Since 2024, ownership of a large share of Nigeria's onshore and shallow-water oil and gas has moved from international oil companies to Nigerian operators. Oando completed its acquisition of Eni's Nigerian Agip Oil Company in August 2024, Chappal Energies its deal with Equinor in November 2024 and Seplat its acquisition of ExxonMobil's Mobil Producing Nigeria in December 2024 (S&P Global). In March 2025 Shell completed the sale of its onshore subsidiary to Renaissance Africa Energy, a consortium of four Nigerian exploration and production companies and an international energy group (Enerdata).
Completing a deal is the start, not the finish. The new owner inherits fields, facilities, people, contracts and systems that were built to run inside a global company. Turning that ownership into performance depends on a handful of operating-model decisions, made in the right order.
From ownership to operation
On day one, most acquired businesses run much as they did before, often supported by the seller through transition services agreements. That buys time, but it is temporary and usually expensive. Within months, the new owner has to stand on its own: its own organisation, its own systems, its own data and its own way of managing contractors and communities.
The risk is trying to change everything at once, or changing nothing until the transition services end. Both put production, safety and cash at risk.
Five decisions in the first year
1. The operating model and organisation
What should be run centrally and what by each asset? Which decisions sit with the board, the executive team and asset managers? How do technical, commercial and support functions fit together?
An operating model designed around the new owner's strategy and scale, rather than a copy of the seller's global structure, is the foundation for everything else. It should be explicit about decision rights, reporting lines and how performance is managed.
2. Exiting transition services
Transition services agreements cover finance, procurement, IT, HR and sometimes technical support. Each needs an exit plan: what replaces it, who builds the replacement, how it is tested and when it switches over. Exits that slip often become the most expensive part of an acquisition.
Map every service, its cost, its end date and its dependencies early, then sequence the exits so that critical services are replaced first and with the most testing.
3. Systems: keep, replace or rebuild
Inherited systems are often licensed to the seller, integrated with its global platforms or built for a far larger organisation. For each system, decide whether to take it over, replace it with something sized for the new business, or rebuild the capability another way.
Prioritise the systems that touch production reporting, maintenance, finance and regulatory submissions. Everything else can usually follow.
4. Data and reporting foundations
Production, reservoir, maintenance, cost and contract data may be split between the seller's systems, contractors' records and spreadsheets. The new owner needs a reliable picture quickly: for the board, for partners, for lenders and for the regulator.
Agree the handful of measures that matter most, identify where each comes from and build a single, trusted source for them. Better data also makes later improvements, from maintenance planning to cost control, possible.
5. Contractors and the supply chain
Much of the work on acquired assets is done by contractors. Contracts may have been negotiated by the seller, on its terms and at its scale. Review the major contracts, decide which to keep, renegotiate or retender, and put in place the contract management capability to hold suppliers to performance.
Sequencing the change
Not everything can or should happen in the first year. A practical sequence looks like this:
- Stabilise: protect safe production, secure critical services and agree the immediate measures the leadership team will track.
- Separate: design the operating model, plan the transition-service exits and decide the systems path.
- Improve: once the business is standing on its own, use the new data and structure to drive cost, uptime and growth.
This mirrors the three stages we use in every engagement: Define, Transform and Accelerate. It also keeps the organisation focused. Each stage has a clear purpose and a clear point at which it is done.
The people side
Acquisitions change who people report to, how they work and sometimes whether their role continues. Staff transferring from the seller may be used to different systems, processes and ways of making decisions. Clear communication, early involvement of key people and a deliberate plan for culture and capability make a measurable difference to how quickly the new business performs. Our change management work covers this.
How we help
We help energy companies build the operating models, processes, systems and data foundations that turn ownership into performance. Our work typically starts with a Transformation Blueprint that sets out the target operating model, the transition-service exit plan and the systems roadmap, and continues through implementation.
If you are taking on new assets, talk to us or read more about our work in energy.
Sources
- S&P Global Commodity Insights, "Nigeria's Seplat completes acquisition of ExxonMobil oil assets" (12 December 2024): spglobal.com
- Nairametrics, "Seplat Energy completes acquisition of Mobil Nigeria from ExxonMobil" (12 December 2024): nairametrics.com
- Enerdata, "Shell completes sale of oil and gas assets in Nigeria to Renaissance" (March 2025): enerdata.net