Nigeria’s Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, has announced that the country’s crude oil production has increased by 200,000 barrels per day following the takeover of assets by indigenous firms from International Oil Companies (IOCs).
The development is expected to further boost Nigeria’s economy, which heavily relies on oil revenue.
IOCs such as Shell, ExxonMobil, TotalEnergies, and Eni have been divesting from their onshore and shallow-water oil and gas assets in Nigeria, shifting their focus to deepwater operations.
The divestment has led to over $5.5 billion in Final Investment Decisions (FIDs) within months, with indigenous firms taking over these assets and increasing production.
Senator Lokpobiri, who delivered a keynote address on behalf of President Bola Tinubu at the Africa Energy Week (AEW) in Cape Town, South Africa, also highlighted the need for more cooperation among African countries to explore the roughly $4 trillion in domestic capital, including pension and insurance funds.
Lokpobiri also outlined the bold policy measures implemented under the current administration, particularly the Petroleum Industry Act (PIA), which provided a clear and predictable fiscal and regulatory environment.
Hee said that the PIA, has laid the foundation for licensing transparency, host community engagement, strengthened regulatory oversight, and a fair contractual framework.
“What makes Nigeria now different is the legal, regulatory, financial, and structural transformation we are delivering,” the minister said.
A statement on Thursday by Lokpobiri’s spokesperson, Nneamaka Okafor, quoted the minister as declaring that Nigeria is “open for business” and actively pursuing policies that prioritise investment, efficiency, and long-term growth in the oil sector.
“This gathering is more than a conference, it is a call to action,” he said, stressing that Nigeria is ready not just to participate in the global energy market, but to lead reform and growth on the African continent.
“Nigeria’s upstream sector is showing signs of strong recovery. The Project ‘One Million Barrels initiative’, launched in October 2024, has raised daily crude oil production to between 1.7 and 1.83 million barrels per day, with a notable increase of 300,000 barrels per day in July 2025 alone.
“Additionally, the number of active drilling rigs has grown from 31 in January to 50 by July 2025, a clear signal that reforms are unlocking value across the sector,” he added.
Lokpobiri also stated that the recent asset divestments by IOCs had unlocked over $5.5 billion in Final Investment Decisions (FIDs) within months.
“These are not just transfers of assets, they are transfers of confidence, capability, and ownership.
”The divestments have already added approximately 200,000 barrels per day to national production, the minister said.
Lokpobiri urged the continent to retain more value from its hydrocarbon resources by focusing on infrastructure, industrial development, and localised value chains.
He noted that Africa spends over $120 billion annually on hydrocarbons, largely through imports, calling it a missed opportunity for economic transformation.
The minister advocated for stronger intra-African collaboration and financing, emphasising that Africa holds nearly $4 trillion in domestic capital, including pension and insurance funds.
“The question is no longer about the availability of funds, but how we can channel them into productive investments on our continent,” he said.
The minister called for balance and equity. He insisted that the narrative must shift toward a diverse energy mix, not abandonment of any resource.
“The focus should be on availability, accessibility, and affordability of all forms of energy,” he said.
He made it clear that Nigeria, like other nations, would continue to utilise its oil resources responsibly while building a diversified and sustainable energy base.
Lokpobiri reaffirmed Nigeria’s role as a leading energy player in Africa.
“We are offering opportunities at scale, reform with consistency, incentives with clarity, local participation with respect, and a vision that modernises with purpose,” he stated.
He extended an invitation to global investors, urging them to come to Nigeria and “be part of the energy revolution.”
Lokpobiri explained that with strong reforms, ambitious targets, and an open-door policy, Nigeria was charting a bold path forward in Africa’s energy future.
Also speaking at the event, top officials of Seplat Energy Plc, a leading Nigerian independent energy company, which acquired some Mobil Producing Nigeria Unlimited (MPNU) assets recently, stated that the firm has raised more than $4 billion in debt to develop and grow operations whilst continuing to maintain a low leverage threshold of below 1.5x through the cycle.
Chief Executive Officer of the company, Roger Brown, said Seplat recorded unprecedented growth since it was founded by acquiring divested assets, unlocking value from them, improving efficiency and safety performance of the assets, whilst driving the entire growth process with a world-class and resilient workforce.
Brown, who spoke during a Fireside Chat titled “Assets Acquisition Success Strategies: Seplat Energy”, said the company has successfully integrated major acquisitions in the last decade, each time improving efficiency and safety performance, while at the same time reducing routine emissions.
He also said the goal had been to move quickly to re-engage wells and facilities resulting in the delivery of immediate results; investing early in integrity and reliability thus reducing downtime while setting a foundation for future growth; and integrating not isn’t just systems, but people.
“We found strong cultural alignment with our new colleagues, and that’s been key to seamless performance. We’ve welcomed their expertise and insights and the entire Group is benefiting from them,” Brown said.
According to the Seplat CEO, by combining Seplat’s onshore experience with decades of offshore know-how from new colleagues, the company has built a stronger operation from day one, which is already delivering higher cash flow.
“The recent reserves upgrade shows we have acquired a high-quality asset with significant production potential in both oil and gas, and much of this is within easy reach, close to export infrastructure that we control.
”We are confident we can increase production and that aligns with the government’s target to increase liquids production to 3 million barrels, and to increase gas production for both domestic energy and export markets,” he added.
Brown also said Seplat Energy focused on acquiring assets where its operating capability could unlock hidden value especially mature fields that benefit from a more agile, entrepreneurial operator.
“We’ve already proven we can acquire assets onshore and bring them up to high levels of production, whilst keeping tight control of costs.
”This has helped us build up a strong balance sheet, invest in our future and return a healthy dividend stream to investors,” Brown said.
The Seplat Energy boss disclosed that the focus of the company had always been on safety and operational excellence, which are targeted at maximising production and cash flows that strengthen the business.
“We’re a low-cost operator, meaning we can be profitable at good oil prices and we’ve proven we can survive periods of low prices and prolonged lock-ins.
”We look after our staff, all of whom are very highly qualified, mostly Nigerian, and ensure they are fully aligned with our success, which in turn will bring success for Nigeria’s energy system. We’ve got a deep bench and a strong succession pipeline,” he said.
In the same vein, Chief Financial Officer (CFO), Seplat Energy Plc, Eleanor Adaralegbe, who spoke during a panel discussion titled: “Financing Upstream Projects for Domestic Energy Security”, said since inception, the company has continued to blaze the trail with a highly successful capital raising history, of which the company had raised more than $4 billion in debt to develop and grow operations.
On the company’s key credit highlights, Adaralegbe listed: Balanced assets with substantial production; portfolio diversification through gas business; uniquely positioned to capture future growth; strong financials and well-tested risk management; well managed liquidity; focus on tax efficiencies; experienced management and strong governance; and leading indigenous and ESG-focused operator.
“Seplat Energy has repeatedly been able to refinance to extend maturities and bring down our cost of debt while keeping leverage moderate.
”We have been able to do this because we are focused on things that lenders are focused on – asset diversification, steady production, strong financials, low leverage, focus on tax efficiencies, strong leadership,” she said.
She also said that Nigeria’s energy security depended heavily on upstream oil and gas, which fueled both domestic consumption and foreign exchange earnings; declining investment in upstream projects due to global energy transition pressures.
“Until utility-scale renewables, storage, and transmission are materially larger, Nigeria’s ability to keep lights on, vehicles moving, industries running, and households cooking cleanly is fundamentally constrained by upstream oil and gas development, output and associated midstream delivery that is upstream development is a direct lever on national energy security,” she advised.
According to Adaralegbe, a stable and predictable fiscal framework is the single most powerful enabler of upstream financing; of which consistent application of PIA provisions, timely JV cash-call settlements, and clarity on commodity pricing policies are essential to de-risk projects and crowd in long-term capital.
Lokpobiri highlighted the significance of the Petroleum Industry Act (PIA), which provides a clear and predictable fiscal and regulatory environment for investors.
He emphasised that Nigeria is “open for business” and actively pursuing policies that prioritize investment, efficiency, and long-term growth in the oil sector.
He said that the daily crude oil production has increased to between 1.7 and 1.83 million barrels per day, with a notable increase of 300,000 barrels per day in July 2025.
The minister added that the number of active drilling rigs has grown from 31 in January to 50 by July 2025, signaling a strong recovery in the upstream sector.
According to him, the recent asset divestments by IOCs have unlocked over $5.5 billion in FIDs, demonstrating confidence in Nigeria’s energy sector.
Seplat Energy Plc, a leading Nigerian independent energy company, recently acquired Mobil Producing Nigeria Unlimited (MPNU) assets and has raised over $4 billion in debt to develop and grow operations.
The company’s CEO, Roger Brown, highlighted the successful integration of major acquisitions, improving efficiency and safety performance while reducing routine emissions.
Seplat Energy’s CFO, Eleanor Adaralegbe, emphasised the importance of financing for upstream projects, citing the company’s successful capital raising history.
She noted that a stable and predictable fiscal framework was essential for upstream financing, and consistent application of PIA provisions, timely JV cash-call settlements, and clarity on commodity pricing policies are crucial to de-risk projects and attract long-term capital.
Nigeria’s energy sector is showing signs of strong recovery, driven by bold policy measures and reforms.
With the country’s vast hydrocarbon resources and growing investment in the energy sector, Nigeria is poised to play a leading role in Africa’s energy future.
