NNPC Laments Delay in Tapping Oil Reserves

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC) Bayo Ojulari, has warned that Nigeria must urgently turn its oil reserves into production, saying crude in the ground holds no value until it is extracted.

Economic Confidential reports that about 220 open oil blocks have remained dormant over the years in different onshore and offshore basins across the country. But the Nigerian Upstream Petroleum Regulatory Commission said the oil blocks would be licensed in the coming bid rounds.

Speaking in Lagos on Thursday at the 50th anniversary of the Nigerian Association of Petroleum Explorationists, Ojulari, who was represented by the company’s Executive Vice-President, Upstream, Udobong Ntia, said Nigeria has had enough oil in the ground for many years, saying the time has come to bring it out.

“Our oil in the ground doesn’t matter to anybody. It has to convert to cash for the country to get the benefit that we need. We’ve had oil in the ground for so long, so long. It’s time to begin to get the deals that will get the oil out of the ground,” Ojulari said.

Ojulari noted that funding remains a major challenge for the oil sector, but this can be surmounted by creating an enabling environment for businesses to thrive. He stressed that attracting capital into the industry requires clear returns for investors, saying investors want assurances that their investments will return profits.

On the future of the industry, Ojulari said sustainability is key to boosting Nigeria’s energy future while protecting the environment. “How do we focus on climate change and driving fossil fuels? It’s not a zero-sum game. We can do both. We can talk and chew gum at the same time.

“Developed economies grew their economies with fossil fuels. How do we do it in our economies as well, but not harm the environment? How do we do it sustainably, reasonably, and with the right values in place? So, I want to leave all these thoughts with you as we think about the next 50 years. Sustainability is going to be a big piece. It’s already a big piece with all the changes and movements that we’re seeing,” he said.

He expressed satisfaction that investments are returning to the oil sector from global banks, saying such investments hit $800bn last year. Earlier in his address, the President of NAPE, Johnbosco Uche, shared the same sentiment, expressing concerns over Nigeria’s untapped oil and gas resources.

Uches said, “Nigeria sits on a wealth of untapped potential, especially in natural gas, now universally recognised as a key transition fuel.” According to him, Nigeria has over 600 trillion cubic feet of yet-to-be-discovered gas in its sedimentary basins, and this represents an enormous opportunity and strategic pathway to industrialisation, energy security, and cleaner growth.

“Gas exploration must become intentional, and this is the era to look deeper and smarter. We have unappraised, partially appraised, and near-field exploration oil growth opportunities that need to be evaluated, developed, and produced in a sustainable manner.

“I call on the government to work closely with us, providing the fiscal and regulatory incentives that will enable industry players to explore, discover, and produce this oil and gas efficiently.

“We must also return to the basics of exploration: quality data (through seismic acquisition), bold ideas, and collaborative innovation. We must go back to the unappraised discoveries, unlock stranded value, and increase our reserve replacement ratio. We would then need to adopt digital transformation, machine learning, and artificial intelligence and apply them to our rich database for impactful results. All these will drive our ambition of meeting the national 2030 production targets,” he said.

On human resources, he stated, “Our workforce is ageing, yet we still often go to market looking for ‘experienced hires’. But who will train them? Every experienced professional was once a young graduate. The time has come to systematise internships, sabbaticals, and mentorship programmes across the petroleum sector. We must invest in young professionals, equip them, mentor them, and create pathways for talent development. Human capital is our most precious reservoir, and it must be developed.”

The NAPE President called for the establishment of new Centres of Excellence for Petroleum Studies, one in the North and one in the South, to serve as hubs for training, research, and innovation.