The divestment of International Oil Companies (IOCs) from Nigeria’s upstream sector has transferred ownership of several mature oil assets to indigenous operators, but industry players say unlocking the full potential of those fields will require fresh investments in drilling, facility renewal and evacuation infrastructure.

Speaking at a panel session on Production Optimisation Strategies-Maximising Investments in the New Energy Landscape at the 25th NOG Energy Week in Abuja, executives of indigenous oil firms said many of the assets acquired from IOCs still hold significant production potential but require aggressive work programmes to reverse decline and increase output.

The operators agreed that indigenous companies now play a critical role in sustaining Nigeria’s upstream growth following the sector’s changing ownership structure.

However, they stressed that increasing production from mature assets will depend on sustained capital deployment, infrastructure upgrades, technology adoption and the ability to rebuild technical capacity needed to manage complex upstream operations.

The Chief Executive Officer of Oando, Dr Alex Irune, said Nigeria’s production challenge is not a lack of technical potential, noting that the country is currently producing below what its assets can deliver.

He said the immediate priority is to “protect the base” by sustaining existing production before unlocking additional capacity.

“As a country today, if you just look at it from a technical basis, we’re producing about 70 per cent of our technical allowance. So, it tells you that we have admitted that in our fields, we want to produce and we’re not going to sell,” he said.

He said the priority should be to first protect existing production before seeking additional growth. According to him, recent reforms in the sector have improved the operating environment, but sustained investment and collaboration among industry stakeholders will determine whether Nigeria can achieve its production ambitions.

“If we are able to protect that base, we have a chance of keeping the decline,” Irune said.

The Chairman and Chief Executive Officer of Shoreline Group, Kola Karim, said unlocking production from acquired assets would require a combination of drilling campaigns, subsurface renewal and improved infrastructure.

Karim explained that many divested assets are ageing and require renewed investment to maximise their value.

“The reality is that our ability to unlock that 300,000 potential is in a very simple form. One, drilling through an efficient drilling campaign that we’re putting in place to try and optimise the production in the asset,” he said.