10 Best Upstream Oil & Gas Companies in Nigeria

07 Oct 2025

The upstream oil and gas sector in Nigeria involves exploration, appraisal, development, and production of crude oil and natural gas resources. Historically dominated by international oil companies (IOCs) and joint ventures with the Nigerian government (via NNPC and its upstream arm, NPDC), the sector has been shifting towards more indigenous participation under policy reforms and asset divestments. Key metrics that define success for upstream firms include daily production output (barrels of oil per day), reserves (proven, probable, possible), cost of lifting, technical capability (especially for deepwater/offshore operations), and ability to manage risks like theft, sabotage, environmental compliance, and regulatory hurdles. Recent years have seen significant transactions where IOCs have sold onshore and shallow-water assets to local companies. Seplat Energy has been especially prominent, acquiring ExxonMobil’s onshore shallow-water (MNPU) assets, expanding its production footprint. NAOC’s assets being acquired by Oando is another example. TotalEnergies and Shell still have strong upstream operations offshore, including deepwater fields. Challenges include infrastructure (pipelines, export terminals), security (militant threats, theft), regulatory environment (licensing, royalties, environmental standards), and ensuring local content. On the flip side, Nigeria’s upstream potential remains large with underexploited deepwater reserves, marginal fields, and gas fields yet to be fully monetized. The Petroleum Industry Act (PIA) and recent reforms aim to improve investment climate, transparency, cost recovery, and licensing, so leading companies are those that can navigate both technical and regulatory landscapes.