Nigeria strengthens upstream output as Petralon Energy expands Dawes Island drilling

Petralon Energy is progressing its drilling campaign at the Dawes Island field (PPL 259) in Nigeria, bringing the DI-2 well back online and spudding the DI-3 well as part of efforts to boost near-term output under the country’s Petroleum Industry Act (PIA). 

Following a site visit, Nigeria’s Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, welcomed the company’s activity, saying it reflects the PIA’s intention to drive active development of licensed assets. He reiterated the Act’s “Drill or Drop” mandate, which requires operators to maintain drilling momentum or surrender acreage.

“Petralon Energy represents an example for other licensees to follow,” Lokpobiri said, noting that consistent drilling is essential for Nigeria to progress toward its medium-term target of 2.5 MMbpd.

Petralon has refurbished infrastructure at Dawes Island and restarted production from DI-2, contributing to incremental volumes of roughly 2,500 bpd. The company is among several indigenous operators expanding their role in Nigeria’s onshore and shallow-water sector as international majors continue to divest from legacy assets.

Industry observers say the activity underscores how regulatory clarity and locally led operations can support production growth under the PIA. Petralon has also established Host Community Development Trusts for nearby Ogoloma and Koniama communities, an early compliance step intended to improve project engagement and reduce longstanding social-license risks in the Niger Delta.

While challenges remain across Nigeria’s upstream sector, continued drilling campaigns by indigenous independents are viewed as a key part of the country’s broader Project One Million Barrels initiative and its strategy to stabilize output after years of declines.