Building scalable upstream capacity in Nigeria

Nigeria

Tayo Adeyemi Adiatu, CEO of Tulcan Energy Resources, talks to The Energy Year about the phased ramp-up of the Tom Shot Bank (TSB) field and the funding and infrastructure hurdles indigenous operators face.

Tulcan Energy Resources is a Nigerian upstream company focused on disciplined, scalable oilfield development.

• Tulcan Energy is executing a disciplined, data-driven three-phase development of the TSB field, accelerating infrastructure such as flowlines and pipelines to enable scalable and sustainable production growth.
• The company targets ramp-up from 5,000 to 15,000 bopd by Q4 2026, contingent on expanded evacuation capacity and direct pipeline access to the Qua Iboe Terminal.
• Key challenges for indigenous operators include access to early-stage funding, securing skilled talent and integrating technical partners, all of which Tulcan is addressing to transition into a mid-sized, fully integrated E&P player.

What led to your decision to acquire the TSB and Odimodi oilfields, and how have you approached development?
Tulcan Energy began as a downstream company, but our long-term strategic ambition was always to participate across the full energy value chain, including upstream. The opportunity materialised during the 2020 bid round, culminating in our acquisition of the Tom Shot Bank (TSB) field in 2022, followed by the Odimodi asset in 2023.
Immediately after acquiring TSB, we established Tulcan Energy Exploration and Production Company Limited (Tulcan EPCL) and onboarded an initial team of 12 experienced professionals across subsurface, drilling and reservoir engineering departments. From the outset, our approach was technical, data-driven and disciplined. We engaged Petrovision and RPS to undertake detailed technical evaluations, including the Field Development Plan and Competent Person’s Report. After rigorous analysis and desktop comparisons, we defined an optimised development strategy tailored to the asset’s characteristics.
Working in close collaboration with two external consulting firms and our in-house technical team over a two-year period, we developed a comprehensive three-phase development plan.
Phase one involved drilling two wells back-to-back, targeting initial production of 5,000 bopd. The wells were successfully drilled and completed. However, production start-up was delayed due to storage and evacuation constraints. Rather than adopting a temporary mooring solution, we strategically accelerated part of phase two – constructing flowlines and a dedicated pipeline. While this decision extended our timeline, it positioned us for more sustainable and scalable production.
Pipeline construction was completed in August/September 2025 in partnership with a top-tier EPC contractor. As of February 2026, we are finalising ramp-up to 5,000 bopd, with formal production at that level expected by the end of March 2026.
To date, we have drilled four wells within record time, working with leading IOC service providers such as SLB, Halliburton, Baker Hughes and Brightwaters Energy, alongside reputable indigenous firms such as Spectrum Energy, Panel Parker as well as other marine and vessel owners. The rig was provided by Shelf Drilling. With the completion of two additional wells by March 2026, we are targeting a ramp-up to 10,000 bopd shortly thereafter.

What infrastructure is required to move from 10,000 to 15,000 bopd?
The transition from 10,000 to 15,000 bopd requires incremental infrastructure designed for optimised throughput, operational efficiency and cleaner execution.
The most critical requirement is direct terminal access. While we are currently constrained by the present haulage capacity on the existing pipeline to the Qua Iboe Terminal (QIT), we have already initiated work on another direct pipeline to QIT. Upon completion, this will eliminate evacuation bottlenecks and enable us to optimise production capacity toward 15,000 bopd, which we are targeting by Q4 2026. We will also scale up our production facility to handle above 20,000 bopd.
Our strategy is therefore two-pronged. First, we are optimising production and infrastructure at the TSB field to ensure efficient scale-up. Second, we are preparing to activate our second asset, the Odimodi field in Delta State.
At Odimodi, we are conducting extensive technical studies to fully understand the subsurface and reservoir characteristics. We are currently undertaking passive seismic surveys in collaboration with reputable international firms to further refine our geological and reservoir models. The objective is precise well placement and planning in the most productive zones, ensuring both maximum recovery and long-term sustained production.
We expect to conclude the current data analysis by July 2026, with drilling activities scheduled to commence in August or September 2026.

What are some of the greatest challenges you’ve faced as a growing indigenous operator?
One of the most significant challenges has been recruiting and building the right team. Asset acquisition is only the beginning of the journey; it is execution that determines success. A strong vision must be matched by competent and experienced professionals capable of delivering measurable results. By setting high-performance standards early, we were able to attract and onboard experienced talent quickly. Today, Tulcan has over 50 professionals and experts across multiple disciplines.
Access to funding represents another major hurdle, particularly when working with non-producing assets. Securing local or international financing without established production or fully de-risked assets is extremely challenging. In the early stages, we relied significantly on equity to fund development activities. This allowed us to advance the asset sufficiently to attract appropriate financial support at the right time.
A further challenge lies in aligning with the right technical partners, not just consultants, but collaborators capable of integrating seamlessly with our internal team. When that integration works effectively, it accelerates delivery and enhances outcomes. Our ability to coordinate multiple scopes of work across consultants and internal experts has been central to our progress.
In less than three years, we have achieved significant milestones. This progress reflects a clear vision, disciplined execution and supportive engagement with regulators, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which facilitated technical, commercial and regulatory alignment through various workshops and engagements. Ultimately, our model combines strong in-house expertise with carefully selected external specialists to achieve optimal results.

What are the next key steps as Tulcan transitions from an emerging player to a mid-sized E&P company?
Having achieved our initial milestone of 1,000-5,000 bopd and optimised infrastructure capable of handling 10,000 bopd, our immediate focus is scaling sustainably from 10,000 to 15,000 bopd and beyond. Each stage of growth requires tailored logistics, expanded export capacity and enhanced flowline and pipeline infrastructure.
Simultaneously, we are laying the groundwork to develop our second asset. Following the completion of detailed reservoir studies and subsurface analysis at Odimodi, we will commence drilling using the same disciplined, phased methodology that delivered results at TSB.
Internally, we are strengthening our corporate and operational structures to support scale. This includes refining governance processes, enhancing workforce capability and deepening engagement with regulators and host communities. Our objective is to build a fully integrated upstream organisation that is scalable, compliant, environmentally responsible and commercially resilient.
At the core of our strategy is discipline – discipline in planning, capital allocation and execution. We are building Tulcan as a results-driven upstream company that delivers performance without compromising technical integrity or environmental standards. That remains our long-term value proposition.

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