SPE Identifies Gaps That Could Hinder Nigeria’s Targeted Oil Production

The Society of Petroleum Engineers (SPE) Nigeria Council has highlighted key areas of concern that would be addressed by Nigerian authorities to keep oil production flowing and reduce risk of future hiccups.

The Society said the country must accelerate investment in technology, infrastructure and production capacity to achieve its target of producing three million barrels per day (bpd) by 2030.

It warned that achieving the target requires more than the recovery of shut-in production, stressing the need for new field developments, subsea tiebacks, improved operational efficiency and stronger access to capital.

Chairman of SPE Nigeria Council, Francis Nwaochei, stated this in Lagos during a pre-event press briefing ahead of the 49th Nigeria Annual International Conference and Exhibition (NAICE 2026) scheduled for August 3 to 5 in Lagos.

With the theme: “Thriving in the Evolving Global Energy Landscape: Collaborative Growth and Resilience,” Nwaochei said the conference would focus on converting Nigeria’s energy ambitions into practical technical solutions amid changing global investment patterns, geopolitical shifts and energy transition pressures.

He said Nigeria’s energy future depends on collaboration among regulators, operators, service companies, technology providers and financial institutions to reduce operating costs, unlock investment and strengthen energy security.

The Council also urged the federal government and the new oil and gas block awardees to translate the 37 assets into economic opportunities for the country

The group called on the new license owners to leverage technology and smart funds while aligning with regulators, operators, service providers, technology developers, and financial institutions to drive down unit operating costs, de-risk investments, and unlock capital.

Nwaochei commended the federal government, the Ministry of Petroleum Resources, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for conducting the bid round in an automated and market-driven process under the Petroleum Industry Act (PIA).

He noted the conference was coming at a transformative juncture for Nigeria’s energy architecture with the recent conclusion of the 2025 Licensing Round where 37 oil and gas blocks across mature and frontier basins were awarded to 31 preferred bidders by the NUPRC.

“SPE Nigeria Council commends the Federal Government, the Ministry of Petroleum Resources, and the NUPRC for conducting an automated, market-driven process under the Petroleum Industry Act (PIA), by awarding 37 oil and gas blocks across mature and frontier basins to 31 preferred bidders,” he said.

He added that NAICE 2026 will serve as the first major industry platform where the operational and commercial execution of these newly awarded assets will be decoded.

According to him, awarding blocks is only the catalyst; converting exploration licenses into daily producing volumes requires rapid technology deployment, reservoir precision, and disciplined capital mobilization.

Nwaochei, however, stressed that awarding oil blocks was only the beginning, noting that converting exploration licences into actual production would require technology deployment, reservoir management expertise and disciplined capital investment.

“Awarding blocks is only the catalyst; converting exploration licences into daily producing volumes requires rapid technology deployment, reservoir precision, and disciplined capital mobilisation,” he said.

The SPE chairman also highlighted the changing ownership structure of Nigeria’s upstream sector, noting that indigenous operators are increasingly taking control of assets divested by International Oil Companies (IOCs).

He said indigenous companies now account for about 60 per cent of national oil production, placing greater responsibility on local operators to demonstrate technical competence, financial strength and the ability to manage operational and environmental obligations.

“Indigenous companies must demonstrate both operational excellence and financial bankability as they assume asset stewardship, manage decommissioning liabilities, and drive field optimisation,” he said.

On the downstream sector, Nwaochei said the emergence of large-scale private refineries and modular facilities was positioning Nigeria as a potential regional refining hub.

He, however, stressed the need for balance between domestic crude supply obligations under the PIA and maintaining commercially sustainable relationships with upstream producers.