Thread by @Oando_PLC

The last 25 years have seen the role of indigenous companies evolve. The IOCs used to lead production on the African continent, but today indigenous companies are gradually evolving and making significant production contributions. #OandoAtAOW2018 /1

In terms of production and resources, there has been huge growth on the continent. While Nigeria remains the largest oil producing country in Africa,  there have been discoveries across the continent which have created competition for investment capital. #OandoAtAOW2018 /2

There has however been a decline in the contribution of African countries to oil production worldwide. This is mostly a function of reserves and development capital. #OandoAtAOW2018 /3

In the Middle East, for example, the reservoirs are more prolific and development cost per barrel much lower. They can produce several thousands of barrels from one well / field but African countries will produce the same quantity from several wells / fields. #OandoAtAOW2018 /4

The major challenge in African oil and gas is that most of our policies are not harmonised. Secondly, our facilities are exposed to corrosion because they are mostly in water, and then there is vandalisation by militants especially in Nigeria. #OandoAtAOW2018 /5

All these factors have really slowed down the production growth in Nigeria specifically.  #OandoAtAOW2018 /6

Speaking to the future of oil, an interesting school of thought is that there will be a huge reduction in demand and possibly no market for oil and gas, especially with the shift to renewables. #OandoAtAOW2018 /7

In my opinion, demand will definitely reduce, but there will always be a market for oil and gas, because demand growth for oil in sectors like petrochemicals, heavy industry, aviation, and other heavy transport keeps expanding significantly. #OandoAtAOW2018 /8

The demand for fuels from developing countries will also ensure that demand for oil and gas stays high. Demand will definitely shift but oil and gas will still be relevant. - Babafemi Onasanya, GM, Sub-Surface #OandoAtAOW2018 /9