Oil Sector Surges as Stakeholders Drive Reforms and Boost Production at NOG2025

A New Era for Nigeria’s Oil and Gas Industry

Nigeria’s oil and gas sector has shown a renewed sense of energy, confidence, and reform-driven momentum during the 24th edition of the NOG Energy Week in Abuja. This event brought together a wide range of stakeholders, both local and global, to discuss ambitious plans, review progress, and align around a shared vision of energy security, increased production, and environmental sustainability.

The theme of the event, “Collaborative Leadership: Charting the Path to Energy Security,” highlighted the need for unity among government officials, regulators, international oil companies, indigenous operators, technology providers, and investors. The goal is to reposition Nigeria as Africa’s leading energy powerhouse in a rapidly evolving global landscape.

Government Directives to Revive Production

One of the most significant directives from the Energy Week was issued by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri. He instructed international oil companies and other upstream operators to immediately resume operations on all dormant oil wells.

“The time for dormant wells is over,” Lokpobiri declared. He pointed out that some companies had shut down over 500 wells due to delayed divestments and emphasized the need to reverse this trend. President Bola Ahmed Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to review all existing Financial and Technical Services Agreements (FTSAs), urging international oil companies (IOCs) to do the same.

Lokpobiri also challenged the NNPCL’s 2027 target of achieving 2 million barrels per day, stating that the President’s expectations are clear on production. The focus remains on meeting the 2025 budget target of 2.06 million barrels per day.

Investor Confidence and Production Growth

Lokpobiri highlighted the successful approval of IOC divestments as a key factor in boosting investor confidence. He noted that after the divestment process was streamlined, investments increased significantly, resulting in a rise in production by over 300,000 barrels per day.

Currently, Nigeria has over 40 active rigs, with an aim to reach 50 by the end of the year. This represents a sharp increase from the 11 active rigs recorded prior to 2023.

Zero Tolerance for Non-Compliance in Gas Flaring

The Federal Government has taken a firm stance on gas flare commercialisation. Engr. Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), reiterated the country’s commitment to the Nigerian Gas Flare Commercialisation Programme (NGFCP). He warned that any producer undermining the national climate-action programme would face strict consequences.

Komolafe emphasized that Nigeria’s upstream strategy now focuses on gas monetisation, emissions reduction, and a Decade of Gas roadmap supported by the Upstream Decarbonisation Framework.

Chevron Advocates for a Pragmatic Energy Future

Jim Swartz, Chairman and Managing Director of Chevron Nigeria, called for a balanced and pragmatic approach to energy that aligns economic prosperity with environmental goals. He outlined Chevron’s strategic moves, including deepwater lease renewals, seismic acquisitions, and fast-tracked production from new discoveries. These efforts reflect Chevron’s long-term commitment to Nigeria’s energy future.

NLNG Urges Measurable Performance

Dr. Philip Mshelbila, Managing Director of the Niger Delta LNG (NLNG), urged stakeholders to move beyond empty discussions and focus on delivering measurable performance. He praised recent reforms that have improved gas supply and transport capacity and called for more investment in domestic gas infrastructure, including Floating LNG.

Renaissance Africa Energy Makes Bold Entry

Renaissance Africa Energy Company Limited, Nigeria’s newest upstream operator, made a strong debut at the event. Dr. Layi Fatona, Chairman of Renaissance, revealed that the company increased production from 140,000 to 240,000 barrels per day within just 104 days of operations. For the first time in nearly five years, Renaissance delivered 1.9 million cubic feet of gas to NLNG.

Fatona stressed the company’s commitment to high environmental and safety standards and pledged full alignment with the government’s production drive.

Concerns Over Domestic Refining Capacity

Momoh Oyarekhua, Chairman of the Crude Oil Refinery Owners Association of Nigeria (CORAN), raised concerns about the lack of support for domestic refining. He questioned whether Nigeria could survive without importing fuel in the event of another crisis like the COVID-19 pandemic.

Oyarekhua called for the full implementation of the Petroleum Industry Act’s Domestic Crude Obligation and urged investment support for modular refiners.

Innovation and Data as Key Drivers

Dr. Daere Akobo, GCEO of Pana Group, emphasized the importance of better data governance and innovation in driving growth. He urged ministers to stop frustrating the president’s reform efforts and called for the creation of platforms that reduce costs, increase transparency, and convert invention into innovation.

Akobo noted that Nigeria is known for trending political topics, not disruptive innovation, and stressed the need for change.

Conclusion

NOG 2025 marked a fundamental shift in tone, leadership, and ambition in Nigeria’s oil and gas industry. As the country seeks to unlock more investment, close infrastructure gaps, and fulfill climate pledges, it must translate rhetoric into action. For now, the roadmap has been laid, and expectations are higher than ever.