The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, hailed Oando Energy Resources’ acquisition of two International Oil Companies (IOCs) as a milestone for Nigeria’s oil industry. In a meeting with Oando’s management, Lokpobiri emphasized the growing capacity of indigenous firms to replace IOCs and boost oil production. The Minister reaffirmed his goal for Nigeria to eventually create its own IOCs, with companies like Oando and Seplat leading the way.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has lauded Oando Energy Resources’ recent acquisition of two International Oil Companies (IOCs) as a pivotal moment for Nigeria’s oil and gas sector. During a meeting with Oando’s Managing Director, Alex Irune, and the company’s management team in Abuja, Lokpobiri expressed confidence in the capability of indigenous companies to lead the oil industry.
Lokpobiri highlighted that one of the significant challenges he faced upon assuming office was the Eni-Oando acquisition deal, and his ambition is to witness Nigeria’s own companies emerge as IOCs. “If Oando continues to acquire assets internationally, it will ultimately become an IOC,” Lokpobiri said, further noting that Nigerian companies like Oando and Seplat have developed substantial local capacity over the years.
He also stressed that Oando’s capabilities make it well-positioned to increase production and contribute to Nigeria’s economic growth, calling their acquisition of the two IOCs a potential “game-changer” for the nation’s energy sector.
Lokpobiri elaborated on his belief that the future of Nigeria’s oil industry lies with members of the Independent Petroleum Producers Group (IPPG), of which Oando is a leading player. The Minister recounted an inquiry made during a global forum in Davos, Switzerland, where he affirmed that Nigeria’s indigenous companies are fully capable of sustaining the industry without reliance on foreign players.
The Minister expressed optimism that Nigerian firms acquiring IOC assets will run them profitably and professionally, ensuring that the government continues to receive revenue from royalties and taxes. Lokpobiri reiterated his commitment to creating a conducive environment for both local and international oil companies to thrive in Nigeria.
Oando’s Managing Director, Alex Irune, thanked Lokpobiri for his leadership during challenging times and recalled the company’s journey from humble beginnings as a downstream fuel distributor to now holding significant stakes in two IOCs. Irune emphasized that Oando’s success demonstrates that Nigerians are capable of building world-class companies and competing with global oil giants.
As part of their vision, Oando now holds 40% interest in a Joint Venture with NNPC following the acquisition of 20% stakes from both ConocoPhillips and Eni. Irune expressed optimism that Oando will continue to inspire Nigerians and become a global IOC that competes with major players like Saudi Aramco and Chevron.
Lokpobiri concluded by stating that increasing oil production is essential to resolving Nigeria’s economic challenges, and he set a target of producing at least 2 million barrels per day by December 2024.
