Asaolu Urges Profitable Growth In Oil Sector Consolidation

The Managing Director of NNPC 18, Ibiyemi Asaolu, has called on oil and gas companies to prioritise profitability and value creation when pursuing upstream consolidation, warning that expansion without proper risk assessment could undermine business performance.

Asaolu made the call on Tuesday during a panel discussion at the 2026 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi, United Arab Emirates.

Speaking on the topic, “Upstream Consolidation: Competitive Advantage and the Limits of Scale,” she said companies should not pursue mergers or consolidation simply to increase their size, but should ensure such moves support sustainable and profitable growth.

She explained that consolidation works best when companies have shared business interests, aligned plans and a common vision, adding that compatibility between their organisational cultures was also important.

Drawing from NNPC 18’s experience, Asaolu said the company had increased its production over the past 12 months through improved operational focus, expanded security arrangements around its assets and appraisal activities extending into deeper horizons.

She also stressed the need for companies to make strategic investment decisions, noting that capital was limited and should be directed towards projects with the strongest prospects.

According to her, oil and gas firms must review their portfolios, discontinue underperforming projects and concentrate resources on opportunities capable of delivering better returns.