The Minister of State for Petroleum Resources, Heineken Lokpobiri, has blamed the departure of several multinational oil service companies from Nigeria on the role of middlemen in the industry.
Speaking at the Sub-Saharan Africa International Petroleum Conference in Lagos on Tuesday, an event organized by the Petroleum Technology Association of Nigeria (PETAN), Lokpobiri highlighted how middleman practices have negatively impacted the oil sector. He urged other African nations to avoid making the same mistakes as Nigeria.
According to the minister, global oil service giants such as Schlumberger, Halliburton, and McDermott exited the Nigerian market due to what he described as excessive reliance on intermediaries.
“We made mistakes, and I am pointing them out so that other African countries here today do not repeat them,” he said. “When I assumed office, one of the key challenges I faced was the mass exit of multinational oil service companies. They left, except for the Italian firm, Saipem. This created a monopoly in the sector.”
Lokpobiri acknowledged the contributions of PETAN members to the industry but insisted that the Nigerian oil and gas sector is vast enough to accommodate both local and international service providers. He emphasized that Nigeria’s offshore, shallow water, and deepwater operations exceed the capacity of local firms alone.
He further explained that the withdrawal of these international service providers increased production costs for the Federal Government, as it now bears a greater financial burden before sharing oil proceeds with its joint venture partners, including the Nigerian National Petroleum Company Limited (NNPCL).
Addressing industry professionals, Lokpobiri urged African nations to learn from Nigeria’s experience, stressing the importance of balancing local content growth with maintaining international expertise.
“Nigeria remains Africa’s leading oil and gas producer, not by accident but through deliberate policies that have fostered capacity development,” he added.
Meanwhile, PETAN Chairman, Wole Ogunsanya, reaffirmed the association’s commitment to strengthening industry collaborations. He noted that the theme of the conference, ‘Building Africa’s Future: Advancing Local Content and Sustainable Development in the Oil and Gas Industry,’ was carefully selected to drive a positive energy outlook for Africa.
He emphasized that PETAN would continue engaging with governments and key stakeholders to navigate the evolving oil and gas landscape in the region.