‘Project execution should determine Nigeria’s 3mb/d target’

The Society of Petroleum Engineers (SPE), Nigerian Council, has warned that Nigeria’s ambition to increase crude oil production to three million barrels per day by 2030 will depend less on the award of new oil blocks and more on the country’s ability to rapidly execute projects, mobilise investment, deploy technology and strengthen indigenous operators. Chairman of the SPE Nigerian Council, Francis Nwaochei, who is also Deputy General Manager, Partners Relations and Regulatory Affairs at Chevron Nigeria Limited, said the country’s energy sector has entered a decisive phase where operational execution, rather than policy announcements, will determine whether recent reforms translate into increased production and economic growth. Speaking ahead of the 49th Nigerian Annual International Conference and Exhibition (NAICE 2026), scheduled for August 3-5, in Lagos, Nwaochei said this year’s conference theme, “Thriving in the Evolving Global Energy Landscape: Collaborative Growth and Resilience,” reflects the realities confronting Nigeria and Africa’s energy industry. According to him, rapid changes in global investment patterns, technology adoption, geopolitical dynamics and decarbonisation policies require African producers to pursue energy security and environmental sustainability simultaneously rather than treating them as competing priorities. He argued that resilience for Africa should no longer be viewed merely as protection against market shocks but as a competitive strategy capable of attracting investment, reducing costs and expanding access to energy. “Our continent faces the dual challenge of ending energy poverty while accelerating industrialisation. Achieving both requires collaboration among regulators, operators, financiers, technology developers and service providers to reduce operating costs, de-risk investments and unlock capital,” he said. Nwaochei described the recent conclusion of Nigeria’s 2025 licensing round by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as an important milestone but cautioned that the award of exploration licences represents only the beginning of the investment cycle. He commended the Federal Government, the Ministry of Petroleum Resources and the NUPRC for conducting what he described as a transparent, automated and market-driven licensing process under the Petroleum Industry Act (PIA). However, he stressed that the real challenge now lies in converting the newly awarded assets into commercially viable production. “The licensing round is only the catalyst. Turning those licences into producing assets requires rapid technology deployment, reservoir management, disciplined capital mobilisation and efficient project execution,” he said. According to him, discussions at NAICE 2026 will focus on the commercial and technical pathways required to move the newly awarded assets from exploration to production while supporting Nigeria’s production target. Nwaochei noted that indigenous operators have become increasingly central to Nigeria’s upstream industry following the ongoing divestment of international oil companies from onshore and shallow-water assets. He said local companies now account for about 60 per cent of national oil production and must demonstrate stronger operational capability, financial discipline and environmental stewardship as they assume responsibility for ageing assets and decommissioning obligations. “The success of indigenous operators will largely determine Nigeria’s future production growth,” he added. Beyond upstream operations, the SPE chairman identified domestic refining as another strategic pillar of Nigeria’s energy security. He said the expansion of large-scale private refineries alongside modular refining projects presents an opportunity to transform Nigeria into a regional refining hub, provided government succeeds in balancing domestic crude supply obligations with commercially sustainable pricing for producers. SPE Council Secretary, Obianuju Igbokwe urged young professionals to develop both technical and personal leadership skills. “Technical competence will take you far, but personal development will take you even further. Identify professionals whose careers you admire, study how they work, understand their strengths and deliberately build those qualities in yourself. Young professionals should define the kind of reputation they want to build and intentionally develop the skills needed to achieve it,” Igbokwe said. Also, the SPE Chief of Staff, Choja Ojanomare said NAICE should be viewed as a long-term institution rather than an annual event. “NAICE is not a sprint; it is a marathon that has been running for nearly five decades. It has consistently brought together government, regulators, industry players and academia to exchange ideas that have shaped Nigeria’s energy policies over the years. “The conference has contributed significantly to the evolution of Nigeria’s petroleum industry, and its impact extends well beyond a single year,” he said.