KEY POINTS
- The Presidency is exploring a revamp of asset ownership in NNPC Limited due to its low contribution of just 220,000 barrels per day.
- Officials call for private operators with technical capacity and financial depth to participate in greenfield projects to meet Nigeria’s 3 million barrels per day target.
- The government emphasises performance-based management under its “four Rs” framework: reserves, revenues, reliability, and responsibility.
The Nigerian Presidency is weighing significant changes to the ownership structure of the Nigerian National Petroleum Company Limited, NNPC, as concerns mount over the state firm’s limited contribution to national crude oil output.
The announcement was made by the Special Adviser to the President on Energy, Olu Verheijen, at the Nigerian Association of Petroleum Explorationists Conference in Lagos on Monday.
Verheijen said President Bola Tinubu is determined to revitalise the country’s oil and gas sector, noting that Nigeria’s target of three million barrels per day cannot be achieved without a shift toward performance-driven management and stronger accountability within NNPC.
Currently, NNPC Exploration and Production Limited produces only 220,000 barrels per day, representing less than ten per cent of Nigeria’s total daily output. Verheijen questioned whether the state-owned company can fund and execute the drilling campaigns necessary to meet the country’s growing energy demands.
Private sector participation seen as key to growth
The presidential aide stressed that structural reform may be needed, including the possibility of inviting private operators with technical capacity, financial depth, and robust governance to manage some oil assets. “Unlike during the era of international oil companies operating onshore, today’s joint venture partners can no longer carry NNPC,” she said. “We must ask the hard question: Can NNPC deliver the incremental growth we need on its own balance sheet? If not, we must have the courage to restructure asset ownership.”
Verheijen also highlighted the need for private operators such as Renaissance, Oando, Seplat, and Aiteo to move beyond small-scale workovers and infill drilling, advocating for bold greenfield developments reminiscent of the large projects previously undertaken by Shell and ExxonMobil.
She added that the government’s energy policy will be guided by the “four Rs” framework reserves, revenues, reliability, and responsibility, underscoring a commitment to performance-based stewardship rather than sentimental management of oil assets.
The call for restructuring reflects a broader effort to modernise Nigeria’s oil sector and ensure that production capacity aligns with national targets and global energy demands.
