Oil & Gas

Why Nigeria’s upstream success depends on delivery

Published

4 weeks ago

February 5, 2026

By Ambrose Nnaji

Nigeria’s standing in Africa’s resurging upstream oil and gas sector took centre stage at the Upstream Leadership Dialogue, where industry leaders agreed that collaboration, execution certainty and investor confidence now matter more than sheer resource size in capturing global upstream capital.

Speaking under the theme “Capitalising Africa’s Global Upstream Momentum,” executives from international oil companies (IOCs), indigenous producers and the national oil company described an industry at a turning point—defined less by ownership labels and more by performance, partnership and pragmatic execution.

Panelists noted that Nigeria is no longer competing only with global basins, but increasingly with peer African producers for a shrinking pool of upstream capital, making competitiveness, reliability and delivery critical differentiators.

Managing Director of TotalEnergies E&P Nigeria, Matthieu Bouyer, said the company’s strategy focuses on disciplined portfolio development across onshore gas and offshore oil assets. He highlighted concrete progress on emissions reduction, including the end of routine flaring, deployment of real-time methane detection systems and the development of a 5MW solar project on OML 58.

“These initiatives are not optional add-ons,” Bouyer said, “but essential to keeping Nigerian assets competitive within global portfolios.”

Countering narratives of wholesale IOC exit, Jim Swartz, Chairman and Managing Director of Chevron Nigeria, said the company has retained its onshore, shallow-water and deep-water assets, with a focus on reliability, infill drilling and new discoveries.

Swartz stressed that upstream investments are inherently long-term and depend on contract sanctity, regulatory consistency and security. Chevron’s approach, he explained, spans near-term production optimization, development of discovered resources, gas infrastructure expansion and sustained exploration.

He warned, however, that gas infrastructure remains a binding constraint, noting Nigeria’s heavy reliance on a single aging pipeline system, which limits full monetisation of gas for power generation, fertiliser production and regional exports.

From the indigenous operator perspective, attention shifted to credibility and capital discipline. Chief Executive Officer of Seplat Energy Plc, Roger Brown, said investor confidence is ultimately anchored on consistency—of policy, messaging and performance.

Brown cited Seplat’s recent Eurobond issuance as evidence that global capital is responding to Nigeria’s reform signals, but cautioned that oil and gas capital is increasingly selective worldwide and even scarcer in Africa.

“One default can wipe out the credibility built by ten good borrowers,” he warned, urging indigenous operators to act as exemplary borrowers and strengthen coordination through industry platforms.

For ExxonMobil, Chairman and Managing Director of its Nigerian affiliates, Jagir Baxi, said competitiveness starts internally. Divestments from shallow-water assets, he explained, were aimed at improving Nigeria’s ranking within ExxonMobil’s global portfolio.

Baxi said recent government reforms have laid a strong foundation, but operators must now convert policy momentum into bankable, project-specific outcomes. He pointed to the planned redevelopment of the Erha facility as a potential catalyst for unlocking new capital.

Perhaps the most grounded intervention came from Engr. Tony Attah, Managing Director and CEO of Renaissance Africa Energy, who reframed host community engagement as a core business imperative rather than a compliance obligation.

Attah said indigenous operators possess a comparative advantage in understanding the Niger Delta’s social dynamics, noting that the Petroleum Industry Act (PIA) Host Community Development Trusts (HCDTs) have reshaped relationships around interdependence and shared value.

He disclosed that about ₦90 billion and $80 million have already been deployed through HCDTs within Renaissance’s footprint, transferring decision-making power directly to host communities.

“The government’s licence to operate is no longer enough. What matters now is the social licence—the freedom to operate” Attah said.

On local content, Managing Director of ND Western, Lanre Kalejaiye, said capacity development must be performance-led. While Nigeria has built strong capabilities in areas such as civil works, he noted that highly technical services, including directional drilling, still require international expertise.

The optimal path, Kalejaiye argued, lies in blending global know-how with deliberate localisation strategies that protect cost, quality and execution timelines.

Managing Director of Oando Energy Resources, Ainojie ‘Alex’ Irune, challenged the industry to align production ambitions with realistic financing strategies. While Nigeria targets output of 2–3 million barrels per day, he said the scale of capital required is often underestimated.

Irune called for innovative financing approaches, including deeper government-to-government engagement, patient capital from global partners and closer collaboration among operators, regulators and NNPC Ltd. He added that indigenous operators are increasingly technically capable and aligned with global energy transition expectations.

Executive Vice President, Upstream, NNPC Ltd, Udobong Ntia, said Nigeria’s competitiveness ultimately depends on execution certainty and fiscal clarity. “Capital flows more easily when investors are pricing geological risk, not political risk,” he said.

He outlined NNPC’s four strategic priorities: execution excellence, profitable growth, being a partner of choice and enterprise-wide cost discipline. Ntia disclosed that NNPC now holds regular upstream leadership meetings with operators and contractors to dismantle legacy silos and accelerate decision-making.

“The moment is now. The stars are aligned. But attracting capital is not enough—we must deploy it wisely and deliver value for investors, government and the Nigerian people”, he said.

Across the dialogue, a clear consensus emerged: Nigeria’s upstream future will not be shaped by IOCs or indigenous operators alone, but by collaboration, consistency and courage. As Africa’s upstream momentum gathers pace, Nigeria’s competitiveness will depend less on the size of its resources and more on how effectively its leaders convert opportunity into sustained growth.

Oil & Gas

NEITI backs Tinubu’s executive order mandating direct remittance of oil revenues

Published

2 days ago

March 2, 2026

NewsNexis Africa

By Ambrose Nnaji

The Nigeria Extractive Industries Transparency Initiative (NEITI) has applauded President Bola Ahmed Tinubu for issuing Executive Order 9, directing that all revenues accruing to the Federal Government from tax oil, profit oil, profit gas, royalty oil, and other government entitlements under production sharing, profit-sharing and risk service contracts be remitted directly into the Federation Account.

The Executive Order, signed on February 13, 2026, is designed to safeguard oil and gas earnings, curb leakages and eliminate wasteful expenditure by ensuring that all operators transfer statutory revenues straight to the constitutionally recognised Federation Account.

In a statement, NEITI’s Executive Secretary, Musa Sarkin Adar, described the directive as “a bold and strategic milestone” in Nigeria’s ongoing fiscal reform agenda aimed at strengthening transparency, accountability and revenue mobilisation.

According to him, the presidential order aligns squarely with Section 162 of the Constitution, which mandates that all revenues collected by the government be paid into the Federation Account for equitable distribution among the federating units.

“For over two decades of our oversight work, NEITI has consistently recommended the full remittance of all revenues due to the Federation Account in line with constitutional provisions,” Sarkin Adar stated. “This directive reflects the realisation of that long-standing reform objective.”

He recalled that NEITI’s 2017 special report titled Unremitted Funds, Economic Recovery and Oil Sector Reform uncovered over $20 billion in revenues owed to the Federation but yet to be remitted at the time — a development that significantly strained government finances and triggered high-level engagements between the executive, legislature and oversight bodies.

The NEITI boss said the new order marks a critical step in addressing systemic revenue gaps and consolidating reforms introduced under the Petroleum Industry Act (PIA), which remains the principal legislation governing Nigeria’s oil and gas sector.

While affirming NEITI’s longstanding advocacy that contributed to the enactment of the PIA, Sarkin Adar urged the National Assembly and relevant stakeholders to expedite amendments to align certain provisions of the law with emerging fiscal reforms and current operational realities.

“The core objectives of transparency, efficiency and accountability that shaped NEITI’s advocacy for the PIA are being advanced through this directive,” he noted.

He reiterated the agency’s commitment to collaborate with anti-corruption institutions, development partners and other stakeholders to deepen reforms and ensure the transparent, accountable and efficient management of Nigeria’s extractive resources for the benefit of all federating units and citizens.

Analysts say the Executive Order, if effectively implemented, could significantly boost government revenues, reduce opacity in oil remittances and improve fiscal stability at a time when Nigeria is intensifying efforts to strengthen its public finance framework.

Oil & Gas

Oil industry regulator expands local content drive into healthcare

Published

2 days ago

March 2, 2026

NewsNexis Africa

By Ambrose Nnaji

The Nigerian Content Development and Monitoring Board (NCDMB) has commissioned a state-of-the-art Clinical Skills and Simulation Laboratory at Bayelsa Medical University (BMU), Yenagoa, in a landmark intervention aimed at strengthening local capacity and aligning medical training in Nigeria with global standards.

Fully funded and equipped by the Board, the hi-tech facility features high-fidelity adult and paediatric patient simulators, laparoscopic training systems, and obstetric trainers, advanced life support mannequins, consultation cubicles, and integrated audio-visual learning systems. University authorities said the equipment will enable students to acquire hands-on clinical experience in a zero-risk environment — allowing them to learn, make mistakes, and perfect life-saving skills before attending to real patients.

Speaking during the commissioning at the university’s Clinical Skills Acquisition Centre, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, underscored the broader philosophy driving the intervention.

“Capacity building is not just about oil and gas; it is about ecosystems,” he said, noting that industries such as healthcare, education, engineering and logistics are intrinsically linked to the oil and gas value chain.

Represented by the Acting Director, Planning, Research and Statistics, Ene Ette, Ogbe described simulation-based learning as the global benchmark in modern medical education. According to him, it enhances clinical competence, sharpens decision-making, and builds professional confidence in a controlled and safe environment.

He commended the management of BMU and partner organisations for what he termed a strategic collaboration that translates policy into measurable developmental impact, describing the upgraded laboratory as a deliberate investment in human capital development.

The Vice Chancellor, Professor Dimie Ogoina, in his welcome address, described the event as more than the unveiling of a building or medical equipment.

“This is about securing the future of healthcare in Bayelsa State, the Niger Delta and Nigeria at large,” he said.

Ogoina expressed deep appreciation to the NCDMB, recalling that upon assuming office in 2025, he unveiled the A.S.P.I.R.E. Agenda — a strategic vision to transform BMU into a globally recognised leader in medical education, research and innovation powered by technology and excellence.

“Today, we are seeing that vision come alive,” he said, noting that the facility would directly contribute to reducing medical errors, improving patient safety and producing highly skilled indigenous healthcare professionals capable of serving both communities and industries.

“We are not just training doctors for today; we are nurturing digital-age physicians ready to compete globally,” he emphasised.

The Vice Chancellor also acknowledged the support of Bayelsa State Governor, Douye Diri, as well as the Commissioners for Health and Education, for creating an enabling environment for strategic partnerships.

The Provost of the College of Medicine, Professor Philip Eyimina, said the laboratory played a pivotal role in the university’s recent accreditation verification exercise, affirming its readiness to deliver quality medical education in line with national standards.

“In this laboratory, our students will master essential competencies — from history taking and physical examination to suturing, intravenous access, cardiopulmonary resuscitation, obstetric procedures and emergency response — while developing critical thinking, teamwork and communication skills,” he stated.

Representing Governor Diri, the Commissioner for Education, Gentle Emelah, described the facility as remarkable and aligned with the university’s ambition to become a leading institution in medical education globally.

The Pro-Chancellor, Tarilah Tebepah, thanked the NCDMB for its foresight and generosity, urging the Board to sustain its partnership with the institution as it continues to address resource constraints.

The ceremony was complemented with a guided tour of the facility, including its Virtual Reality Station, Paediatric and Airway Management Stations, ECG and Patient Monitoring Station, IV Fluids Administration and Cannulation Station, and a fully equipped Demonstration Hall — underscoring a new chapter in technology-driven medical training in the Niger Delta.

Oil & Gas

Nigeria key to TotalEnergies’ global push for more energy, fewer emissions

Published

2 weeks ago

February 18, 2026

NewsNexis Africa

By Ambrose Nnaji

The Managing Director of TotalEnergies Exploration and Production Nigeria Limited, Mathieu Bouyer, has reaffirmed the company’s commitment to expanding Nigeria’s energy supply while steadily lowering the carbon intensity of its operations.

Bouyer spoke during a panel session titled “Capitalising on Africa’s Global Upstream Momentum” at the Nigeria International Energy Summit (NIES) 2026 in Abuja, where industry leaders examined evolving investment trends and emerging opportunities across Africa’s oil and gas sector.

He said TotalEnergies’ strategy in Nigeria is anchored on two core pillars: growing oil and gas production and expanding electricity generation through integrated power solutions—aligned with the company’s global ambition of delivering more energy with fewer emissions.

“Our strategy is about growing energy as a whole,” Bouyer said, stressing that Nigeria remains a strategic market within TotalEnergies’ global portfolio, even as countries across Africa compete for upstream investment capital.

According to him, the company’s immediate focus is on maximising value from existing assets, spanning onshore gas and offshore oil and gas developments. He cited the recently sanctioned Ubeta Gas Project, expected to deliver up to 300 million cubic feet of gas per day, alongside several additional projects currently under evaluation.

On sustainability, Bouyer disclosed that TotalEnergies has eliminated routine gas flaring across all its Nigerian operations since 2023, marking a major milestone in its emissions-reduction drive. He added that the company has deployed advanced methane-detection technologies, including its proprietary AUSEA system, designed for real-time emissions monitoring and rapid intervention.

In addition, he said TotalEnergies EP Nigeria has installed over 2,500 Permanent Emission Monitoring Systems (PEMS) across its production sites nationwide.

Bouyer also announced plans to commission a five-megawatt solar power plant at OML 58 to supply electricity to the Ubeta Gas Project, describing it as one of the world’s first near-net-zero gas developments.

He underscored the importance of partnerships with indigenous companies, describing collaboration with local operators as critical to accelerating project execution and unlocking broader economic value.

Bouyer cited long-standing joint ventures with AMNI, Conoil, and Sapetro, pointing to flagship assets such as Egina FPSO and Akpo Condensate as examples of successful collaboration between international and indigenous operators. He also disclosed ongoing deep-offshore appraisal work with Conoil and planned exploration drilling with Sapetro.

“When we work with local partners, it enables us to move faster and create value—not just for ourselves, but for the country,” he said.

Bouyer and members of his management team also engaged with students at the summit, reinforcing TotalEnergies’ focus on knowledge transfer, skills development, and nurturing the next generation of energy professionals.