The Nigerian National Petroleum Company Limited (NNPC Ltd), through its Research, Technology and Innovation (RTI) Division, in collaboration with the Petroleum Technology Development Fund (PTDF), has signed a Memorandum of Understanding (MoU) with Sonatrach, the Algerian National Oil Company, for cooperation in research, development, and innovation.

The agreement, signed by NNPC Ltd’s Executive Vice President, Business Services, Sophia Mbakwe, and Sonatrach’s Managing Director, Khodjah Mohamed, establishes a formal framework for joint work in research and technology exchange between the two national oil companies.

This was contained in the press statement issued on Thursday by Chief Corporate Communications Officer Mr. Andy Odeh.

According to the statement, the agreement, held during the opening ceremony of the 3rd Meeting of the African Petroleum Producers’ Organization (APPO) Forum for R&D Directors at the PTDF Tower in Abuja, Nigeria, brought together research and development directors from APPO member countries.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, represented by former Secretary General of APPO, Omar Farouk Ibrahim, said the forum was one of four measures introduced by APPO to address challenges from the global energy transition, which center on funding, technology, and markets.

“The R&D forum tackles technology and expertise needs, the African Energy Bank addresses funding constraints, and the Central African Pipeline System supports regional oil and gas market integration,” Lokpobiri stated.

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Earlier in his remarks, Group Chief Executive Officer, NNPC Limited, Engr. Bashir Bayo Ojulari, represented by the Company’s Chief Financial Officer, Adedapo Segun, said research and development must form a central part of the overall strategy in the African oil and gas industry.

He called for research and development centres to function as engines of industrial competitiveness. “Collaboration in research and development is of strategic importance. The cost of innovation might be high, but the cost of obsolescence would be greater,” he stressed.

Ojulari called for a unified strategic framework through which resources could be pooled, data integrated, and risks shared across member countries.

He further urged the rapid adoption of digital technologies, artificial intelligence, and advanced engineering to improve upstream, midstream, and downstream operations.

On his part, the APPO Secretary General, Farid Ghezali, urged African petroleum-producing countries to ensure research in the oil and gas sector produced solutions that are practical and directly relevant to the continent. “We must ensure that our research delivers solutions that are practical and of direct use to Africa,” he stated.

Also speaking, the Executive Secretary of the Petroleum Technology Development Fund (PTDF), Prof. Shu’aibu Shehu Aliyu, highlighted the value of the partnership between NNPC Limited and PTDF in supporting decarbonization and environmental protection efforts across APPO member countries.

Chief Innovation Officer of NNPC Research, Technology and Innovation and incoming Chairman of the APPO R&D Directors Forum, Rasheed Ojulari, said the forum would give immediate priority to joint programs in the core areas of upstream optimization, artificial intelligence, decarbonisation processes, and industrial systems development.

The Nigerian Gas Association (NGA), has opined that a predictable fiscal and regulatory environment are ingredients essential to de-risking investments and accelerating project delivery in the oil and gas sector.

This was detailed in a statement released by NGA at the end of its maiden Legal Forum emphasised that investor confidence will be shaped by the robustness of commercial and contractual structures across the gas value chain, strengthened contractual clarity, and efficient dispute resolution mechanisms.

In his opening address, President of the NGA, Aka Nwokedi, underscored the urgency of aligning Nigeria’s legal architecture with its strategic gas ambitions, noting that the sector’s next phase of growth will be defined by the strength, clarity, and credibility of its regulatory environment.

“Nigeria’s gas resources present a defining opportunity for economic transformation, but realising this potential will depend on building a legal framework that is transparent, predictable, and globally competitive”, he stated.

Discussions throughout the Forum reflected a clear and consistent theme: that Nigeria’s opportunity now lies in execution.

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While the Petroleum Industry Act (PIA) has established a transformative foundation for sector reform, participants emphasised that its true impact will be determined by disciplined implementation, regulatory coherence, and institutional alignment.

The need to eliminate ambiguity and strengthen enforcement emerged as central to unlocking sustained investment.

As global energy systems continue to evolve, the Forum reinforced natural gas as Nigeria’s most strategic lever for balancing economic growth, energy security, and emissions reduction. Participants highlighted that legal and regulatory frameworks must evolve accordingly, moving beyond policy intent to embed clear, enforceable standards on carbon management, ESG obligations, and sustainability.

“In an increasingly competitive global market, such clarity will be critical in attracting long-term capital.”

The Forum also acknowledged the policy direction of the administration of President Bola Ahmed Tinubu in advancing gas development through infrastructure expansion and increased domestic utilisation.

Stakeholders noted that sustained policy stability will serve as a critical signal to both domestic and international investors evaluating long-term opportunities in Nigeria’s gas sector.

Beyond its technical depth, the NGA Legal Forum marked an important step in bridging the longstanding gap between legal frameworks and industry realities, creating a structured platform for continuous engagement, practical alignment, and forward-looking policy development.

The International Energy Agency (IEA) is of the view that the current Middle East crisis has destabilised global oil markets.

It pointed out that the ugly incident has cut demand expectations and triggered what it described as the most severe supply shock in history.

This was set out in its latest Oil Market Report, in which it asserted that the global oil demand is now projected to contract by 80,000 barrels per day in 2026, a sharp reversal from last month’s forecast growth of 730,000 bpd.

It added that a projected 1.5 million barrels per day drop in Q2 2026 would mark the steepest quarterly decline since the COVID-19 pandemic.

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According to the IEA, early demand destruction is already visible in the Middle East and Asia-Pacific, where consumption of naphtha, LPG and jet fuel has fallen sharply. It attributed this to rising prices, scarcity of supplies, and weakening industrial and aviation activity.

It pointed out that on the supply side, global oil output plunged by 10.1 mbpd in March to 97 mbpd, as continued attacks on energy infrastructure and restrictions in the Strait of Hormuz disrupted exports. OPEC+ production reportedly fell by 9.4 mbpd, while non-OPEC supply also weakened despite gains in the United States and Brazil.

The crisis, it was learnt, has also hit refining operations, with global crude throughputs constrained by feedstock shortages and damaged infrastructure. The IEA said refineries in the Middle East and Asia reportedly cut runs by around six mbpd, while global crude processing is now expected to decline by one mbpd on average in 2026.

Prices have also surged to historic levels, with Brent crude trading around $100 per barrel and physical crude briefly touching $150 per barrel, as refiners scramble for alternative supplies. Middle distillates in Asia reached record highs above $290 per barrel, reflecting extreme tightness in product markets, according to the report.

Inventories were said to have fallen sharply, with global observed stocks dropping by 85 million barrels in March. The IEA said supply routes through the Strait of Hormuz have been severely disrupted, cutting flows from over 20 mbpd before the conflict to about 3.8 mbpd.

While some exports have been rerouted through Saudi Arabia, the UAE, and Iraq–Türkiye pipelines, these alternatives have not offset losses exceeding 13 mbpd, the agency said, adding that floating storage has increased in the Middle East as stranded cargoes build up offshore.

The IEA stressed that restoring full flows through the Strait of Hormuz remains the most critical factor in stabilising global energy markets, warning that prolonged disruption could deepen the supply shock, worsen inflationary pressures, and further weaken global oil demand.