The Nigerian National Petroleum Company Limited has successfully cleared its substantial legacy debts, now operating with significantly improved financial alignment and discipline.
This pivotal development has been hailed as a “game changer” for indigenous oil producers by Chief Executive Officer of Seplat Energy Plc, Roger Brown.
Speaking during a high-powered panel session titled “Harnessing Africa’s Energy Shift – From Acquisition to Optimisation” at the 2025 Nigerian Oil & Gas conference on Wednesday in Abuja, Brown lauded NNPCL for its renewed focus on operational efficiency and partnership with local operators.
Brown shared a striking anecdote illustrating NNPCL’s past financial challenges: “When we listed in 2014, we raised $500 million; that is half a billion dollars. And NNPC owed us $550 million. More than we raised in our IPO. And that is a thing of the past.”
He emphasised that NNPCL has since transformed its payment and cash flow structure, creating a more conducive environment for smoother partnerships with independent producers.
“Cash flows have been paid. A very clear line from the NNPC now is alignment. It’s a partnership. And that’s what the indigenous players are bringing to the party here,” he stated.
NNPCL had historically grappled with multi-billion-dollar debts owed to both local and international suppliers of petroleum products.
This backlog, spanning years, severely constrained operations, delayed payments to joint venture partners, and eroded investor confidence across the oil and gas value chain.
Notably, in 2024, domestic and foreign suppliers had ceased providing petroleum products due to an estimated $6 billion debt.
Reflecting on Seplat’s acquisition of ExxonMobil’s onshore assets in 2024, Brown asserted that indigenous companies are now better prepared to operate and optimise divested assets. “So when we completed the Mobil acquisition last year, we were ready for it.
“The indigenous sector is thriving because we understand the terrain, we engage communities directly, and we play for the long term,” he explained.
He highlighted the resilience of Nigerian operators: “When things go wrong, which they inevitably will, we don’t panic. In 2016, our pipeline was shut down. In 2017, we didn’t run away.
“You can’t run from your own home. That’s the mindset we bring to these prolific assets in the onshore and shallow-water offshore space.”
Brown noted that Seplat currently holds 11 blocks, operating eight, across various oil and gas terrains, with an increasing focus on domestic gas monetisation and exports through LNG and CNG.
“We are already supplying NLNG. But we’re also preparing for LNG projects under development, and we’re investing heavily in domestic gas to meet local demand,” he added.
Also contributing to the panel discussion, the Managing Director of Oando Energy Resources Nigeria Limited, Ainojie Irune, lauded NNPCL’s strategic focus and improved collaboration with independent operators.
“This is the first time we have a national energy company focused on production targets, not distracted by unrelated mandates. It’s staffed by the right people in the right places,” Irune remarked.
He further stated that NNPCL is actively addressing security, OPEX (operational expenditures), and streamlining contracting processes, signalling a robust commitment to improving the operating environment.
Irune emphasised the growing prominence of indigenous companies, which he believes are now the backbone of Nigeria’s energy future.
“Independents have moved from the base of the pyramid to leading Nigeria’s upstream strategy. With a reliable partner like NNPCL, the future is very achievable,” he concluded.
Meanwhile, Ronald Adams, Managing Director of Shell Nigeria, announced a significant development in the upstream sector: the Ubonga North oil project, which reached its Final Investment Decision (FID) in December 2024, is projected to add up to 100,000 barrels of crude oil per day to Nigeria’s production capacity by mid-2027.
This signifies continued international investment in Nigeria’s key hydrocarbon assets.
