PETAN Urges NNPC to Reassign Idle Assets to Boost Oil Production

Nigeria's goal to increase crude oil production to three million barrels per day by 2030 is ambitious, but achievable, according to the Petroleum Technology Association of Nigeria (PETAN). The association's president, Wole Ogunsanya, stated that some oil assets with significant production potential have been awarded to companies lacking the expertise and capacity to maximize them.

Ogunsanya called on regulators and the Nigerian National Petroleum Company Limited to reassign these idle assets to operators with the requisite technical and financial capacity. He emphasized that if existing operators cannot deliver, they should be replaced, and the assets handed over to capable parties.

Nigeria currently produces between 1.7 million and 1.8 million barrels per day, and PETAN believes that increasing production in deepwater projects is a major opportunity for growth. Ogunsanya highlighted the planned development of shallow-water assets by companies like Seplat Energy and Renaissance Africa Energy as another significant opportunity.

Funding remains a major challenge confronting operators seeking to increase production, and Ogunsanya urged the government to create an environment capable of attracting investment. He also stressed the importance of proper project preparation, stakeholder engagement, and early involvement of regulators and advisers in energy projects.