NNPCL Executive Calls for Third-Party Operators to Revive Idle Oil Assets Amid Nigeria’s Struggle to Boost Crude Production
Nigeria oil and gas sector Stagnation by stagnationWith the production of crude oil which still has difficulties around 1.5 million barrels per day (BPD) despite repeated government insurance. Now, Udobong Ntia, executive vice-president upstream of the Nigerian National Petroleum Company Limited (NNPCL), pleaded for the adoption of Third -party operators to unlock blocked oil assets and stimulate production.
Speaking at Heirs Energies Leadership Forum 2025 – Speech in industry leadership, NTIa stressed that Nigeria’s inability to increase production is due in part to the hoard of assets not developed by owners of blocks of blocks of blocks of oil which lacks both capital and technical expertise to lead them to lead them to lead them to bring them to bring them to Bringing to get them to get them to get them to get them to get them to get them to get them to get them to get them to get them to get them to get them to get them to get them to bring them to bring them to bring them to bring them to bring them to Bringing them to get them to get them to get them to get them to get them to get them to get them to get them to get them to bring them to bring them to bring them bring them to production. Instead of leaving these fields in sleep, he suggested a model where investors and third -party operators could be brought in an arrangement that allows bays of the main bays to maintain surveillance while abandoning a certain control.
“There is no point in keeping an asset if you don’t have the capital, is not ready to produce and keep it,” said Ntia. “What if we brought third -party operators?” You can always be the operator, maintain surveillance and abandon a little control to see these assets come to life with production. »»
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His remarks come at a critical time for the Nigeria oil industry, which has experienced a constant drop in production due to theft, diversion by oil multinationals, aging infrastructure and security challenges. However, beyond these well-documented problems, experts affirm that industry is also deeply compromised by corruption, nepotism and political interference in the allocation of oil blocks, which is more production.
Structural challenges in the Nigeria oil and gas sector
During the leadership forum, the NTIa identified three key challenges hindering the growth of the sector:
- Contracting feedback: Bureaucratic strangulation bottlenecks and long -term procure processes delay projects, resulting in an increase in costs and ineffectures.
- Aging infrastructure: many oil production facilities have survived their Operational efficiency, resulting in frequent yields and disturbances.
- Regarding security problems: generalized oil theft, vandalism and illegal relief in the Niger Delta continue to undermine production efforts.
While recognizing these problems, the NTIa insisted that better collaboration between industry stakeholders – including international investors and local operators – could help Nigeria increase its gross production and achieve its objective of 2 million b / d by 2025.
However, many analysts remain skeptical about this objective, stressing that the real problem works a lot deeper than infrastructure or security.
Nepotism and corruption in oil block allowances: the barrier hidden for growth
Beyond the operational challenges described by NTIA, industry experts note that the Nigeria oil and gas sector is also paralyzed by systemic corruption, in particular in the way in which oil assets are allocated.
Energy expert Kelvin Emmanuel expressed the issue, describing the allocation process as a riddled of favoritism, political lobbying and nepotism rather than considerations based on merit.
“You will wear the block and give Babe because you do lobbying to keep your job – Family and Friends Inc.,” said Emmanuel, referring to the way political ties, rather than technical expertise, often determine who has access to lucrative petroleum assets.
He explained that this mismanagement has a direct impact on production of the Individuals or entities that receive oil blocks do not have financial force or technical know-how to order final investment decisions (FID) and develop the fields.
“Explain why production is not going anywhere, because the people to whom you have given it cannot show you a calendar for development and production on the field, because they have no pedigree or capital to order Fid, “added Emmanuel.
Its statements highlight a long -standing problem in the Nigeria oil sectorwhere the oil Assets are often distributed as political favors rather than the allowance depending on the capacity of an investor to extract and effectively produce crude oil. This practice stalls the growth of production, like these Block supports Sit on the assets, either return to lucrative purposes without developing them.
Emmanuel also underlined the disconnection between the oil wealth of Nigeria and the living conditions of its citizens, stressing that the country has all the natural resources necessary to create prosperityBut corruption At the top, the Nigerians have left perpetual economic difficulties.
“There is no miracle of a better life that the Nigerians pray that God has not already done-the problem is only terrible people in powerful roles,” he said .
Can Nigeria achieve its 2 MBPD lens? Experts doubt
The administration of President Bola Tinubu has repeatedly undertaken to increase the production of crude oil by less than 1.5 million b / d to more than 2 million b / d by 2025, but analysts of Industry are not convinced.
We think that the Nigeria has the ability of Reach 2 million BPDs, several key obstacles make the objective very unrealistic:
- Flight of raw crude oil: the Nigerian oil industry loses hundreds of thousands of barrels daily with illegal undercharge and vandalism. The Niger Delta region, where a large part of the country’s crude is produced, remains a home of militant activity and sabotage.
- Exit International oil companies (IOC): global energy giants such as Shell, Exxonmobil and Chevron have left the nigeria, sold fields and reducing investments due to regulatory uncertainty, insecurity and insecurity and insecurity and insecurity and operational risks.
- Regulatory curls and ineffectiveness: long delays in the approval of oil licenses, contracts and environmental permits discourage investments and growth in dropout production.
Although the call of NTIA to third -party collaboration and greater efficiency in the development of inactive oil assets offers a potential solution, experts say that if the deeper systemic problems – such as nepotism in allowances Oil blocks and lack of responsibility – are discussed, production will probably remain stagnated.
“Everyone will have to collaborate. Everyone should focus on what they do best, “said Ntia. “For areas where they lack capital or resources, leave those who can operate on an income basis costly on work.”
Although its suggestion can help improve efficiency, many experts argue that no collaboration will repair the sector if political interference and corruption continue to dictate the management of petroleum assets.
