AI in oil and gas

In Lagos, a quiet shift is reshaping Nigeria’s energy frontier. Firms are layering AI analytics, drone-enabled inspection, and integrated data platforms to cut costs and boost safety across oil and gas operations.

Industry experts say the next phase of efficiency will hinge on how well AI in oil and gas is embedded into daily operations. Folarin Banigbe, CEO of CPAAT Consulting, described a convergence of CIOs, CTOs, regulators and innovators who will move digital conversations from theory to action during the inaugural CPAAT CIO Retreat 2025 in Lagos. This gathering aims to turn talk into tangible results that strengthen Nigeria’s energy sector.

AI in oil and gas can transform many parts of the value chain. Banigbe notes that AI can analyze data in four and even five dimensions, helping engineers predict equipment failures, optimize drilling, and reduce waste. Sensors on pipelines can detect minute drops in pressure, enabling operators to respond quickly before small issues become costly disasters. Such smart technologies would not only boost profitability but also advance sustainability across the energy value chain.

According to BusinessDay Nigeria, the energy sector’s resilience depends on how well it integrates artificial intelligence, automation, and predictive analytics into day-to-day operations. The CIO Retreat is positioned as a platform for collaboration rather than competition, encouraging leaders to share practical strategies for digital transformation and to build a more resilient oil and gas ecosystem.

Nigeria’s oil and gas industry faces steep operational costs. Banigbe noted that drilling a single well can cost onshore around $10 million and offshore well costs can exceed $40 million. He argues predictive analytics, drone monitoring, and advanced data integration could dramatically lower these costs without requiring massive new investments. The idea is to reuse and extend existing assets through smarter, data-driven management, much like the telecom sector’s success with shared infrastructure models.

The inaugural CPAAT CIO Retreat 2025 will run November 7–9 in Lagos, bringing together CIOs from major oil and gas firms, regulators, technology innovators, and enterprise partners shaping Africa’s digital economy. Banigbe emphasizes a practical focus: the event should move beyond declarations to real collaboration, helping CIOs exchange experiences and co-create actionable solutions. “Our aim is to foster a community of CIOs who will not just enable digital transformation, but lead it,” he said. This leadership mindset signals a broader shift toward faster, more coordinated adoption of smart tech in energy value chains.

Kayode Mustapha, CEO of Gididrone Services, highlights the growing role of drone intelligence and local technology partnerships in oilfield operations. He notes that drones are already used for facility inspection, perimeter security, and environmental monitoring. By pairing drone intelligence with local software development, Nigeria can tailor solutions to its unique challenges while training homegrown talent. The emphasis on localized capabilities is a deliberate stance against outsourcing everything overseas, aiming for a stronger, self-reliant energy tech ecosystem.

For readers outside the industry, the core takeaway is simple: AI in oil and gas is moving from concept to everyday practice. The combination of AI analytics, drone-enabled oversight, and shared digital infrastructure has the potential to lower costs, improve safety, and speed up decision making. In practical terms, operators can expect faster detection of anomalies, more precise drilling, and safer maintenance schedules. For regulators and investors, the trend points to the need for clear data governance and robust cybersecurity to protect these digital workflows.

In the broader context, Nigeria’s push mirrors a global move toward digital oilfields where real-time data informs every choice. The emphasis on homegrown capabilities aligns with a trend toward local innovation that can scale across Africa. The message to industry players is clear: embrace the data-driven playbook or risk losing ground to more proactive operators who leverage AI in oil and gas to outpace rivals.

Smart infrastructure, shared data, shared costs

The future of Nigeria’s energy sector will depend on how quickly firms adopt common digital standards and share critical insights. When data becomes a shared asset, it lowers barriers to implementing advanced analytics, improves interoperability between tools, and reduces duplicate investment. The CIO Retreat framework encourages leaders to agree on benchmarks, data governance, and best practices that the entire sector can adopt. This collective approach could unlock billions in capital efficiency and create a more resilient supply chain for Nigeria’s energy needs.

Drones and local talent unlock homegrown tech

Drones are a practical example of how technology can be domesticated for local use. By combining drone platforms with locally developed software, Nigeria can tailor inspections, surveillance, and environmental monitoring to its specific landscapes and regulatory requirements. Mustapha argues that cultivating homegrown expertise will accelerate the adoption of emerging technologies across Nigeria’s industrial landscape, delivering tangible improvements in safety and efficiency.

Conclusion

AI in oil and gas is poised to redefine how Nigeria manages its most valuable assets. The convergence of AI, drone data, and integrated analytics offers a path to lower costs, safer operations, and a more sustainable energy future. By prioritizing shared digital infrastructure and local talent, Nigeria can transform a historically costly industry into a model of digital efficiency. For regulators and operators alike, the signal is strong: invest in smart tech, align on standards, and collaborate to turn digital ambition into tangible results.