In a seismic shift reshaping Nigeria’s oil and gas landscape, homegrown companies are aggressively snapping up assets divested by international oil majors (IOCs), signaling a new era of resource control and operational dominance. Over the past 30 months, firms like Seplat Energy, ND Western, and Oando have outpaced foreign rivals in acquiring onshore and shallow-water acreages, capitalizing on ExxonMobil, ENI, and Shell’s retreat from risk-prone terrains.
Austin Avuru, founder of AA Holdings and a key architect of Seplat’s rise, believes Nigerian independents are just getting started. “A vast opportunity awaits in the next round of divestments,” he told Africa Oil & Gas Report in an exclusive interview, hinting at plans to leverage Platform Petroleum and Pillar Oil—where he holds substantial stakes—to “create another credible independent.”
The Divestment Wave
Since 2009, IOCs have sold over $5 billion worth of Nigerian assets, but the pace has accelerated since 2021. Shell alone offloaded 18 Oil Mining Leases (OMLs) to Renaissance, a consortium including ND Western and Aradel. ExxonMobil transferred its entire shallow-water subsidiary to Seplat, while ENI exited its onshore holdings via Oando. Today, Nigerian independents control ~15% of onshore and shallow-water production, up from less than 5% a decade ago.
Avuru’s A.A. Holdings, with an 8% stake in Seplat, is now rallying Platform Petroleum (3,000BOPD Egbaoma field) and Pillar Oil (4,500BOPD Umuseti field) to form a “war chest” for future deals. A joint investment vehicle between the three firms aims to pool equity and debt to bid for marginal fields and larger divested assets. “We’re planning a 2024 roadshow to lock in partnerships and funding,” Avuru revealed.
Why Local Firms Are Winning
Nigerian independents are thriving due to three factors:
1. Cost Efficiency: Lower overheads and familiarity with community dynamics reduce operational risks.
2. Gas Monetization Prowess: Firms like Platform Petroleum already supply 30MMscf/d of gas, blending oil profits with midstream margins.
3. Strategic Agility: Unlike IOCs burdened by global ESG pressures, local players can pivot quickly.
“If the right assets hit the table tomorrow, we’ll be active participants,” Avuru asserted, referencing Shell’s ongoing divestment of its $2.4 billion stake in SPDC.
The Next Frontier
With majors like TotalEnergies reportedly eyeing exits, analysts predict Nigerian independents could control 25% of onshore production by 2026. However, challenges linger: funding gaps, pipeline vandalism, and rig shortages threaten progress.
Avuru remains bullish: “We’re not waiting. We’re building the operational muscle to grow reserves and revenue.”
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Why It Matters:
This shift marks Nigeria’s most significant energy sector realignment since independence. As IOCs focus on deepwater projects, homegrown firms are stepping up—but success hinges on financing, security, and gas infrastructure. For investors, the message is clear: Nigeria’s upstream future is increasingly local.
