Oil producers get boost as NNPC clears legacy debt.
Roger Brown, Chief Executive Officer of Seplat Energy Plc, stated that the Nigerian National Petroleum Company Limited has paid off its legacy debts and is now operating with enhanced financial alignment and discipline, describing the event as “a game changer” for indigenous oil producers.
On Wednesday in Abuja, Brown lauded NNPCL for its renewed emphasis on operational efficiency and collaboration during a high-powered panel session titled “Harnessing Africa’s Energy Shift – From Acquisition to Optimisation” at the 2025 Nigerian Oil and Gas conference.
Brown stated, “Yesterday (Tuesday), you heard from the GCEO (of NNPC) discussing what the company is doing. One of the most important aspects is cash flow and ensuring it, and I’ll tell you a story. When we listed in 2014, we raised $500 million, which is half a billion dollars. And NNPC owing us $550 million. More than we raised at our IPO. And that is history.”
According to him, the NNPC has recently altered its payment and cash flow structures, allowing for more seamless collaboration with independent producers.
“Cash flows were paid. The NNPC has recently issued a very explicit statement regarding alignment. It’s a partnership. And that is what the indigenous players are bringing to the table here,” he stated.
Remember that the NNPC had long struggled with multibillion-dollar debts due to both domestic and international petroleum product suppliers. The years-long backlog greatly hampered operations, caused payment delays to joint venture partners, and destroyed investor trust throughout the oil and gas value chain.
Domestic and foreign petroleum product providers stopped delivering the item in 2024 due to around $6 billion in debt.
Brown reflected on Seplat’s acquisition of ExxonMobil’s onshore assets in 2024, saying indigenous firms were now better suited to operate and optimise divested assets.
“So, when we concluded the Mobil acquisition last year, we were ready. “The indigenous sector is thriving because we understand the terrain, engage communities directly, and play for the long term,” he explained.
He continued, “When things go wrong, as they always do, we don’t panic. In 2016, our pipeline was shut down. In 2017, we didn’t flee. You cannot flee from your own house. That’s the approach we bring to these valuable assets in the onshore and shallow water offshore sectors.”
Brown stated that Seplat presently owns 11 blocks, eight of which it operates, in oil and gas terrains, with a rising emphasis on domestic gas monetisation and exports via LNG and CNG.
“We already supply NLNG. But we’re also planning for LNG projects in the works, and we’re spending extensively in domestic gas to meet local demand,” he said.
Speaking on the panel, Dr Ainojie Irune, Managing Director of Oando Energy Resources Nigeria Limited, praised the NNPC’s strategic focus and better engagement with independent operators.
“For the first time, we have a national energy corporation that is solely focused on production targets and not sidetracked by other mandates. It’s staffed with the appropriate people in the right positions,” Irune remarked.
“philanthropy begins at home, and the NNPC has started that philanthropy. They are addressing security, OPEX, and even streamlining contractual procedures. “The rest of us must agree.”
According to him, indigenous enterprises, which were earlier considered marginal players, are now the foundation of Nigeria’s energy future. “Independents have risen from the bottom of the pyramid to spearhead Nigeria’s upstream strategy. “The future is very achievable with a reliable partner like NNPCL,” he stated.
Meanwhile, Shell Nigeria’s Managing Director, Ronald Adams, has revealed that the Ubonga North oil project, which received Final Investment Decision in December 2024, is projected to add up to 100,000 barrels of crude oil per day to Nigeria’s production capacity by mid-2027.