- Osa Igiehon, CEO of Heirs Energies, stated that oil theft in Nigeria is deterring investment, alongside the global shift to renewable energy
- Despite challenges, Igiehon noted that divestment by International Oil Companies opens opportunities for indigenous firms to grow in Nigeria’s energy sector
Osa Igiehon, the CEO of Heirs Energies, has highlighted that oil theft in Nigeria is significantly deterring investment in the energy sector. He pointed out that this issue and the global transition to renewable energy are creating substantial challenges for the country.
Igiehon noted that despite these difficulties, the divestment by International Oil Companies (IOCs) from onshore oil production is opening up opportunities for indigenous companies to grow in the sector. He emphasized the impact of Africapitalism, a principle championed by his company, which focuses on investments that benefit the communities where profits are generated.
“We operate about five percent of Nigeria’s oil production and five percent of gas production into the domestic market. While the global narrative of energy transition focuses on moving from one energy source to another, Nigeria is experiencing a significant shift, with IOCs leaving onshore operations and being replaced by Indigenous companies. By the end of the decade, it is expected that most IOCs will no longer be active onshore, leaving the field to Indigenous companies,” Igiehon explained.
He added that Nigeria has the potential to produce between 2 to 2.5 million barrels of oil per day but is currently producing only about 1.2 to 1.5 million barrels per day. The primary reasons for this shortfall are oil theft and reduced investment due to the theft.
“This scenario has stifled investment in the sector. Additionally, the global push for energy transition has made securing financing for oil and gas projects more challenging,” he concluded.
Discussion about this post