The Nigerian National Petroleum Company Limited (NNPC Ltd) has underscored the necessity for enhanced collaboration among upstream operators, particularly independent producers, to address the challenges impeding the efficient development of divested assets within the nation’s oil and gas industry.
In a statement issued by the Chief Corporate Communications Officer of NNPC Ltd. based in Abuja, Mr. Olufemi O. Soneye, the company’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, emphasized this imperative during a panel session held on Wednesday at the ongoing 2024 Nigerian International Energy Summit (NIES 2024) in Abuja.
Addressing the theme, “Innovation, Collaboration, and Resilience: Empowering Independent Producers in the Dynamic Energy Era”, Eyesan highlighted past experiences with divestments, noting that the operational history of these assets had fallen short of expectations, with many witnessing a decline in production rather than growth.
“In evaluating prior investment initiatives and assessing performance based on fundamental metrics such as production growth, reserves growth, and asset integrity, it becomes evident that not all actors have met expectations,” lamented the EVP. “While acquisitions were made, our current production levels suggest a regression rather than advancement.”
Despite acknowledging pockets of success among independent producers, Eyesan identified significant challenges including insecurity, financial constraints, and technological limitations. She stressed the potential for overcoming these obstacles through collaborative efforts within the industry.
“The importance of collaboration cannot be overstated. We must recognize the urgency of our situation. Rather than merely discussing challenges, we must establish a proactive approach, akin to a war room, where concrete plans are devised collectively to address these issues,” she emphasized. “We require relentless collaboration to navigate through these challenges.”
The panel session convened prominent figures within the sector, including Mr. Adegbite Falade, Chief Executive Officer of Aradel Holdings; Mrs. Elohor Aiboni, Managing Director of SNEPCo; Mr. Demola Adeyemi-Bero, Managing Director of First E & P Development Company; and Mr. Matthieu Bouyer, Chief Executive Officer of TotalEnergies.
Also present were Mr. Shane Harris, Chief Executive Officer of ExxonMobil Nigeria; Dr. Ainojie Alex Irune, Chief Operating Officer of Oando Energy Resources; and Mr. Cosmas Iwueze, Director of Joint Venture at Chevron Nigeria.
