Managing Director of Renaissance Africa Energy Company Limited, Engr. Tony Attah, has stated that the transition through divestment is showing value in Nigeria’s oil and gas sector as more than 50 per cent of Nigerian crude oil production is associated with independents.
Speaking at the Nigerian Content Academy Lecture titled: “Finding Funds for Effective and Efficient Local Content Initiatives – IPPG Perspective,” Attah projected that “five big Nigerian independent oil companies will emerge in the next 10 years in Nigeria.”
The General Manager, Corporate Communications of the Nigerian Content Development and Monitoring Board (NCDMB), Dr Obinna Ezeobi, in a statement on Sunday, quoted him as also predicting that many indigenous oil and gas operators in Nigeria will within the next decade consolidate strategically and form consortiums to take advantage of emerging opportunities.
He stated that the future of the oil and gas industry and business in the world is about collaboration, expressing happiness at the significant growth in the operational and funding capacities of indigenous operating companies in Nigeria, which he said resulted in their successful acquisition and operation of fields recently divested by some international operating companies (IOCs).
He observed that “when IOCs leave matured basins in other climes, international independents take over from them. But Nigerian independents take over in Nigeria.
“That transition is showing value today. More than 50 percent of Nigerian crude oil production is associated with independents. I see a future where more Nigerian independents would have to consolidate.
“Renaissance is here, Seplat is here. The consolidation would have to be among the others to create the other three or five,” he added.
He shared insight on the successful formation of Renaissance Energy by a consortium of four Nigerian, and one international companies, namely ND Western Limited; Aradel Energy Limited; Waltersmith Petroleum Development Company Limited; First Exploration and Petroleum Development Limited; and Petrolin Trading Limited.
He attributed the success of the deal to enduring collaboration, tenacity and ambition among the founding companies.
Engr. Attah, a former Managing Director of Nigeria LNG Limited and Shell Nigeria Exploration and Production Company (SNEPCo) also outlined veritable funding mechanisms which players in the African energy sector could deploy to navigate global funding and operational challenges.
He dwelt exhaustively on Capital Markets/Stock Exchange Listing; Private Equity and Eurobond; Strategic Partnerships/Joint Venture Structures and International Oil Company (IOC) Carry Arrangements; Prepayment/Offtake Financing, and Bank Facility.
Professor Babs Oyeniyi, who participated from Edinburgh, United Kingdom, wondered why Nigeria’s oil and gas industry appears stuck with old, retired industry employees, continually inviting them to provide critical services.
Earlier in her opening remarks, the General Manager, Nigerian Content Academy, NCDMB, Ms. Doris Opuwari, noted that funding constraints have for so long constituted barriers to growth and expansion among indigenous players in the industry, expressing hope that the Guest Lecturer of the day, Engr. Attah was eminently qualified to point the way forward.