Reported by Weng Patrick Atokor l Journalist at Weng Global
Nigeria’s Petroleum Technology Association of Nigeria (PETAN) has called on the Nigerian National Petroleum Company Limited (NNPCL) and petroleum regulators to reassign oil assets that are not being adequately developed to operators with the technical and financial capacity to maximise them.
PETAN President Wole Ogunsanya made the call at the Nigeria Energy Leaders Summit 2026 in Lagos, where industry stakeholders examined the challenges and opportunities facing Nigeria’s oil and gas sector.
The intervention comes as Nigeria seeks to raise crude oil production to about three million barrels per day by 2030, from the current production level of roughly 1.7 million to 1.8 million barrels per day cited by Ogunsanya.
PETAN questions the use of high-potential assets
Ogunsanya said some oil assets with significant production potential had been awarded to companies that did not have sufficient expertise or capacity to develop them.
He argued that the problem was contributing to lower-than-possible production, particularly where assets had previously produced significantly higher volumes.
PETAN is therefore urging regulators and NNPCL to ensure that operators unable to develop their assets are replaced or required to transfer them to companies capable of doing the necessary work.
The association’s position reflects a broader debate within Nigeria’s upstream petroleum industry over whether oil licences and assets are being matched with the technical, financial and operational capabilities required to develop them.
Industry stakeholders have also raised concerns about funding, drilling activity and the utilisation of existing oilfield capacity.
NUPRC is already tightening enforcement
PETAN’s call comes shortly after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced measures targeting non-performing petroleum licences.
In September, the regulator warned holders of certain licences awarded through the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round and the 2024 Licensing Round that they could face consequences if they failed to meet their approved work commitments.
The affected operators were given until October 31, 2026, to disclose their compliance status, explain obstacles affecting development and submit revised plans where necessary.
The action forms part of the enforcement of the “Drill-or-Drop” principle under Nigeria’s Petroleum Industry Act, which is designed to discourage operators from holding petroleum acreage without progressing development activities.
The NUPRC has separately said it is reviewing qualification criteria for future bidding exercises following challenges involving disputes and operators that lacked the financial or technical capacity to develop awarded assets.
This gives PETAN’s latest argument a wider regulatory context: the question of whether operators have the capacity to develop their assets is already receiving attention from the country’s upstream regulator.
Deepwater projects could add significant production
Despite concerns surrounding existing assets, PETAN also pointed to new developments that could substantially increase Nigeria’s future crude production.
Ogunsanya said several major deepwater projects are expected to begin drilling before the end of 2026 and could collectively contribute as much as 500,000 barrels per day over the next three to five years.
He cited expected activity involving major international oil companies, including ExxonMobil, TotalEnergies and Chevron.
The projected increase would provide an important contribution toward Nigeria’s 2030 production ambition if the projects proceed as outlined.
However, production growth will depend not only on new projects but also on the ability of existing operators to maintain and expand output from producing assets.
That is why PETAN’s argument centres on asset stewardship as well as new investment.
Funding remains a major constraint
Technical capacity is only one part of the challenge.
Ogunsanya also identified funding as a major obstacle facing operators, particularly indigenous companies that have acquired assets previously operated by international oil companies.
The transition of some petroleum assets to Nigerian-owned or Nigerian-led operators has created opportunities for greater domestic participation, but developing mature or technically demanding fields requires substantial capital.
PETAN has therefore called for an environment capable of attracting investment and financing into upstream projects.
The issue is significant because an oil asset can have considerable geological potential without immediately translating that potential into production. Operators require financing, drilling equipment, technical expertise, infrastructure and regulatory approvals to turn reserves into actual barrels.
Nigeria also needs more drilling activity
PETAN has previously argued that Nigeria already possesses considerable indigenous technical capacity across areas including drilling, fabrication and oilfield services, but that much of this capacity remains underutilised.
In July, Ogunsanya said inadequate project activity, a weak project pipeline and funding constraints were limiting the use of equipment and expertise already available within the country.
The association’s latest position therefore places greater emphasis on making existing assets productive while bringing new projects online.
For Nigeria, the distinction matters.
Increasing production does not necessarily require discovering an entirely new petroleum province. Some gains can come from improving the performance of existing fields, accelerating delayed projects and ensuring that operators have the resources required to execute approved development plans.
Local oilfield capacity remains another issue
The Energy Leaders Summit also highlighted challenges affecting Nigeria’s wider oilfield-services ecosystem.
Technical Director at Navante Oil and Gas, Emeka Onwuechi, said Nigeria continues to depend on foreign service centres and expatriate expertise for some specialised oilfield equipment and services.
He cited the lack of domestic manufacturing capacity for certain critical equipment as one of the challenges confronting the industry.
Greater local manufacturing and service capacity could potentially reduce dependence on external suppliers while creating opportunities for Nigerian companies and workers.
But developing that capacity also requires sustained demand from operators.
This creates a connection between production, investment and local content: without enough oil and gas projects, domestic service companies may struggle to utilise their equipment and workforce; without capable local services and infrastructure, operators may face higher costs or longer project timelines.
Why PETAN’s call matters
The debate over idle and underperforming assets is important because crude oil remains a major component of Nigeria’s energy economy and public finances.
Higher production could increase government and industry revenues, strengthen feedstock availability for domestic refineries and provide more activity for companies operating across the petroleum value chain.
However, production targets alone do not guarantee higher output.
Nigeria’s ability to reach its 2030 ambition will depend on whether announced projects move into actual drilling and production, whether existing assets are effectively managed, whether operators can access financing and whether regulatory processes encourage timely investment.
The country’s recent regulatory actions suggest that the government is also seeking greater accountability from licence holders.
What happens next?
The immediate focus will be on how NNPCL and petroleum regulators respond to the industry’s calls for stronger enforcement of asset-development obligations.
The NUPRC’s October 31 compliance deadline for affected licence holders is one of the concrete developments to watch. The regulator’s review of bidding criteria could also influence how future oil and gas assets are allocated.
At the same time, planned deepwater drilling and increased activity in land, swamp and shallow-water operations will determine how quickly additional production can come into the market.
For PETAN, the central argument is straightforward: Nigeria’s production ambition will require assets to be placed in the hands of operators that can actually develop them, while financing, infrastructure and technical capacity must support those projects.
The broader question for Nigeria’s petroleum sector is therefore not simply how many oil assets the country has, but how effectively those assets are being developed and converted into sustainable production.
Weng Global – Stories beyond borders
Sources
- Punch— Report on PETAN’s call for idle assets to be reassigned.
- The Cable— Report on NUPRC’s review of oil-block bidding criteria.
- Channel Television— Background on PETAN’s concerns about underutilised capacity and Nigeria’s production targets.
- The guidian Nigeria— Report on PETAN’s projected deepwater production increase.
- PETAN— Background on the Petroleum Technology Association of Nigeria.
