In a pivotal meeting with the Special Adviser to the President on Energy, Mrs. Olu Verheijen, a delegation from the Petroleum Technology Association of Nigeria (PETAN), led by Chairman Engr. Wole Ogunsanya, emphasised the urgent need to bolster indigenous capacity in Nigeria’s oil production sector.
This call comes as the country seeks to enhance its oil output in line with recent presidential directives.
Engr. Ogunsanya highlighted that PETAN, celebrating its 30th anniversary this year, has historically played a critical role in the oil and gas landscape, creating substantial value and retaining local capacities that surpass many international oil companies. He urged the federal government to support initiatives that ensure indigenous companies can fully engage in the industry, particularly in gas development and processing.
During the discussions, Ogunsanya pointed out the pressing need for a well-defined strategy to optimise production in land and swamp projects, which he believes could yield immediate economic benefits.
He criticised the current scarcity of rigs for oil production, suggesting that utilising available capacities in land and swamp projects could provide much-needed cash flow to the economy.
“With land projects being owned primarily by rising indigenous companies and independent producers, Nigeria is on a steady footing for these initiatives,” he noted.
Mrs. Verheijen acknowledged PETAN’s contributions but cautioned that indigenous companies must demonstrate their capacity to handle larger transactions. She stressed that while indigenisation is crucial, it should not come at the expense of competitiveness in the global market. The need for indigenous firms to engage in capital markets to secure funding for significant projects was highlighted as a necessary step for future growth.
The meeting also addressed the importance of addressing security challenges and high production costs, which have historically impeded the industry. Both parties expressed a commitment to collaborating with relevant stakeholders to tackle these issues, ensuring a conducive environment for investment and operational efficiency.
In addition, Engr. Ogunsanya shared details about PETAN’s upcoming 30th anniversary celebration scheduled for December 2024 in Lagos. This event aims to highlight the milestones achieved by indigenous companies in the past decades and reinforce PETAN’s role as a strong advocate for local participation in the oil and gas sector.
Mrs. Verheijen praised the ongoing efforts of PETAN, expressing hope for increased collaboration between the government and industry players.
She emphasised the significance of showcasing successful indigenous companies, stating that their stories could serve as inspiration and evidence of the potential for growth within the sector.
As Nigeria grapples with the challenges of being a significant energy exporter while remaining energy-poor, both PETAN and the government appear united in their vision to harness local capabilities for sustainable growth in the oil and gas sector. The meeting signals a hopeful direction toward enhanced collaboration that could redefine the future of Nigeria’s energy landscape, creating opportunities for job creation and economic diversification.