The Petroleum Technology Association of Nigeria (PETAN) has called on indigenous oil and gas companies to consolidate their technical, financial and operational capabilities to compete for larger contracts and seize opportunities arising from petroleum asset divestments.

PETAN Chairman, Engr. Wole Ogunsanya, said Nigerian oilfield services companies must move beyond fragmented operations and build stronger businesses capable of executing projects worth millions and billions of dollars.

He said although local content initiatives had expanded the number of Nigerian-owned businesses participating in the petroleum industry, the next phase should focus on building companies with the scale, financial strength and technical expertise required to compete for major contracts.

Ogunsanya spoke during a high-level strategic panel session at the 2026 Energy Conference organised by the Association of Energy Correspondents of Nigeria (NAEC) in Lagos.

The conference theme was “From Diversification to Value: Scaling Nigeria’s Energy Ecosystem for Growth,” while the panel discussion focused on “Access to Assets: Empowering Players and Driving Growth.”

According to the PETAN chairman, indigenous companies should pool their resources and expertise where individual firms lack the capacity to execute large projects independently.

He disclosed that the association had introduced Technical Interest Groups (TIGs), which bring together members providing similar services to improve collaboration and strengthen their ability to secure major contracts.

“What we are starting, and have started, is what we call Technical Interest Groups, or TIGs. What this means is that members providing similar services are grouped together,” Ogunsanya said.

He explained that companies could combine their capabilities to execute contracts that would otherwise be beyond the reach of individual businesses.

“We say, look, if there is a $10 million job and you can only do $2 million, all other members within your Technical Interest Group should come together and ensure that you deliver that job at cost and on time,” he said.

PETAN promotes consolidation to strengthen local content

Ogunsanya said the approach had already been applied in Nigeria’s fabrication sector, where indigenous companies combined their capabilities to develop domestic capacity and compete for contracts previously executed outside the country.

He said the experience demonstrated that collaboration could help Nigerian firms overcome operational limitations, improve competitiveness and capture a larger share of expenditure in the oil and gas industry.

The PETAN chairman stressed that increasing the number of indigenous companies in the sector would not, by itself, guarantee greater participation in high-value projects.

Instead, he said, companies needed to develop the financial capacity, technical depth and organisational strength to manage more complex assignments and compete with established international service providers.

“We have many players in the industry. At a point, we have to consolidate,” he said.

Ogunsanya noted that consolidation could take different forms, including mergers, acquisitions and strategic partnerships, drawing parallels with the consolidation of Nigeria’s banking sector.

He expressed confidence that similar developments could occur in the oil and gas industry as investment opportunities expand and companies seek the capacity to execute larger projects.

“I see that happening within the industry as these opportunities emerge and mergers take place,” he said.

However, he clarified that consolidation was not intended to prevent new companies from entering the market. Rather, the objective was to strengthen existing players so they could compete effectively for major projects while allowing new businesses to emerge.

Indigenous companies seek priority in oil asset divestments

Beyond oilfield services, Ogunsanya urged relevant stakeholders to give indigenous companies priority consideration when oil and gas assets are put up for divestment.

“When assets are going to be divested, the indigenous companies should be considered first,” he said.

His call comes amid changes in ownership across Nigeria’s petroleum industry, creating opportunities for local operators to acquire assets and expand their participation in upstream exploration and production.

Greater indigenous participation in asset ownership and oilfield services, he argued, would help retain more value within Nigeria’s economy while deepening domestic technical expertise and industrial capacity.

However, acquiring and operating petroleum assets requires substantial capital, technical competence, infrastructure and effective management. Indigenous companies seeking to benefit from divestments must therefore demonstrate the ability to sustain production, maintain facilities and meet regulatory and environmental obligations.

Ogunsanya’s position highlights the need to move Nigeria’s local content agenda beyond the participation of numerous small companies towards the development of stronger indigenous businesses capable of competing across the oil and gas value chain.

The broader objective, he said, should be to equip Nigerian companies to secure larger contracts, take advantage of investment opportunities and deliver projects to international standards.

Industry leaders discuss access to assets and investment

Other participants at the NAEC conference panel included Austin Avuru, Executive Chairman and Founder of AA Holdings Limited; Mrs Cecilia Olajumoke Ajayi, President of the Nigerian Association of Petroleum Explorationists (NAPE); and Mrs Alero Balogun, General Manager of Corporate Communications at Oando Plc.

Chike Nwosu, Group Chief Executive Officer of HSI Energies Limited, moderated the session.

The discussion examined access to assets, industry participation and the measures required to strengthen the competitiveness of Nigerian companies as investment opportunities emerge across the energy sector.

For indigenous oil and gas firms, the challenge is increasingly shifting from gaining entry into the industry to securing the capital, technical expertise and operational scale needed to compete for larger contracts and acquire producing assets.

PETAN’s proposed Technical Interest Groups offer one approach to addressing these constraints by encouraging companies with complementary capabilities to collaborate rather than compete separately for projects beyond their individual capacity.

If supported by effective partnerships, financing and strong project execution, greater consolidation could help Nigerian businesses capture more value from domestic oil and gas spending, expand indigenous ownership and to develop indigenous firms with the scale, capacity and financial strength to compete for major opportunities across the oil and gas value chain.