AI deployment reducing costs, improving returns — Olatunbosun
The Chief Financial Officer of Midwestern Oil & Gas Company Limited, Mr. Kayode Olatunbosun, has said the deployment of artificial intelligence and other advanced technologies is significantly reducing operational costs
The Chief Financial Officer of Midwestern Oil & Gas Company Limited, Mr. Kayode Olatunbosun, has said the deployment of artificial intelligence and other advanced technologies is significantly reducing operational costs while improving returns on investment for the indigenous energy firm.
Olatunbosun made this known while speaking during a panel discussion at the 9th Nigeria International Energy Summit (NIES 2026), which concluded in Abuja this week.
The summit, themed “Energy for Peace and Prosperity: Securing Our Shared Future,” brought together policymakers, investors, and industry leaders across Africa to deliberate on energy security, financing, and innovation within the sector, with particular focus on strengthening indigenous operators.
Speaking on how Midwestern is integrating technology into its operations, the CFO said the company’s approach is guided strictly by value creation and measurable performance outcomes.
“Our approach is pragmatic and value-accretive. We deploy technology only where it delivers measurable operational and financial outcomes,” Olatunbosun said.
Advertisement
300x250
He explained that one of the major areas where artificial intelligence is driving efficiency is in real-time production monitoring and cost optimisation.
According to him, Midwestern operates an advanced Supervisory Control and Data Acquisition (SCADA) system integrated into an AI-enabled Enterprise Resource Planning (ERP) platform.
“This sustains uptime, reduces production deferment, and optimises unit operating costs. It also improves hydrocarbon accounting accuracy and operational visibility across our operations,” he stated.
Read Also: Ogun to build N1b AI-powered digital classroom at RSS
Olatunbosun further disclosed that the company is leveraging technology in subsurface modelling and seismic data reinterpretation to improve reservoir understanding and reduce financial exposure in new developments.
“In the area of subsurface modelling and seismic reinterpretation, we reprocess legacy seismic data to refine reservoir understanding. This helps us reduce upfront capital expenditure for new projects, extend the economic life of our fields, and improve return on invested capital,” he said.
Advertisement
300x250
He added that Midwestern has also deployed drone technology to strengthen infrastructure security, particularly along its crude evacuation pipeline.
“We deploy drones across our 51-kilometre operated pipeline. This enhances surveillance, reduces theft, and strengthens pipeline integrity management. It has delivered tangible value through improved production assurance,” Olatunbosun noted.
Reflecting on the company’s operational trajectory, the CFO described Midwestern as one of the most successful firms to emerge from Nigeria’s 2003 marginal field programme.
“Midwestern has been around for about two decades. From the class of 2003 marginal field operators, we have drilled over 25 wells and produced more than 60 million barrels of oil,” he said.
He added that the company has developed state-of-the-art infrastructure and continues to enable other producers within its cluster to evacuate crude to export terminals.
Advertisement
300x250
“We also operate a 51-kilometre pipeline that unlocks value not just for us but for other producers in our operating cluster,” he said.
Olatunbosun emphasised that sustaining growth over the last 20 years has required consistent investment in innovation and operational technology.
“For you to have achieved this over two decades, you must have deployed technology deliberately — from AI-enabled performance monitoring systems to subsurface studies that reduce CAPEX, and drone surveillance protecting our pipelines. Technology remains central to our efficiency and value creation,” he added.