Top energy investors and operators in Nigeria’s upstream oil and gas sector have called for regulatory consistency, contract sanctity and critical gas infrastructure to unlock the country’s long-term energy potential, amid intensifying global competition for capital.
The call was made by executives from major international oil companies (IOCs) and indigenous operators during a panel session at the ongoing Nigeria International Energy Summit (NIES) in Abuja on Wednesday.
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Participants at the session—drawn from ExxonMobil, Chevron, TotalEnergies, Seplat Energy, Renaissance Africa Energy and Oando—agreed that Nigeria’s ability to attract sustained upstream investment will depend on policy stability, disciplined financing, infrastructure expansion, and improved host-community relations.
The panel, themed “Capitalising Africa’s Global Upstream Momentum,” was moderated by Vimbai Mutinhiri-Ekpenyong, Anchor and Co-Host of ARISE TV Morning Show.
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Global capital, local competition
Speaking at the session, Matthieu Bouyer, Managing Director of TotalEnergies E&P Nigeria, said the company’s strategy in Nigeria is built around two pillars: growing oil and gas production, and expanding electricity generation through integrated power projects.
Mr Bouyer explained that hydrocarbons—oil and gas—remain central to TotalEnergies’ Nigerian operations and continue to compete for capital within the company’s global portfolio.
“We are competing with other countries and projects for capital, so it is critical that Nigeria remains attractive,” he said, noting that demonstrating competitive returns remains a daily challenge.
From Chevron’s perspective, Jim Swartz, Chairman and Managing Director of Chevron Nigeria, said the company has deliberately avoided an asset divestment strategy, choosing instead to retain and optimise its portfolio.
He said Chevron continues to invest in asset reliability through infill drilling, appraisal wells and exploration within existing fields, adding that several in-field discoveries were made in the past year.
“These are long-term investments,” he said, stressing that contract sanctity and regulatory consistency are essential for returns.
Mr Swartz welcomed recent government incentives and progress on environmental approvals for deepwater projects, urging authorities to extend similar pragmatism to shallow-water and onshore developments.
On gas, he said Chevron sees opportunities in both international exports and domestic supply but warned that ageing and limited gas pipeline infrastructure remains a major bottleneck for power generation, fertiliser production and regional gas supply.
Proving scale and discipline
Responding to concerns around investor confidence, Roger Brown, Chief Executive Officer of Seplat Energy Plc, said indigenous operators are increasingly proving their ability to deliver scale, returns and discipline.
He noted that Seplat has been active in asset acquisitions for over a decade and has accessed international capital markets since 2014.
According to him, rising investor interest is being driven by clearer government messaging, regulatory reforms and defined national production targets.
As evidence, he cited a recent Eurobond issuance that priced strongly and received a rating close to Nigeria’s sovereign level.
“Demand exists when policies are consistent and credible,” Mr Brown said.
However, he warned that oil and gas capital has become more selective, with African and international banks competing for a shrinking pool of funds.
“Operators must be exemplary borrowers,” he said, noting that a single default could damage confidence across the sector.
Also speaking, Jagir Baxi, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, said the company evaluates Nigerian projects through a global portfolio lens.
He said ExxonMobil has taken steps to improve competitiveness, including portfolio adjustments in shallow water and renewed focus on redeveloping mature assets.
Mr Baxi disclosed plans for a significant redevelopment programme at one of its long-producing facilities later this year, alongside progress on new discoveries.
He said recent government actions over the past two years have strengthened Nigeria’s national framework, adding that operators must now convert policy goodwill into bankable, project-specific outcomes.
“If we can successfully deliver early projects, it will unlock further investment,” he said.
Communities and the Social Licence to Operate
On host community relations, Tony Attah, Managing Director and CEO of Renaissance Africa Energy, said operational stability depends as much on community trust as on government approvals.
He explained that beyond statutory licences, operators must earn a social licence to operate—a social contract between companies and host communities.
Mr Attah said the Petroleum Industry Act (PIA) has helped formalise host community structures and clarify mutual obligations, noting that Renaissance currently works with multiple functioning host community trusts.
“Today, communities are involved in identifying their priorities,” he said. “When communities are truly involved, the conversations change, the tone changes, and stability follows.”
He illustrated this with an example of a failed water project implemented without community input, underscoring the need for development interventions shaped by local realities.
Environmental Concerns Remain
Despite operators’ optimism, environmental degradation and unresolved host community grievances remain a concern. Decades of oil exploration have left several oil-producing communities with polluted land and waterways.
Recent PREMIUM TIMES investigations found that several oil-producing communities, including Ogoniland, continue to suffer hydrocarbon pollution.
The report showed that many residents, whose livelihoods depend on farming and fishing, have lost access to farmland and waterways due to recurring oil spills from creeks and pipelines, often attributed to oil companies’ negligence.
While government efforts have focused on attracting fresh investment to boost economic growth, panellists acknowledged that environmental remediation has not kept pace with industry expansion.
NNPC Signals Cultural Shift
In his remarks, Udobong Ntia, Executive Vice President, Upstream, NNPC Limited, said the most significant change has been a cultural shift in engagement between the national oil company and operators.
“For the first time in years, there is real engagement and openness,” he said.
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“When the leadership change happened, we realised we had to start speaking with operators frequently and directly. At the end of the day, we are all here to create value. If the ecosystem doesn’t work, everyone struggles.”
Mr Ntia said NNPC is prioritising cost reduction and technology adoption, stressing that digitalisation is no longer optional.
“We recently identified about $2 billion worth of opportunities where operators can collaborate to make the industry work better,” he said.
He warned that global energy markets remain volatile and capital is increasingly selective.
“This is a moment where the stars are aligned,” he said. “If we don’t act now, we may look back and regret it.”
While challenges persist—particularly around infrastructure, financing and environmental remediation—participants agreed that alignment between policy, capital discipline, infrastructure investment and genuine community engagement could unlock significant growth across Nigeria’s oil and gas value chain.
“This is not the time to hesitate,” Mr Ntia said. “We are going to make it work.”
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