Waltersmith Petroman MD calls on FG to support indigenous oil producers

The Chairman and Chief Executive Officer, Waltersmith Petroman Oil Limited, Mr Abdulrazaq Isa, in a recent interview with The Punch asked the government to support the growth of the indigenous operators so as to ramp up the nation’s oil and gas reserves.

“We need government’s support to have access to resources at reasonable acquisition costs. I think government can work with us, indigenous companies, to build energy infrastructure for domestic utilisation of crude oil. That is very important. A strategic partnership can be built between the indigenous companies and government. Some of us are building a lot of gas plants now. Some of us are building mini refineries and modular refineries. Some of us will progress into building petrochemical and fertiliser plants because these are the things that we need to meet our population’s energy needs.”

“So, such a strategic relationship is necessary over the long term between us and government to support us in building capacity. And it is all around energy security for our country ultimately. We must do that because nobody is going to build our country for us.”

“I see potential opportunity for consolidation among indigenous operators. That I think is going to happen such that companies will begin to see the potential synergies among themselves and then be able to consolidate and strengthen themselves. I think that probably just like it happened in the banking sector, the number of indigenous operators will probably shrink as a result of this consolidation process. Either acquisitions or mergers can happen. I potentially see two or three companies looking at themselves and saying, ‘You have what I don’t have. If we come together, we can take advantage of what we both have.’ So, that is likely to happen in the next couple of years.”

Source: The Punch

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