morganable business/economy
Nigeria has set an ambitious target of producing three million barrels of crude oil per day by 2030, a goal Ogunsanya described as achievable if structural challenges within the industry are addressed.
KaNo—
The Petroleum Technology Association of Nigeria has called on the Federal Government and industry regulators to withdraw oil assets from operators that lack the technical and financial capacity to develop them.
The association warned that underperforming fields are holding back Nigeria’s ambition to raise crude oil production to three million barrels per day by 2030.
The President of PETAN, Wole Ogunsanya, made the call at the Energy Leaders Summit organised by The Energy Year in Lagos, where stakeholders examined opportunities and challenges shaping the country’s oil and gas sector.
Ogunsanya said several oil blocks with significant production potential had been allocated to companies that were ill-equipped to maximise them, resulting in declining output and missed opportunities for growth.
According to him, Nigeria currently produces between 1.7 million and 1.8 million barrels per day, far below its potential, despite possessing assets capable of delivering significantly higher volumes.
He noted that some operators acquired oil fields without the technical expertise or financial strength required to sustain production, leading to stagnation and, in some cases, decline in output.
“We have a bunch of assets awarded to companies that do not have the expertise to handle those assets,” he said.
“People raise money, but they don’t have what it takes to do the job. That is why we are behind in production, even where we have assets that should be producing two or three times what they are currently producing.”he added.
He added that in several instances, assets that were producing at higher levels prior to acquisition had recorded lower output under new operators, further underscoring the capacity gap in the sector.
Ogunsanya urged regulators and the Nigerian National Petroleum Company Limited to take decisive action by reallocating underperforming assets to capable operators.
He said ongoing policy reforms within the sector should prioritise efficiency and productivity, noting that operators who fail to develop assets should not be allowed to retain them indefinitely.
“If the regulators are serious about increasing production, then assets must be handed over to those with the capacity to develop them,” he said.
“We recently concluded a bid round, and another is coming. If we truly want to grow production, then we must ensure that only capable operators are awarded these assets.”he added.
Nigeria has set an ambitious target of producing three million barrels of crude oil per day by 2030, a goal Ogunsanya described as achievable if structural challenges within the industry are addressed.
He pointed to increased activity in deepwater projects, as well as developments in onshore and swamp locations, as indicators of potential growth.
“There is a lot of final investment decision activity in the deepwater, and a number of fields are being developed on land and in swamp areas,” he said.
Ogunsanya also highlighted the role of shallow-water assets in boosting production, citing recent acquisitions by indigenous companies as positive developments.
He noted that Seplat Energy, which acquired ExxonMobil’s Nigerian shallow-water assets, has access to international financing through its London listing and is well positioned to increase output from the fields.
“That asset was producing over 300,000 barrels per day at some point under ExxonMobil,” he said.
“With the right investment and technical expertise, production can be scaled up again.”he added.
He also referenced Renaissance Africa Energy, which acquired Shell’s onshore and shallow-water assets, as another example of an operator actively working to expand production.
According to him, Renaissance is ramping up drilling operations and seeking partnerships to accelerate development across its fields.
“They are increasing their rig count from about eight or nine to around 23 rigs,” he stated.
Despite these positive signals, Ogunsanya identified funding as a major constraint affecting operators, stressing the need for government policies that can attract both local and foreign investment.
He said investor confidence remains critical to unlocking the capital required for large-scale oil and gas projects, urging authorities to strengthen Nigeria’s credibility in the global energy market.
“Operators are willing to invest, but we need to build confidence and ensure stability in policies.”he stated
On gas development, Ogunsanya called for increased investment in pipeline infrastructure and the expansion of non-associated gas projects, noting that gas remains a key component of Nigeria’s energy transition strategy.
He also pointed to the country’s growing refining capacity, describing it as a positive development that could reduce dependence on imported petroleum products while enhancing value addition within the economy.
According to him, the Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, alongside planned expansion by BUA and the emergence of modular refineries, could significantly transform Nigeria’s downstream sector.
Meanwhile, the Technical Director at Navante Oil and Gas, Emeka Onwuechi, emphasised the need for stronger collaboration between operators and indigenous oilfield service companies to deepen local capacity.
He said Nigeria still depends heavily on foreign service providers for critical equipment and technical expertise, a situation he described as unsustainable.
Onwuechi cited the lack of in-country capacity to manufacture key oilfield equipment such as Christmas trees, noting that operators are often forced to rely on facilities in other countries.
“Currently, we do not have the capacity to produce some of these critical components locally,” he said.
“We still depend on service centres outside Nigeria, including places like Angola.”he added.
He called on international oil companies to establish more service facilities within Nigeria, arguing that such investments would not only support ongoing projects but also create jobs and build long-term technical capacity.
Also speaking at the event, a Partner at Dentons ACAS-Law, Josephine Udonsak, stressed the importance of proper project preparation and early stakeholder engagement in energy developments.
She said many projects encounter challenges because developers fail to involve regulators and advisers at the early stages, leading to structural and financial complications later.
“The foundation of any successful project is proper preparation,” she said. “This includes stakeholder engagement and a clear understanding of regulatory and financing requirements.”
Udonsak added that project partners must have a realistic assessment of the risks they can assume, noting that contracts and financing structures should reflect those realities.
“Both parties must understand the risks they are best positioned to take, and agreements must be structured accordingly,” she said.
In her remarks, the Country Director of The Energy Year, Anesa Mesnikovič, said the summit was part of efforts to highlight key developments in Nigeria’s energy sector.
She noted that the launch of the Energy Year Nigeria 2026 edition captures the perspectives, milestones and opportunities shaping the country’s energy future.
Industry stakeholders at the event agreed that while Nigeria has significant potential to expand oil and gas production, achieving this goal will require decisive reforms, improved investment climate and a stronger focus on capacity development.
They warned that without addressing these challenges, the country may struggle to meet its production targets despite abundant resources.
