Nigeria's independent oil firms boost output and eye regional expansion

Nigerian independent oil producers are rapidly increasing output as crude prices stay above $100 a barrel, a situation driven by supply disruptions such as the closure of the Strait of Hormuz. By acquiring divested on‑shore assets from majors like Shell, ExxonMobil, Agip and Equinor, firms such as Oando Energy Resources, Petralon Energy and the Pan Ocean‑Newcross consortium plan to add another 200,000‑300,000 barrels per day by year‑end, bringing total national production to about 1.6 million barrels per day – the highest level in nearly three years.

Supported by President Bola Tinubu’s new fiscal incentives and streamlined contract approvals, these companies are now looking beyond Nigeria’s saturated on‑shore market. Firms such as Heirs Energies, which doubled its output after buying a Shell lease, are targeting expansion across West and East Africa, citing opportunities in Angola, Equatorial Guinea, Gabon and Congo where international majors are exiting. Their experience navigating security, community relations and regulatory challenges is seen as a competitive advantage in those markets. However, the regional growth plans face financing constraints, as domestic banks limit oil‑sector exposure and international project finance remains costly.

The surge in production and the shift toward pan‑African operations underline a strategic transformation of Nigeria’s oil sector from a domestically‑focused industry to a potential regional player.