Ambassador Ibe Lauds Indigenous Oil Firms & PINL For Boosting Nigeria’s Crude Oil Production

Amb Emeni Ibe credited private security companies for the improved fight against vandalism and oil theft. He confirmed the historic surge in Nigeria’s crude oil production, with indigenous oil companies surpassing their international counterparts for the first time in nearly seven years.

The ONC PG also commended the role of private security agencies, particularly Pipeline Infrastructure Nigeria Limited (PINL), for their efforts in combating crude oil theft and pipeline vandalism, noting that their interventions have significantly improved pipeline integrity and crude deliveries.

Ambassador Emeni Ibe made the remarks at the monthly stakeholders meeting of the month of March in Port Harcourt, Rivers State, attributing the production milestone largely to the divestment of onshore and shallow-water assets by International Oil Companies (IOCs) to indigenous operators.

According to him, asset transfers from major oil multinationals such as Shell, ExxonMobil, and Eni to local firms including Seplat, Oando, and Renaissance have injected an estimated additional 300,000 barrels per day into Nigeria’s national output.

“From Shell to Renaissance, ExxonMobil to Seplat, Eni to Oando — NDPR to ARADEL these are not just transfers of assets; they are transfers of confidence, capability, and ownership,” Ambassador Emeni Ibe said.

He explained that several divestment transactions, which had been stalled for years, were expedited under the administration of President Bola Ahmed Tinubu. Renaissance, one of the beneficiaries of the divestment wave, has reportedly doubled its production capacity, achieving a 100 per cent output growth and demonstrating the capacity of indigenous operators to extract greater value from assets previously managed by international majors.

The Orashi National Congress President General noted that the surge in local ownership comes amid sustained efforts to reverse years of production decline caused by crude oil theft, pipeline vandalism, and underinvestment. For much of the past decade, Nigeria’s crude output had remained below its OPEC quota, resulting in billions of dollars in lost revenue.

In a bid to reverse the trend, the Federal Government, through the Office of the National Security Adviser (ONSA) and the Nigerian National Petroleum Corporation Limited (NNPCL), awarded contracts years ago for the protection of oil and gas pipelines to private security companies, in line with provisions of the Petroleum Industry Act (PIA).

Pipeline Infrastructure Nigeria Limited (PINL) was assigned responsibility for the Eastern Corridor of the Trans Niger Pipeline (TNP).

The NNPCL, through its Project Monitoring Office (PMO), has since confirmed that the TNP has remained “green” for over a year, indicating uninterrupted crude oil flow and stable production.

Industry executives at the summit attributed the improved output to enhanced security, regulatory reforms, and sustained implementation of the Petroleum Industry Act enacted in 2021 after nearly two decades of legislative delays.

 Recently the Chairman of the Independent Petroleum Producers Group, Adegbite Falade, said oil production in the upstream sector has increased significantly due to improved export pipeline availability, reduced crude oil losses, and stronger contributions from indigenous producers.

“Oil production in the upstream sector has been scaled up significantly, supported by increasing export pipeline availability, reduced crude oil losses, and stronger indigenous contribution to production,” Falade said, he is the MD ARADEL HOLDINGS PLC

He disclosed that independent producers now account for more than 50 per cent of Nigeria’s total crude oil output and praised government efforts to rebuild investor confidence through targeted executive orders and accelerated regulatory approval processes.

“We are very proud of the achievements of PINL” Ambassador Ibe said.