FG Ready to Collaborate with PETAN for Development of Nigeria’s Oil, Gas Sector -Find Oil and Gas Jobs

Dwindling Output and the Case for Collaboration

Nigeria’s oil production has been sliding, raising concern about revenue, government finances and the health of the wider petroleum value chain. Lokpobiri told PETAN that restoring output requires joint action between government and indigenous service companies. He affirmed that the federal government is putting measures in place to bring production back up and that the ministry needs PETAN as a partner. The minister warned that if output does not rise, the midstream and downstream segments will continue to struggle, underlining the interdependence of the entire sector.

He described the present economic hardship as reversible mainly through oil and gas exploration and production. In his view, no external party will rescue Nigeria’s petroleum industry; the solution lies with Nigerian stakeholders. He therefore urged capable Nigerians in the sector to step up, adding that if Nigerians are allowed to operate at the level they deserve, the industry would see marked improvement.

Idle Wells as Low-Hanging Fruit

A central part of the minister’s message was the under-utilisation of Nigeria’s drilled oil and gas wells. Lokpobiri pointed out that many seismic surveys have already been conducted and a large number of wells remain idle. He cited one Oil Mining Lease with around 150 idle wells, some drilled and capped since the 1970s. These wells, he said, are "low-hanging fruits" that can be brought back into production quickly.

The government’s policy direction, he explained, includes farming out some of these idle wells for proper utilisation. Because the world is moving toward cleaner energy, Nigeria must use the available window to extract maximum value from existing assets. "Except we increase our production, our midstream and downstream will continue to suffer," he said, framing idle-well utilisation as both an economic necessity and a time-bound opportunity.

Reserves, Local Content and Indigenous Capacity

Lokpobiri said Nigeria has not depleted its oil reserves. He referenced a recent Nigerian Upstream Petroleum Regulatory Commission announcement that, as of 1 January 2024, the country’s crude oil reserves rose by 1.087 billion barrels to 37.5 billion barrels, while gas reserves grew by 2.573 trillion cubic feet to 209.26 TCF. With higher reserves now on record, he argued, it is imperative for government to do all it can to drill more wells and convert resources into production.

The minister also tied this push to the Local Content law, saying its purpose is to enable Nigerians to build strong capacity to compete alongside international counterparts. PETAN Chairman Engr. Wole Ogunsanya reinforced this position, stating that Nigeria must demonstrate its indigenous capacity to explore and drill oil "100 percent." He called on government to grant incentives to stakeholders to improve output and deliver wider economic benefits.

PETAN’s Mandate and Pledge of Support

PETAN is an association of Nigerian indigenous technical oilfield service companies active in the upstream and downstream oil and gas sectors. It was formed to bring together Nigerian entrepreneurs and create a forum for exchanging ideas with major operators and policymakers. One of its core objectives is to acquire, develop, advance and promote petroleum technology for the benefit of Nigerians.

Ogunsanya reassured the minister that PETAN will continue to align with President Bola Tinubu’s vision and support efforts to increase production and develop the energy sector. At the meeting, the association’s Publicity Secretary, Engr. Dr Innocent Akuvue, gave the vote of thanks and pledged PETAN’s readiness to back the ministry. Both men framed the association as a dependable partner in the government’s drive to lift the economy through petroleum development.

Policy Direction and the Energy Poverty Agenda

Lokpobiri said the Tinubu administration is working to place Nigeria on a stronger economic footing and that one of the president’s cardinal objectives is to tackle energy poverty. He noted that as the world transitions to cleaner energy, Nigeria must address its own challenges so it can transit smoothly rather than be left behind.

The minister described an ongoing policy evolution aimed at maximising the use of all available oil and gas wells in the country. This includes the farm-out of idle wells and closer collaboration with indigenous players such as PETAN. He concluded that by working together, government and industry can maximise the opportunities the petroleum sector offers for national prosperity and development.

What this means

Nigeria’s path to higher oil production runs through better utilisation of existing wells, stronger partnership with indigenous service companies and policy reforms that reward local capacity. Minister Lokpobiri’s engagement with PETAN signals a recognition that the country cannot leave drilled assets idle while imports, revenue shortfalls and energy poverty persist. With reserves officially up and PETAN offering technical support, the immediate task is to convert idle wells into flowing production, ensure Nigerians play a leading role and align incentives with output growth. The window is finite: as the global energy transition accelerates, Nigeria must extract maximum value from its petroleum assets now.