Oando: Indigenous firms must step up to drive growth in Nigeria’s energy industry 

Oando Plc says indigenous companies must step up to drive growth in Nigeria’s oil and gas industry.

Akinbambo Ibidapo-Obe, general manager of commercial at Oando Energy Resources (OER), spoke at a three-day workshop in Lagos, according to a statement on Sunday.

The event, known as the 2024 Nigeria Annual International Conference and Exhibition (NAICE), was organised by the Society of Petroleum Engineers (SPE).

Speaking at the event, Ibidapo-Obe shared Oando’s strategies and preparations for the indigenous oil companies’ (IOCs) divestment, underscoring the company’s proactive approach.

He described the current spate of divestments as an inevitable reality the indigenous companies have been actively preparing for.

He also called on the IOCs to drive growth in the industry.

“Where we are now is a confluence of opportunity and preparation,” Ibidapo-Obe said.

“The government has been deliberate about ensuring the transfer of knowledge from the IOCs to the indigenous companies over the years.

“Oando, along with other indigenous companies, has also proven its technical abilities to operate and manage these assets through the marginal fields program and earlier divestments.

“It is now time for indigenous companies to step up, prove themselves on this global stage and drive significant growth and innovation in the industry.”

On the importance of growth and measures to take, Babafemi Onasanya, general manager of subsurface at OER, said partnerships are not just critical but essential to the development of the sector.

Onasanya was represented by Ainojie Alex Irune, executive director at Oando Plc and chief operating officer at OER.

He stressed the industry’s reliance on joint venture (JV) partnerships between operators and the Nigerian government, underscoring the importance of collaboration and shared goals.

“As more indigenous players take up prominent roles in the industry, they will need to secure key partnerships in critical areas for efficiency and sustainability,” he said.

“The first necessary partnership is with financial advisors and off-takers to either fund the capital-intensive nature of the business, or to provide advisory to source and secure funding.

“The second is a deliberate, engaging and adaptable partnership with host communities to encourage better dialogue and impact.

“Lastly, we need strategic partnerships with technology partners to address different areas of specialisation.”

According to the statement, the workshop was sponsored by IOCs and indigenous energy companies like Oando, Seplat, and off-takers, among others.

The conference had in attendance Heineken Lokpobiri, minister of state for petroleum resources (oil), Ekperikpe Ekpo, minister of state for petroleum resources (gas), Mele Kyari, group chief executive officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL).

Others are Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), among other stakeholders.