Oil theft pushing investors away from Nigeria – Igiehon

The CEO of Heirs Energies and its, Osa Igiehon, has stated that oil theft in the country is making it difficult to attract investors in the sector.

Igiehon who stated that the issue is one of the myriad problems facing the country noted that the energy transition to renewable is also hampering investment into the sector.

He however said the divestment by International Oil Companies into onshore oil production is empowering indigenous to gains in the sector.

He noted that through the Africapitalism championed by the company, it is giving a new directive on investment that emphasises on the impact of those the profit is made from.

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“We operate about five percent of Nigeria’s oil production and five percent of gas production into the domestic market. Whilst we hear the global narrative of energy transition which talks about moving from predominantly one source of energy to another source of energy. In Nigeria, there is a big transition also going on not about energy sources but particularly onshore with IOC’s leaving and being replaced by indigenous companies. it is posited that by the end of the decade, most of the international oil companies will no longer be active onshore and they will now be indigenous companies.”

He added that Nigeria is in the position to produce 2 to 2.5m barrel oil per day “but today, we are only able to produce somewhere in the range of 1.2 to 1.5m barrel per day. There are a number of causative factors but the biggest is the theft while the second is the point of investment because of the theft.

“It has created a scenario where there has been stifling investment in the sector. Thirdly, there is a global push for energy transition that has made getting finances for oil and gas more challenging.”