production output and a boost that the 2.1 mbpd production output target may after all not be an illusion. But government needs to encourage them and provide that enabling environment for them to do more,” he argued.
The takeover by the locals has also led to better unemployment opportunities. For instance, Seplat, according to Brown, takes pride that its workforce now includes around 1,500 professionals- the vast majority of whom are Nigerians.
The increasing capacity to produce and peace now enjoyed in host communities, including reduction in oil theft, are all closely related to indigenous oil firms addressing host community issues through various strategies, including implementing the Host Community Development Trust (HCDT) as outlined in the Petroleum Industry Act (PIA) 2021.
These firms are also focusing on community relations, social investments, and environmental stewardship to foster positive relationships and sustainable development within their operational areas, including implementing an open communication channel with community leaders and members through regular meetings and dialogue, and funding projects that address key community needs, such as education, healthcare, infrastructure, and economic empowerment.
Equally, is the skill development like training and capacity-building programmes to enhance local workforce participation in the oil and gas sector, and addressing past grievances related to environmental damage and social injustice being addressed by the indigenous firms, have brought peace and stability to their operations.
