Nigeria’s crude oil production has received a significant boost of 200,000 barrels per day (bpd) through the acquisition of divested assets by indigenous firms, according to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri.
Addressing the Africa Energy Week (AEW) in Cape Town on behalf of President Bola Tinubu, Lokpobiri revealed that major International Oil Companies (IOCs) like Shell, ExxonMobil, TotalEnergies, and Eni have recently divested onshore and shallow-water assets as they focus on deepwater exploration. These assets, now in the hands of Nigerian companies, have contributed to the uptick in national production.
“These are not just transfers of assets, they are transfers of confidence, capability, and ownership,” Lokpobiri said, highlighting that the divestments unlocked over $5.5 billion in investment decisions in recent months.
Bold Reforms Powering Nigeria’s Oil Sector Revival
The minister emphasized that Nigeria’s Petroleum Industry Act (PIA) has established a transparent and predictable fiscal and regulatory framework, fostering licensing transparency, host community engagement, and stronger oversight.
Nigeria’s upstream sector is on a strong recovery path, with production reaching between 1.7 million and 1.83 million bpd, boosted by the government’s “One Million Barrels” initiative launched in October 2024. The number of active drilling rigs increased from 31 in January to 50 by July 2025.
Lokpobiri invited global investors to seize opportunities in Nigeria’s energy sector, declaring that the country is “open for business” and positioned to lead Africa’s energy transformation.
Seplat Energy Shares Success in Asset Integration and Financing
Speaking at the event, Roger Brown, CEO of Nigerian independent energy company Seplat Energy Plc, outlined how the company has successfully acquired and integrated divested assets, including those from Mobil Producing Nigeria Unlimited (MPNU).
Brown said Seplat raised over $4 billion in debt financing to expand operations while maintaining a low leverage ratio, enabling the company to increase production and operational efficiency with a focus on safety and environmental performance.
Seplat’s CFO, Eleanor Adaralegbe, highlighted the challenges of financing in Nigeria’s energy sector and the company’s strategy to access low-cost capital by maintaining a strong credit profile, asset diversification, and operational excellence.
Lokpobiri also urged African nations to leverage $4 trillion in domestic capital from pension and insurance funds to fund energy infrastructure and industrial development, reducing reliance on hydrocarbon imports.
He called for a balanced global energy narrative emphasizing a diverse energy mix to ensure availability, accessibility, and affordability, affirming Nigeria’s commitment to responsibly use oil resources while advancing sustainable energy.
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