Nigeria’s abandoned oil wells may have one more job to do
The end of oil production may not be the end of an oil well's economic value as companies explore new uses for ageing infrastructure
An oil well story in Nigeria usually ends when the oil stops flowing. Once production declined, many were sealed, others abandoned, and most were written off as environmental liabilities with little left to offer. But that story may not be over just yet. That perception is beginning to shift.
Oando Energy Resources‘ latest clean energy initiative plans to pilot a geothermal-style electricity project using abandoned oil wells, turning infrastructure once considered obsolete into a potential source of power.
The idea may sound ambitious, but it reflects a broader shift in the global energy industry. Instead of discarding ageing oil infrastructure, companies are exploring how it can support cleaner energy. For Nigeria, where reliable electricity remains a major constraint on economic growth, the implications could extend far beyond the oil sector.
Giving old infrastructure a new purpose
When an oil well reaches the end of its commercial life, it is permanently sealed through a process known as plugging and abandonment to prevent methane leaks and groundwater contamination.
For years, that marked the end of the story.
Oando plans to repurpose abandoned wells within its joint venture assets to generate geothermal-style electricity as part of its broader clean energy strategy, which also includes gas, solar and hydro.
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Rather than drilling new wells, the pilot seeks to harness underground heat using existing oil infrastructure. If successful, it could reduce development costs while extending the life of assets that would otherwise sit unused.
A business opportunity beneath the surface
The proposal is about more than generating electricity. It is about unlocking new value from infrastructure that has already been built.
As mature oil fields reach the end of their productive lives, operators face the high cost of decommissioning ageing assets. Repurposing some of those wells could instead create opportunities for engineering firms, drilling contractors, environmental consultants and clean energy developers, while attracting investment into Nigeria’s growing energy transition.
Oando already supports the national grid through the 480-megawatt Okpai Independent Power Plant. The geothermal-style pilot signals another step in the company’s effort to expand domestic power generation using existing energy assets.
The opportunity comes with challenges
Not every abandoned oil well is suitable for geothermal-style electricity generation. Each site will require geological studies, technical assessments and regulatory approval before commercial deployment becomes possible.
Still, the announcement represents a change in perspective.
For years, abandoned oil wells have been viewed as environmental liabilities and decommissioning costs. Oando’s proposal suggests they could become productive assets once again.
If the pilot succeeds, the value of an oil well may no longer be defined solely by the crude it produced, but by the electricity it helps generate. In a country where power shortages continue to limit business growth, that could prove to be one of the most valuable transformations yet.
