By Mardiyyah Abubakar
The President of the Petroleum Technology Association of Nigeria (PETAN), Engr. Wole Ogunsanya, has warned that underutilised capacity, limited drilling activities and funding challenges could prevent Nigeria from achieving its crude oil production targets.
Ogunsanya said these challenges could derail Nigeria’s plan to increase oil production to 2 million barrels per day (bpd) by 2027 and 3 million bpd by 2030.
He spoke on Monday at the Nigerian Content Seminar held during the Nigerian Oil and Gas (NOG) Energy Week, where he participated in a panel session titled “Nigerian Content as an Investment Enabler.”
Ogunsanya said Nigeria has developed strong local capacity across the oil and gas sector, including drilling, fabrication and supply chain services, but much of it remains underused due to reduced investment and a weak project pipeline.
He said the country must increase drilling activities across onshore, shallow water and offshore assets while attracting sustained capital inflows to meet its production goals.
“We have adequate equipment and in-country capacity to achieve up to 3 million barrels per day production. The challenge is how to fully utilise this capacity,” he said.
“Without increased drilling and investment, those targets may remain out of reach.”
The PETAN president noted that while Nigeria’s refining capacity is expanding with projects such as the Dangote Refinery and the rehabilitation of government-owned refineries, crude production has not grown at the same pace.
He blamed the decline in upstream investment on operational challenges and production losses, saying some operators lose up to 70 per cent of output in certain situations.
Ogunsanya said investors would hesitate to commit funds where production losses remain high, stressing the need to address structural problems in the sector.
On financing, he described access to capital as a major factor in boosting production and called for more targeted funding support for asset development and equipment deployment.
He said PETAN members have benefited from more than $20 billion in local content financing initiatives supported by the Nigerian Content Development and Monitoring Board (NCDMB), which have helped strengthen indigenous capacity.
However, he called for more funding focused on critical equipment and projects that can maximise the use of existing assets.
Ogunsanya also highlighted the growing role of Nigerian banks in financing the oil and gas sector, noting that some international oil companies are now working with local financial institutions to support contractors.
He said expanding the project pipeline would improve equipment utilisation, grow indigenous businesses and create a more sustainable oil and gas industry.
Ogunsanya maintained that Nigeria can achieve its production targets and strengthen its position in the global energy market if it tackles investment barriers and accelerates drilling activities
