Independent oil producers now pump half of Nigeria’s crude – Avuru

By Adewale Sanyaolu

A Non-Executive Director of the Nigerian National Petroleum Company (NNPC) Limited, Mr. Austin Avuru, has disclosed that indigenous oil companies now contribute about 50 per cent of Nigeria’s total crude oil production.

Avuru stated this in his webinar presentation at the Nigerian Content Academy (NCA) 4th Lecture Series with the theme, “Indigenous Operators as Pillar for Local Content Growth,” organised by the Nigerian Content Development and Monitoring Board (NCDMB). He lamented that as of 2023, 11 independents were producing 427,000 barrels per day (bpd).

However, he said the story has changed today (2025) due to the conclusion of some divestment deals, which has seen some assets move from International Oil Companies (IOCs) to independent oil producers and a reduction in oil theft figures.

Avuru listed current production figures from independent oil producers to include: Renaissance – 270,000 bpd; Seplat Energy – 250,000 bpd; Heirs Energies – 52,000 bpd; First E&P – 50,000 bpd; Aiteo – 45,000 bpd; Heritage – 45,000 bpd; Neconde – 40,000 bpd; and others – 100,000 bpd, bringing total production to 852,000 bpd.

Avuru, who is also the Chairman of AA Holdings and a former Chief Executive Officer (CEO) of Seplat, added that Nigerian independents are also largely responsible for domestic gas supply, with Seplat injecting 750mmscfd, ND Western 350mmscfd, and Heirs 300mmscfd, bringing total production to 1.52bcfd.

He disclosed that part of the challenges leading to shortfalls in oil production could be linked to limited capacity in the service sector, which has ultimately led to severe execution capacity constraints.

Other setbacks, according to him, are third-party logging and well intervention equipment, and dearth of training and development opportunities.

He said for 15 years, the industry, through the NCDMB, has deliberately subsidised the operations of indigenous companies for the country to build capacity, saying these were some of the reasons why some jobs were reserved for local companies even though the cost of execution is more expensive compared to that of foreign firms.

“What we are saying is that this subsidy is meant to drive development of capacity. That is why the country and the industry made this sacrifice. The point now is, where do we start drawing the line and phasing this subsidy out so that we have a level playing field, where those who have built capacity will operate in their areas of expertise, and the capacity that is not available would be brought in from outside so that the industry would start enjoying reduction in cost of production and taking away the subsidy that has been there in the last 15 years.”

He charged the industry regulators, NCDMB and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to devise purpose-driven regulatory practices where all stakeholders get value for their efforts and investment.

He added that local content shouldn’t be an all-comers affair but only for those who have shown capacity and capability, and not just because they are indigenous companies.

“I recall when I was at Seplat that we had an internal policy that even when an indigenous company can do the same job even at a 10 per cent cost premium, we will give it out to the indigenous company. However, we must strike the balance between quality service and cost, and the fact of giving the job because it is an indigenous company.”