Elumelu advocates synergy between IOCs, local oil firms

BY MOTOLANI OSENI

The Chairman, Heirs Holdings Group and the Chairman, United Bank for Africa (UBA), Tony Elumelu, has called for strong collaboration between International Oil Companies (IOCs) and indigenous operators towards achieving sustainable development of the oil and gas sector.

Speaking during the 3rd anniversary of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) earlier in the week in Abuja, Elumelu called on international oil companies to increase collaborations with indigenous firms.

He explained that the nation’s economy is heavily dependent on oil, calling for sustainable solutions to save Nigeria’s inheritance.

According to him, Nigeria’s oil production has been on a downward trajectory, falling from peaks of over 2 million barrels per day to recent lows, below 1.5 million.

“This decline translates to loss of revenues, reduced global market share, and missed opportunities for national development. The root causes are multifaceted: aging infrastructure, security challenges in the Niger Delta, stalled investments, regulatory uncertainties, and a global shift towards renewable energy that has compounded the investment challenge.”

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Elumelu said, he has a clear vision for Africa, hence his advocacy for Africapitalism, explaining that Africapitalism ensures shared prosperity, environmental sustainability and community development to enable the younger generation to reap great wealth.

“Firms, such as Heirs Energies, that have taken your traditions of best practice and global standards and integrated them into proudly indigenous capabilities, and others, are truly capacitized partners.

“By combining your global expertise with our local knowledge and commitment, we can drive innovation and excellence across the entire value chain, effectively addressing the challenges we face. The private sector has the power to transform the continent through long-term investments, but it must work collaboratively with the public sector”, he said.

On the theme of the programme— ‘Transformation, Innovation & Excellence,’ Elumelu said it resonates with the challenges and opportunities facing Nigeria’s energy space.

Commending the NUPRC for the Project 1 million barrel of oil (1MMBOPD) launch, Elumelu said the initiative is a crucial part of the solution to unlocking the next phase of development in the sector.

“By targeting to grow production by 1 million barrels of oil per day from current levels, we are setting a clear and challenging goal; one that I believe is achievable as I see all stakeholders are at the table and will commit to play their parts and bring the needed collaboration, innovation, and excellence to make this project a success, for the benefit of our country.

“To be sustainable, this initiative should go beyond just increasing production; it should catalyse a comprehensive strategy to revitalize our entire upstream sector.”

The Entrepreneur highlighted his expectation for the project as infrastructural modernisation to upgrade aging facilities, security enhancement, regulatory streamlining, and embracing cutting-edge technologies to optimise production and reduce environmental impact.

“By addressing these areas comprehensively, we will not only aim to reach the 1MMBOPD target but also to create a sustainable framework for future growth,” he stated.

Elumelu also lauded the NUPRC’s leadership for its efforts in the Nigerian Gas Flare Commercialisation Programme, which has brought the innovation required to balance environmental stewardship with economic growth.

Stressing the need to focus more on gas, the renowned investor said, the path to 1MMBOPD must be constructed on strategies that maximise the value of gas resources to reduce flaring, rather increase utilization for domestic and export markets.

To him, “the dual focus will help diversify our energy portfolio and mitigate the risks associated with over-reliance on oil.

“We know the criticality of gas in improving access to electricity in Nigeria. Access to electricity is the single most important factor in our quest for industrialisation. You can now see that our oil and gas sector is pivotal to the development of our country.”