AA Holdings founder says access to oil and gas assets must be matched by financing, infrastructure and execution capacity to generate production and investment returns.

Indigenous oil and gas companies in Nigeria must strengthen their financing, infrastructure and project execution capabilities to turn asset acquisitions into higher production and sustainable returns, Austin Avuru, Executive Chairman and Founder of AA Holdings Ltd., has warned.

Avuru said ownership of petroleum assets alone would not guarantee increased output, arguing that the ability to fund drilling, develop evacuation infrastructure, sustain exploration and bring hydrocarbons to market would determine whether indigenous operators could deliver on Nigeria’s production ambitions.

He spoke during a high-level strategic panel at the 2026 Energy Conference of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos, themed “Access to Assets: Empowering Players and Driving Growth.”

His remarks come as indigenous companies assume greater responsibility for oil and gas assets following divestments by international oil companies, placing renewed attention on their capacity to finance and operate increasingly complex projects.

For investors, Avuru’s central message was that Nigeria’s indigenous upstream sector is shifting from acquiring assets to developing them commercially.

“You had established capacity. You were in business. You didn’t get access,” he said, recalling how capable operators had historically struggled to gain access to petroleum assets and the infrastructure required to monetise them.

Infrastructure gaps constrain asset value

Avuru highlighted the difficulties operators faced in developing evacuation infrastructure, particularly pipelines needed to transport production from fields to processing facilities and export terminals.

He recalled the lengthy process of building the infrastructure required to bring acquired assets into production, noting that delays could undermine project economics and postpone revenue generation.

“We were struggling to build a pipeline to build assets, to realise. Can you imagine how long it took?” he said.

His comments underscore the importance of infrastructure access in Nigeria’s upstream investment landscape, where the commercial value of an oil or gas field depends not only on its reserves but also on the availability of reliable evacuation routes, processing facilities and markets.

Without these supporting systems, operators may struggle to increase output even when they have secured ownership of productive assets.

For indigenous companies, infrastructure constraints can also increase capital requirements, extend project timelines and expose investments to additional operational and financing risks.

Avuru argued that access to petroleum assets must therefore be considered alongside access to gas infrastructure, transportation networks and financing.

Indigenous operators face growing capital requirements

The transfer of upstream assets to Nigerian-owned companies has created opportunities for greater domestic participation in exploration and production. However, ownership also brings responsibility for financing field development, maintaining facilities, managing production risks and replacing depleted reserves.

Avuru stressed the need for stronger exploration investment and execution capacity if indigenous operators are to sustain production over the long term.

Exploration is particularly important because maintaining output from existing fields alone cannot guarantee lasting growth as reservoirs mature and production declines.

Companies must continually invest in new wells, field redevelopment, technology and reserve replacement to sustain their portfolios and meet production targets.

Access to long-term financing will be essential to this process, given the substantial upfront expenditure and extended development periods associated with many upstream projects.

Avuru’s intervention also highlights the need for operators to demonstrate strong project management, technical competence and financial discipline to attract investors and lenders.

For financial institutions, the shift towards indigenous ownership means that capital allocation decisions will increasingly depend on operators’ ability to demonstrate commercially viable development plans, reliable infrastructure access and credible production growth strategies.

Asset acquisitions must translate into barrels

Nigeria’s upstream sector is seeking to increase production, strengthen energy security and generate additional export earnings. Achieving these objectives will depend partly on how effectively indigenous operators develop the assets they have acquired.

The Petroleum Industry Act and divestments by international oil companies have reshaped ownership patterns across parts of the industry. Yet changes in ownership do not automatically translate into higher production or improved operating performance.

Operators must still overcome infrastructure bottlenecks, secure funding, manage security risks and execute development programmes within commercially viable timelines.

Avuru’s warning points to a critical distinction for investors: acquiring an oil or gas asset establishes ownership, but generating value requires sustained capital expenditure and the ability to deliver projects.

He also stressed the importance of access to international financing as companies seek to expand production, develop gas resources and fund long-cycle investments.

The ability of Nigerian operators to mobilise domestic and foreign capital, build supporting infrastructure and execute projects efficiently will therefore be central to determining whether the current wave of asset transfers produces lasting growth in the country’s upstream industry.

Industry leaders discuss access to assets

Other panellists at the NAEC conference included Cecilia Olajumoke Ajayi, President of the Nigerian Association of Petroleum Explorationists (NAPE); Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN); and Alero Balogun, General Manager, Corporate Communications, Oando Plc.

Chike Nwosu, Group Chief Executive Officer of HSI Energies Ltd., moderated the session.

The discussions examined the barriers facing indigenous companies seeking to expand their participation in Nigeria’s energy industry, including access to assets, capital, technology and infrastructure.

For the sector, the next phase of indigenous growth will depend on whether local operators can convert increased ownership into sustained production, commercially viable investments and greater value creation across Nigeria