The Nigerian National Petroleum Company Limited (NNPCL) says it is working on measures that could cut the oil and gas sector’s operating costs by between $3bn and $4.5bn this year.
Group Chief Executive Officer, Bayo Ojulari, disclosed this in Lagos during the 50th anniversary celebration of the Nigerian Association of Petroleum Explorationists (NAPE). Represented by the company’s Executive Vice-President, Upstream, Udobong Ntia, Ojulari said the plan aligns with a presidential directive aimed at attracting $30bn in fresh oil and gas investments over the next two years and up to $60bn by 2030.
“In the last three to six months, we have developed a roadmap to save about $3bn by December. Our goal is to push this to $4.5bn before the end of 2025 by lowering unit operating and technical costs. We must do more with less,” he stated.
According to him, Nigeria’s crude oil production has seen steady growth in 2025, moving from about 1.4 million barrels per day at the end of last year to more than 1.8 million barrels per day by July — an increase of roughly 400,000 barrels in seven months. He credited the gain to improved collaboration among industry players and the restoration of full operational capacity on the Trans-Niger Pipeline.
Ojulari also highlighted the upcoming Bonga North project, expected to add 150,000 barrels per day to national output, as further evidence of the sector’s growth momentum.
However, he warned that much of Nigeria’s oil infrastructure is ageing and requires urgent renewal. “We must replace old facilities and adopt a stronger maintenance culture. Sustainable strategies will help ensure we are not left with deteriorating assets,” he said.
The NNPCL boss urged wider adoption of advanced technologies, such as artificial intelligence, real-time monitoring systems, and digital twin simulations, to improve production efficiency and decision-making speed.
“These tools allow for instant insight into well conditions, enabling quick operational adjustments that would normally take weeks. While initial costs are high, long-term savings and efficiency gains are worth it,” he noted.
On funding, Ojulari stressed the need for innovative financing approaches to attract investors, pointing out that capital providers expect clear returns on their investments.
He concluded by reaffirming NNPCL’s readiness to collaborate with stakeholders to maintain production growth and avoid missing opportunities. “We want to look back and say, ‘We made the right calls,’ not regret the chances we didn’t take,” he said.
