Driving down cost per barrel through innovation

Nigeria

Akintunde Fadare, COO of Geoplex Drillteq, talks to The Energy Year about the company’s entry into shallow-water oil production through a new field agreement and how it is leveraging technology partnerships to cut costs. Geoplex Drillteq is an integrated oilfield services company providing drilling, completions and production solutions across Nigeria.

What have been the key developments at Geoplex in recent months?
We’ve experienced tremendous growth. Since we last spoke [in February 2025], we’ve signed a Financial and Technical Services Agreement (FTSA) for a very promising field in Nigeria. It’s in what we call a swamp area – very shallow water, not quite onshore and not offshore either. That FTSA aligns perfectly with our growth strategy.
We are targeting first oil by Q1 2026. That’s significant not only in terms of expected cashflow but also for how it will impact our operations. It opens up new opportunities for our personnel, enhances equipment utilisation and strengthens our relationships with key partners. It’s a big milestone, and we are now preparing to mobilise and start production.

How are you financing this next phase of your expansion?
We are fortunate to have a strong financial base to kick-start the project. However, the scale of work we are planning requires more substantial funding. That’s why we’ve engaged in discussions with financial institutions and potential investors. We’re open to partnerships that can support us financially and also bring technical expertise to the table.
Our model is attractive to investors because it’s not just about funding a field – it’s about unlocking significant value with a clear line of sight to production. The support we’re looking for includes both capital and technology, and we’ve already seen interest from credible sources who see the long-term potential.

How are you leveraging technology to improve efficiency and reduce cost per barrel?
Technology is key to our goal of drastically reducing the cost per barrel. The field we’re developing has substantial volumes of both oil and gas. One advantage is its proximity to what we refer to as a moribund field near the NLNG terminals in Ondo State. That offers us a unique opportunity to optimise gas production and potentially supply feedstock to NLNG.
We’re currently in talks with ExproTECH to use advanced technologies to produce that gas and make it field ready. This means the gas will be cleaned and purified so it will not harm NLNG’s equipment and can be turned into LNG safely and efficiently. We’re also collaborating with Halliburton and Baker Hughes on how to complete the wells for multi-zone production, enabling us to optimise output. Additionally, we’re working with NOV to explore the most efficient development approaches for this field.
Beyond production, we’re also evaluating technologies that will enhance our service delivery. Every angle we explore is focused on efficiency and cost reduction without compromising performance.

What challenges are there in terms of rig availability in Nigeria?
Rig availability is a real challenge, particularly for marginal field operators with limited well inventory. Many of them struggle to access offshore rigs, which are expensive and in short supply. Our solution gives them access to land rigs that can operate in shallow offshore environments.
This expands the rig pool at a lower cost. Our rigs can operate in depths as shallow as 1.5 metres and as deep as 60 metres. That means better access for operators and improved utilisation for us. It’s a win-win that helps address the current scarcity and aligns with our long-term growth model.

How does owning your own rigs and equipment give you a competitive edge?
Owning our assets is central to how we differentiate ourselves. It allows us to accept projects that many of our competitors can’t take on, especially turnkey contracts. We’ve successfully delivered wells in record time, even with clients facing cashflow issues.
Because we own the equipment, we can absorb some of the costs during delays or unexpected challenges. For example, on one project, a client needed 10 days to make a sidetrack decision. We were able to halt the rig at almost zero cost during that time. A company using rented equipment could never afford that kind of flexibility.
It also allows us to lead on pricing. Our rigs don’t sit idle – if they’re not in use, we can redeploy them quickly, offering attractive rates while still remaining profitable. That approach also helps us develop human capital – keeping equipment in the field means our crews stay engaged, trained, and productive.

What should we expect from Geoplex in the next year?
More growth. The FTSA project alone is expected to quadruple our revenue. We’re also bringing in what may be Africa’s most advanced land rig – Rig 727 – by December 2025. It’s a brand-new, cyber-controlled, 3,000-hp rig, and it’s already booked for multiple clients. It will first go to TotalEnergies’ Ubeta field, one of the most technically challenging land wells in Nigeria. We anticipate it will stay busy.
Meanwhile, our other land rigs are drilling turnkey projects efficiently, not just renting out equipment but delivering full well services. Over the next five years, we see potential to grow five- to tenfold in terms of manpower, revenue and value delivered to clients and partners. We’re building not just volume, but capability – and preparing our team and systems for that scale.

Read our latest insights on:

• Nigeria