PETAN CALLS FOR REASSIGNMENT OF UNDERPERFORMING OIL ASSETS

The Petroleum Technology Association of Nigeria has urged the Federal Government and industry regulators to reassign oil assets that are not being adequately developed to operators with the technical and financial capacity to maximise their potential.

PETAN President, Wole Ogunsanya, made the call at the Energy Leaders Summit organised by The Energy Year in Lagos.

Ogunsanya said some oil assets with significant production potential had been awarded to companies that lacked the expertise or resources required to develop them effectively.

He urged the Nigerian National Petroleum Company Limited and regulators to ensure that operators unable to meet production expectations relinquish such assets so they can be transferred to capable investors.

Nigeria is targeting crude oil production of about three million barrels per day by 2030, compared with current production of between 1.7 million and 1.8 million barrels per day, according to Ogunsanya.

He said increased activity in deepwater, land and swamp operations could support higher output, while developments by companies such as Seplat Energy and Renaissance Africa Energy could contribute additional production.

Ogunsanya also identified access to funding as a major challenge for operators, urging the government to create a more investment-friendly environment that would make it easier for companies to secure financing.

On gas, he called for greater investment in pipeline infrastructure and the development of non-associated gas fields.

A Technical Director at Navante Oil and Gas, Emeka Onwuechi, also called for greater collaboration between international oil companies and indigenous service providers to strengthen local capacity and reduce reliance on foreign facilities.