…Credits Private Security for Curbing Oil Theft

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has confirmed a significant surge in Nigeria’s crude oil production, with indigenous oil companies overtaking international oil companies (IOCs) for the first time in nearly seven years.

Lokpobiri also commended private security firms, particularly Pipeline Infrastructure Nigeria Limited (PINL), for their critical role in the fight against crude oil theft and pipeline vandalism, noting that their interventions have substantially improved pipeline integrity and crude oil deliveries.

The minister made the remarks at the opening ceremony of the Nigerian International Energy Summit in Abuja, attributing the production milestone largely to the divestment of onshore and shallow-water assets by IOCs to indigenous operators.

According to him, asset transfers from major multinationals such as Shell, ExxonMobil and Eni to local companies including Seplat, Oando and Renaissance have added an estimated 200,000 barrels per day to Nigeria’s national crude oil output.

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

He explained that several divestment deals, which had been stalled for years, were fast-tracked under the administration of President Bola Ahmed Tinubu. Renaissance, one of the beneficiaries of the divestment programme, has reportedly doubled its production capacity, recording a 100 per cent increase in output and underscoring the growing capacity of indigenous operators to maximise value from assets previously managed by international majors.

The minister noted that the rise in local ownership coincides with sustained efforts to reverse years of declining production caused by crude oil theft, pipeline vandalism and underinvestment. For much of the past decade, Nigeria’s crude oil output remained below its OPEC quota, resulting in billions of dollars in lost revenue.

To address the challenge, the Federal Government, through the Office of the National Security Adviser (ONSA) and the Nigerian National Petroleum Company Limited (NNPCL), awarded pipeline protection contracts to private security firms two years ago, in line with provisions of the Petroleum Industry Act (PIA).

Under the arrangement, 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, has since confirmed that the TNP has remained “green” for more than a year, signifying uninterrupted crude oil flow and stable production.

Industry leaders at the summit also 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 delays.

Chairman of the Independent Petroleum Producers Group, Adegbite Falade, said crude oil production in the upstream sector has risen significantly due to improved export pipeline availability, reduced 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 disclosed that independent producers now account for more than 50 per cent of Nigeria’s total crude oil output and praised government efforts to restore investor confidence through targeted executive orders and accelerated regulatory approval processes.