In a significant turning point for Nigeria’s oil and gas industry, the Nigerian National Petroleum Company Limited (NNPCL) has fully cleared its legacy debts. This development, according to Seplat Energy Plc CEO Roger Brown, marks a “game changer” for indigenous operators.
Speaking at the Nigerian Oil and Gas Conference in Abuja during a high-level panel titled “Harnessing Africa’s Energy Shift – From Acquisition to Optimisation,” Brown commended NNPCL’s renewed focus on cash flow discipline and operational efficiency.
“When we listed in 2014, we raised $500 million. At the time, NNPC owed us $550 million — more than we raised,” Brown recalled. “That’s now behind us. Cash flows have been paid. There is now alignment, and that’s driving real partnerships.”
From Debt Crisis to Financial Clarity
For years, NNPCL grappled with a mounting backlog of payments to local and international partners. By 2024, its debt to petroleum suppliers had reached $6 billion, prompting many to halt deliveries. As a result, operations stalled, and investor confidence plummeted.
However, the recent clearance of these debts signals a new era of financial stability. According to Brown, the state oil company now operates with greater transparency and reliability, creating smoother relationships with upstream partners.
Indigenous Operators on the Rise
Brown also highlighted the evolving role of Nigerian independents, particularly in light of Seplat’s $1.28 billion acquisition of ExxonMobil’s onshore and shallow water assets in 2024.
“When we completed the Mobil acquisition, we were ready. Indigenous firms are thriving because we know the terrain, we engage communities, and we think long-term,” he said.
Moreover, Brown pointed to Seplat’s resilience during past disruptions. “In 2016, our pipeline shut down. In 2017, we stayed. You don’t run from your own home. That mindset defines us.”
Today, Seplat holds 11 oil and gas blocks, operates eight, and is expanding its domestic gas footprint through LNG and CNG projects. “We already supply NLNG,” Brown noted. “But we’re also investing heavily in local gas infrastructure to meet rising demand.”
Growing Industry Confidence
In a similar vein, Dr. Ainojie Irune, Managing Director of Oando Energy Resources, applauded NNPCL’s evolving strategy and leadership.
“This is the first time we have a national energy company truly focused on production. They’re addressing security, operating costs, and even streamlining contracting,” Irune said.
He stressed that indigenous firms, once marginal players, are now central to Nigeria’s upstream vision.
“We’ve moved from the base of the pyramid to the top. With a focused NNPCL, the future is absolutely achievable.”
Shell Pushes Production Frontier
Meanwhile, Shell Nigeria’s Managing Director, Ronald Adams, announced that the Ubonga North oil project, which reached final investment decision in December 2024, is expected to add up to 100,000 barrels per day to Nigeria’s production capacity by mid-2027.
This addition will provide a much-needed boost to national output, especially as the country strives to meet its OPEC production targets and reverse recent declines.
