The Petroleum Technology Association of Nigeria (PETAN) has said that for Nigeria to remain self-sufficient and globally competitive, it needs to develop a strategy to grow oil production sustainably.
The Association urged an urgent scale-up in crude oil output to match Nigeria’s growing refining capacity and boost export and domestic supply.
Mr. Wole Ogunsanya, PETAN chairman, made the call in an at the recently concluded Offshore Technology Conference (OTC) on Sunday, May 11, 2025, in Houston, USA.
The call is coming as the Federal Government announces a new, significantly higher, production target for the Nigerian National Petroleum Company Limited (NNPCL), aiming for 2.5 million barrels daily by the end of this year.
Minister of State For Petroleum Resources, Heineken Lokpobiri, noted this on the sidelines of the Oil Technology Conference Africa Energy Forum.
“When the new NNPC management visited me, I increased their oil production target to 2.5 million bpd from the initial two million barrels given to them by the President,”Lokpobiri believes the new target would be easy to hit based on the fact that Nigeria reached the same level of production during the pandemic despite the lack of any targeted investments in oil production growth.
“The 2.5 million bpd oil production is easily realisable because all the bottlenecks against our oil production are being addressed,” the official said.
Production data shows Nigeria has not produced oil at a rate of 2 million bpd in the past decade, with the peak at close to that figure back in 2016.
Since then, production has been in a more or less gradual decline. Pipeline vandalism and oil theft are two reasons for this, as they discourage additional investments that are much needed for a reversal in production trends. Another reason has been Big Oil strategy that has seen the supermajors curb their presence in Nigeria in favor of other locations with better prospects.
However, Exxon just made a decision to investors $1.5 billion in deepwater oil development in Nigeria. The investment will be made between 2025 and 2027 to revitalize production in the Usan deepwater oilfield, Nigeria’s Upstream Petroleum Regulatory Commission said this week.
According to Lokpobiri, the problems of pipeline vandalism and oil theft in the Niger Delta are also being addressed, which should facilitate production growth. This just leaves one problem: OPEC+ production control commitments. In this, Nigeria is in luck as Saudi Arabia recently reversed its course, switching from production control to growth.
Meanwhile, Ogunsanya said Nigeria currently produces around 1.8 million barrels per day (bpd), but must increase this to at least 2.5 to 3 million bpd.
He explained the country’s refineries need about 900,000 bpd comprising 650,000 bpd for Dangote, 200,000 bpd for NNPC, and 50,000 bpd for modular plants.
He noted the upcoming BUA Refinery will add another 350,000 bpd by next year, further tightening demand for domestic crude supply.
He stressed that meeting local demand without hurting exports is crucial for stable revenue generation in the oil-dependent economy.
Ogunsanya also highlighted key infrastructure challenges impeding output growth, including a shortage of rigs, equipment, and pipeline networks.
He said PETAN is addressing these issues by investing in domestic capacity to support increased production targets.
Ogunsanya welcomed the recent approval of three Final Investment Decisions (FIDs), calling them a game-changer for Nigerian oilfield service providers.
“These FIDs create opportunities for PETAN members and the wider Nigerian oil services industry,” he said.
He added they would also reduce idle equipment and generate jobs across the energy value chain.
Ogunsanya affirmed PETAN’s commitment to merit-based competition, saying: “We seek no favours – only a fair chance to prove our capabilities.”
Reflecting on Nigeria’s rising presence at OTC 2025, Ogunsanya expressed satisfaction with the country’s showing.
“This year saw a more unified and impactful Nigerian Pavilion, reflecting the Minister of Petroleum’s directive,” he said.
He added that Nigeria’s oil and gas sector is at a turning point, where output growth and collaboration are vital for long-term success.
The 2025 OTC hosted nine executive dialogues, 18 keynotes, 53 technical sessions, and more than 360 technical presentations.
The exhibition featured over 1,000 companies showcasing advanced technologies, from virtual reality tools to interactive offshore innovations.
The Nigerian Pavilion, coordinated by PETAN, delivered three technical sessions, attracted over 70 participants, and hosted around 40 exhibitors