Nigeria’s onshore oil producers, once buoyed by rising stakes in the country’s divested upstream assets, are now feeling the heat of escalating operational costs, a trend that is threatening profitability and jeopardising the nation’s target of ramping up crude output. According to industry data from Welligence Energy Analytics, declining production across onshore portfolios, where independents now dominate, has pushed average unit operating costs (UOC) into the double-digit range, severely squeezing margins and stalling investment in the up
Nigeria’s onshore oil producers, once buoyed by rising stakes in the country’s divested upstream assets, are now feeling the heat of escalating operational costs, a trend that is threatening profitability and jeopardising the nation’s target of ramping up crude output. According to industry data from Welligence Energy Analytics, declining production across onshore portfolios, where independents now dominate, has pushed average unit operating costs (UOC) into the double-digit range, severely squeezing margins and stalling investment in the up