NNPCL Executive Vice President, Tombomieye Reveals Roadmap For Nigeria’s Upstream Sector

The Executive Vice President, Upstream, Nigeria National Petroleum Company Ltd, Engr. Adokiye Tombomieye, has laid out an insightful roadmap for the future of Nigeria’s Upstream Sector, addressing the complex balance of hydrocarbon monetization, sustainable growth, and socioeconomic development.

Tombomieye represented by Olanrewaju Igandan, Upstream Business Advisor, revealed Nigeria’s extensive reserves, with proven crude oil and condensate reserves of 36.966 billion barrels and 208.83 Trillion cubic feet of natural gas.

In support of exploration efforts to attain the national aspiration of 40 billion barrels of crude oil reserves by 2030, he said the NNPC Limited has been active within the inland basin and has partnered with TotalEnergies for the discovery of the Ntokon field in OML102.

Recognizing the need for a conducive investment climate, the EVP highlighted the pivotal role of the Petroleum Industry Act (PIA) in creating a transparent, accountable, and efficient sector.

He emphasized that the separation of regulatory and commercial functions under NNPC Limited would create a level playing field for investors, thereby fostering a more attractive local and foreign investment environment.

He said, “Please permit me to highlight key element of the roadmap for the upstream sector:

“Enhancing security: This issues is a significant barrier of our realization of our vision for the upstream sector. In August 2022, with the insecurity surrounding our critical pipeline infrastructure, it was so severe that we dropped less than one million barrels of crude only.

“So, to address this issues, NNPC with collaboration with the partners, we had to device a new security architecture for the entire industry and with that we have seen an upward trend in our production so much that in February 2022, we went to as high as 1.69 millions barrels crude oil.

“Second, conducive investment climate. Like I said, we separated the regulatory and commercial functions and so that provided a level playing ground and an environment that is conducive to attract both local and foreign investment.

“Thirdly, Asset Integrity. A significant amount of our deferred production is as a result of infrastructure issues. At least 40 per cent of our main pipeline infrastructure systems are over 30 to 40 years old and and they must be replaced.

“Assets integrity issues have created issues such as derating of the pipelines, hydro carbon spills, postponement and shutdowns. We will need enormous investment to replace aging infrastructures.

“Number 4, Digital Oilfield Technology: Many E & P companies now invest more in digital oilfield technology to production efficiency and reduce operating cost.

“This effort will need to intensify efforts to integrate hardware, software data analysis techniques, digital oilfield technologies to collect data in real time so that decisions can be made in real time and some may include reservoir molding, high performance reeling tools, high earned Electrical Submassical Pumps (ESP).’

Additionally, he addressed the need for enhanced security, asset integrity, digital oilfield technology, and the adoption of Carbon Capture, Utilization, and Storage (CCUS) technologies, in line with global demands for cleaner energy sources.

Looking to the future, Tombomieye underscored the necessity for a dual strategy that balances Nigeria’s urgent socioeconomic needs with global sustainability goals.

He championed the maximization of hydrocarbon reserves monetization, utilizing the revenue generated to invest in key sectors such as education, healthcare, and infrastructure development, whilst proactively pursuing the development of renewable energy sources.

With strengthened collaborations, robust regulatory frameworks, and a focus on innovation and technology, Tombomieye expressed confidence in a future where the upstream sector becomes a beacon of progress, driving economic growth, and improving the lives of all Nigerians.