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Green Energy completes first onshore Otakikpo terminal

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Conoil launches Obodo crude grade

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Renaissance Energy plans $15 bln investment over 5 years

By Isaac Anyaogu

LAGOS, June 3 (Reuters) - Nigeria is witnessing a

significant shift in its oil and gas landscape as local

companies expand their roles, driving a new phase of potential

sectoral growth and innovation.

Leading the charge are companies which bought onshore and

shallow water assets from oil majors planning billions of

dollars of investments to develop abandoned fields.

Smaller producers are also pulling their weight, for example

Nigeria's first locally developed and operated onshore crude

terminal, Otakikpo, began loading operations on Monday. Built by

Green Energy Limited and located in the OML 11 block near Port

Harcourt, it marks a milestone in local capacity.

The terminal has a capacity of 360,000 bpd, which could open

up potential drilling prospects for over 40 stranded fields in

the region.

Similarly, Conoil Producing Limited recently

shipped the first cargo of its new Obodo crude blend from the

onshore OML 150 in the Niger Delta. The cargo was lifted by

Oando Trading, a subsidiary of Oando Plc which bought

ENI's divested assets.

Following this trend, Renaissance Africa Energy - after

acquiring Shell's onshore assets - is committing to investing

$15 billion over the next five years in its oil and gas

operations. The company aims not only to balance its portfolio

by increasing crude oil production but also to double its gas

output once a key local gas pipeline is completed.

Similarly, Seplat Energy, following its acquisition

of ExxonMobil's ( XOM ) Nigerian shallow-water assets, recently

announced plans to reopen 400 previously shut-in wells. CEO

Roger Brown said the company is set to invest up to $320 million

this year in drilling campaigns and infrastructure, with the

goal of boosting crude production to around 140,000 barrels per

day.

"We are focused on reviving existing wells, expanding

drilling campaigns, and increasing gas volumes," Brown said

during the company's annual general meeting.

While these developments show the increasing role local

producers are playing amidst government reforms, they are also

grappling with challenges.

"These operators face higher costs due to security

challenges, community disputes, oil theft and ageing

infrastructure - a key aspect of reducing costs for operators

will be addressing these challenges," said Mikolah Judson, an

analyst at global risk consultancy, Control Risk.

These local players, signal a new phase for Nigeria's oil

and gas sector and could provide support for the government's

plan to raise oil output by additional 1 million barrels per day

(bpd) next year, head of Nigeria's oil regulator said.

They now account for over half of Nigeria's oil production

from around 40% before the oil majors completed their divestment

programmes according to the regulator's data.