Nigeria Urged to Strategize for Higher Oil Output – PETAN

The Petroleum Technology Association of Nigeria (PETAN) has called on the federal government to urgently craft a strategic framework aimed at significantly increasing the country’s oil production levels.

This, according to the association, is essential for meeting growing domestic refining needs and strengthening Nigeria’s position in the global energy market.

Speaking at the recently concluded Offshore Technology Conference (OTC) in Houston, USA, PETAN Chairman, Mr. Wole Ogunsanya, emphasized the importance of aligning crude oil production with Nigeria’s expanding refining capacity. He cited the country’s current output of approximately 1.8 million barrels per day (bpd), noting the need to scale this up to between 2.5 and 3 million bpd.

This appeal comes amid new production goals set by the federal government. The Minister of State for Petroleum Resources, Heineken Lokpobiri, disclosed that the Nigerian National Petroleum Company Limited (NNPCL) has been assigned a new target of 2.5 million bpd—up from the previously set two million bpd.

Lokpobiri expressed confidence that the target is attainable, noting that similar production levels were achieved during the pandemic despite limited investment. He highlighted ongoing efforts to address issues such as pipeline vandalism and crude theft, which have historically hindered production growth.

Despite not reaching the 2 million bpd mark in nearly a decade, recent developments point to renewed momentum. These include ExxonMobil’s commitment to invest $1.5 billion in deepwater oil development between 2025 and 2027, particularly in the Usan oilfield. This investment is expected to help boost output and restore investor confidence.

Ogunsanya stressed the importance of increasing domestic supply to meet demand from major refineries, including the 650,000 bpd Dangote Refinery, 200,000 bpd from NNPC’s refineries, and 50,000 bpd from modular plants. With the BUA Refinery expected to add another 350,000 bpd in 2026, the strain on domestic crude availability is projected to intensify.

He also identified infrastructure deficiencies, including a lack of rigs and equipment, as barriers to increased production. PETAN, he said, is addressing these challenges by investing in local capacity and supporting industry stakeholders.

Highlighting the recent approval of three Final Investment Decisions (FIDs), Ogunsanya said these would open new opportunities for Nigerian service providers and create jobs across the oil and gas value chain.

He reaffirmed PETAN’s commitment to fair competition, stating: “We don’t seek special treatment, only the opportunity to prove our capabilities.” Ogunsanya also praised Nigeria’s coordinated participation at OTC 2025, which featured technical sessions, exhibitions, and dialogue on advancing the energy sector.

The 2025 OTC event brought together over 1,000 companies and included more than 360 technical presentations. Nigeria’s enhanced presence, coordinated by PETAN, showcased the country’s potential to scale up oil production and strengthen its position in the global energy arena.