Udobong Ntia, the Executive Vice President of Upstream at the Nigerian National Petroleum Company Limited (NNPCL), has recommended the use of “third-party” operators for idle and unproductive oil and gas assets across Nigeria in a bid to boost the country’s crude oil production.
He made the recommendation on Thursday at the Heirs Energies Leadership Forum 2025 – Industry Leadership Discourse, which was attended by Nairametrics.
The event brought together oil and gas industry leaders, regulators, federal government officials, and relevant stakeholders to discuss how to make Nigeria energy self-sufficient.
Strategic Imperatives to Boost Nigeria’s Oil and Gas Industry
Sharing insights on how stakeholders can move the industry forward, Ntia identified three key issues affecting the industry: contracting, aged facilities, and security.
- He noted that government funding had largely been addressed.
- He advised stakeholders not to focus too much on contracting, as prolonged delays often lead to escalating costs.
Ntia further called for collaboration, emphasizing that many unproductive oil and gas assets are being hoarded by asset owners or operators, which calls for intervention from third-party operators or investors.
“I would like to see a shift toward more collaboration,” he said.
“The ultimate goal is to bring these fields into production. There’s no point in holding onto an asset if you don’t have the capital, aren’t ready to produce, and are just holding onto it. How about we bring in third-party operators? You can still be the operator, maintain oversight, and relinquish a bit of control to see these assets come alive with production.”
- He added that when operators share technology in this area and bring in third-party operators to work on other aspects, the result would be an increase in crude oil production.
- Ntia acknowledged the target of nearly 2 million barrels per day set by regulators but stated, “We are going to have to collaborate.”
“Everybody will need to collaborate. Everyone should focus on what they do best. For areas where they lack the capital or resources, let those who can operate on a cost-revenue basis take on the work,” he advised.
According to him, everyone benefits from collaboration as stakeholders work together to unlock Nigeria’s oil potential for the economic benefit of all parties involved.
What You Should Know
Some weeks back, President Bola Tinubu pledged to increase Nigeria’s crude oil production from under 1.5 million barrels per day to over 2 million bpd by 2025.
- However, some experts have dismissed this target as unrealistic.
- Petroleum Engineer and Oil & Gas Analyst Dr. Bala Zakka stated that while Nigeria has the capacity to increase production, achieving the 2025 target is unlikely due to ongoing crude oil theft in the Niger Delta and the continued exit of International Oil Companies (IOCs) from onshore exploration.
As of November 2024, Nigeria’s crude oil production experienced a slight decline in October 2024, dropping from 1.54 million barrels per day (bpd) to 1.53 million bpd.
