Nigeria can slash oil production costs with local chemicals, expert says

Nigeria can substantially cut its oil production costs by prioritizing the local formulation and manufacturing of specialized oilfield chemicals, according to chemical engineer Godswill Chidiebere Agomuo. He argues that such a shift would not only decrease expenses but also foster crucial technology transfer and strengthen the country's overall technical expertise in the vital oil and gas sector.

Agomuo's call emphasizes a strategic move towards self-sufficiency in a key area of the petroleum industry. Currently, Nigeria relies heavily on imported chemicals, which contributes to higher operational expenditures. By developing domestic capabilities, the nation can gain greater control over its supply chain and reduce its vulnerability to global market fluctuations.

The expert highlighted that reducing operating costs, estimated at around $40 per barrel on average, is essential for maximizing the profitability of Nigeria's oil resources. Promoting local production of these specialized chemicals is seen as a direct pathway to achieving this goal, while simultaneously building a more robust and technologically advanced domestic industry.

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increased local formulation and production of specialised oilfield chemicals, saying the move could reduce operating costs, promote technology transfer and strengthen Nigeria’s technical capacity in the oil and gas industry.