Nigeria's marginal fields, which are often undercapitalised and underdeveloped, are crucial for growth and sustaining upstream activity.

However, the fragmentation of these fields has led to redundant investments, suboptimal recovery, and a lack of scalable impact, according to Grace Orife, African Energy Chamber advisory Board Member.

To unlock this potential, collaboration is key. A shared infrastructure model can reduce cost per barrel and enhance asset longevity, replacing asset control as the strategic lens.

This can be achieved through joint ventures between indigenous companies, such as Platform Petroleum and Newcross Petroleum.

The Petroleum Industry Act (PIA) has been a game-changer for Nigeria’s energy industry, promoting transparency, streamlining regulations, and reforming tax and royalty structures, states Orife.

It also addresses marginal field development, providing a clear licensing framework and resolving legal ambiguities.

With the PIA in place, Nigeria’s energy sector is poised for a revival, enabling the country to better meet its domestic needs, including reliable electricity and economic growth.

To translate this vision into operational reality, indigenous firms must move beyond handshake agreements to structured partnerships that incorporate strong governance models, transparent rules for decision-making, risk-sharing, and conflict resolution.

Government regulators have a catalytic role to play by offering fiscal incentives, easing licensing for consortia, and prioritising collaborative proposals.

The future of Nigeria’s upstream oil industry will be shaped by those who recognise collaboration as a competitive advantage.

Marginal fields represent more than untapped reserves; they are an opportunity to reimagine how indigenous oil and gas companies create value.

By sharing infrastructure, pooling resources, and aligning strategies, local operators can unlock performance at scale, attract investment, and meet rising ESG standards with credibility, concludes Orife.