Nigeria's Upstream Sector Held Back by Poor Asset Stewardship

Nigeria's upstream sector is being held back by poor asset stewardship and the misallocation of opportunities, according to industry leaders. They are urging the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to make proven technical capacity the primary criterion for awarding oil and gas blocks and fields.

PETAN chair Mr. Wole Ogunsanya made this call at the Nigeria Energy Leaders Summit 2026, saying that many assets with huge potential were awarded to companies without the needed expertise, funding or equipment to operate them.

Ogunsanya argued that Nigerian professionals are sought globally and that the industry must match the Petroleum Industry Act (PIA) and regulations with that expertise. He pointed out cases where NNPC as joint venture partner intervened to set up asset management teams with its upstream arm, NEPL, lifting production from about 20,000 barrels to 50,000 barrels per day.

To grow production, Ogunsanya said equipment capacity is critical and that more rigs are needed in the swamp. He also flagged funding as a major constraint for new indigenous giants that acquired international oil companies (IOCs) divested assets.