Page 9 - Nigeriaone mag 2 edition en

Rising opportunities for local oil firms to expand

Eloko, Lekki, Nigeria

The Local Content Act has com- servoirs, machines… by com- To boost and encourage local
pleted the transformation of the munity and criminal groups. firms, Nigerian government just
oil sector. Even though the tar- Septa Energy, Nigeria’s leading awarded petroleum prospecting.
get to achieve in-country value energy supplier has made the licenses to 161 marginal fields
addition of 70% within 10 years headlines when it bought the companies, allowing them to
has fallen short, the Act has ne- offshore shallow water business conduct extensive exploration
vertheless achieved some of ExxonMobil in Nigeria for activities, remove and dispose
success. $1.2 billion. of commercially feasible petro-
50% of all engineering jobs are The fuel crisis has also led to leum discovered during pros-
done by Nigerians and 40% of the proliferation of artisanal pecting operations. The govern-
marine vessels are produces in refineries in the oil-producing ment has also issued new gui-
Nigeria. Thousands of jobs have Niger Delta region. The recently delines for the development of
been created and the service signed Petroleum Industry Act “marginal fields” which favor
companies has risen from 44 to (PIA) 2021 aims to pave the way local companies, as part of the
92 in 10 years. for increased investment in requirements and implementa-
The legislation passed last year Nigeria’s crude oil refining tion process of the Petroleum
requires all exploration and capacity. Industry Act (PIA) 2021.
production companies to set up Recently, there has been increa-
host community development sed interest from the Nigerian
trusts for the benefit of the government’s petroleum minis-
areas in which they operate. try in modular refineries as a
Local firms in the sector have means of addressing the deficit
emerged over the past decade of petroleum products.
in the wake of international Modular refineries are simpli-
companies moving out of fied crude oil refineries with
Nigeria. Some of them move capacities ranging from 1,000 to
into deeper water to avoid cri- 30,000 barrels per day. They are
minal damage to their assets well-suited for remote areas.
onshore such as pipelines, re-
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