The Lunch Hour: Kola Karim – Nigeria Should Be Producing 4–5 million Barrels of Oil Per Day

“We saw an opportunity to deepen our participation in oil and gas, and we took it.”

Kola Karim is the Group Managing Director of Shoreline Energy International, a leading energy and infrastructure company in Nigeria. In this conversation with Wole Famurewa, he reflects on his journey from commodities trading to acquiring one of Sub-Saharan Africa’s largest onshore oil fields, his leadership philosophy, and the future of Nigeria’s energy sector.

Early Career and Foundations in Nigeria’s Oil and Gas Industry 

Wole Famurewa: What inspired you to choose the oil and gas industry as your career path?

Kola Karim: Thank you, Wole. My journey has been quite an interesting one. I started my career at Royal Exchange in London, having studied Business Management for my undergraduate degree and later earning a master’s degree in law with a focus on international business law and environmental law.

My foray into commodities trading was influenced by my family. My mother was in the palm kernel export business, and I played a key role in expanding it across Nigeria, particularly in the West and East. This experience gave me deep insights into Nigeria’s rich economic landscape.

With the return of democracy in 1999, Nigeria saw a renewed focus on infrastructure development. Given that the oil and gas industry is the country’s main sources of foreign exchange, transitioning into this sector felt natural. We established Shoreline Energy International, initially focusing on oil and gas trading before branching into broader natural resource investments.

When the government introduced its local content policy in 2004–2005, we saw an opportunity to deepen our participation. We acquired the Nigerian government’s stake in Schlumberger Testing and Production Nigeria, gaining valuable insights into exploration and production. The Niger Delta crisis and subsequent government push for local involvement in the industry further reinforced our decision. In 2011, we partnered with Heritage PLC and won the bid for OML 30, one of Sub-Saharan Africa’s largest onshore fields by reserves. Acquiring OML 30 from Shell, Total, and ENI was a defining moment. The financial scale, close to $1 billion, was unprecedented in Nigeria’s financial services sector at the time. Shoreline Energy’s position in the industry today was established by our ability to raise the funds necessary for OML 30 from both international and local banks.

Lessons from University and Early Career

Wole Famurewa: Let’s go back to your university days. What lessons from that time have influenced your leadership today?
Kola Karim: One of the biggest lessons I learned is the importance of relationships. Building and nurturing connections is essential, even with people who may seem different or challenging. You never know how someone might influence your journey, so keep an open mind always.

Wole Famurewa: Could you share some early career experiences and the lessons they taught you?

Kola Karim: I was fortunate to start my career at Royal Exchange Fund Managers in London. At the time, there were very few young Black professionals in the City of London, making it both a challenging and rewarding experience. I learned the importance of listening attentively, focusing on goals, and being open to different perspectives—lessons that have stayed with me throughout my career.

Nigeria’s Gas and Oil Industry Today 

Wole Famurewa: How do you assess the state of Nigeria’s gas industry today?

Kola Karim: Frankly, Nigeria doesn’t have a fully developed gas industry, which is unfortunate. With 260 trillion cubic feet of gas reserves, we should be a global leader, yet we struggle to complete LNG Train 7 and meet local demand for cooking gas.
The Petroleum Industry Act (PIA) took over 20 years to pass, and now that it’s in place, there should be a master plan to actualize it at full speed. President Tinubu’s recent presidential order for the sector is also a step in the right direction, but execution is key. We must follow through on all these policies.

Gas is a crucial transition fuel, and with global energy shifts, particularly due to the Russia-Ukraine conflict, there is an enormous market opportunity for Nigeria. Nigeria is strategically located just 14 days by sea from Southern Europe, yet we have failed to tap into this huge market. However, it’s not too late to act.

Wole Famurewa: What about the oil industry?

Kola Karim: The oil industry in Nigeria is a true shame. The industry is in decline. We should be producing 4–5 million barrels per day, yet we’re down to 1.4–1.5 million barrels from the height of 2.5 million a decade ago. Aging infrastructure and lack of capital investment are the major issues in the industry.

The global financial shift towards decarbonization means traditional funding sources for fossil fuels are shrinking, which limits our capacity to raise funds to build and maintain necessary infrastructure for the industry. Nigeria needs a strategic approach to securing investment in its oil and gas industry. The industry, which accounts for 89% of our foreign exchange earnings, is too important to be allowed to wither away.

Oil and Gas Sector Policy, Foreign Investment, and Economic Growth

Wole Famurewa: So, the policy environment and leadership are crucial for growth. What changes do you foresee in the near future that could spark the growth we need?

Kola Karim: First and foremost, the presidential order signed by President Bola Ahmed Tinubu is a good step in the right direction. However, execution is key. It’s not just about signing policies; there needs to be a robust monitoring and evaluation system to ensure they achieve their intended impact.

The government should set up a dedicated unit to evaluate the effectiveness of presidential orders and policies. For example, if a directive is issued, there should be a tangible report on its progress within months. Without this kind of accountability, we’ll just keep signing policies with little action.

Wole Famurewa: Reflecting on foreign investors, they’ve been hesitant to return despite the PIA. What factors do you think are deterring foreign investors right now?

Kola Karim: Foreign investors are just like us who have investable capital, they seek opportunities with good returns. Twenty years ago, Nigeria was one of the few major oil-producing nations in Africa, alongside Angola, Algeria, and Libya. Now, countries like Ghana, Senegal, Mozambique, and Namibia have joined the fold.

Investors now have options, and safety, stability, and an enabling environment are critical for attracting their capital. Unfortunately, we often amplify negative narratives about ourselves, which discourages investment. We need to change this mindset and create a positive image of our country.

Technology and the Oil and Gas Industry

Wole Famurewa: How is technology transforming oil and gas, and what emerging trends do you see shaping the future of gas and oil production?

Kola Karim: Innovation is everywhere in oil and gas. At the Schlumberger annual conference in Monaco, we saw groundbreaking advancements like automated directional drilling and well performance simulations. These technologies optimize production and efficiency.

For innovations to thrive in Nigeria, a secure and stable environment is necessary. Nigeria is fortunate because it does not require deep drilling to access oil or gas. The main issue in Nigeria is more about above-ground risks than below-ground risks since the resources are present. Above-ground risks include pipeline breaches that are way too prevalent in Nigeria. The security challenges in the Nigerian oil and gas industry are substantial and Nigeria cannot see progress in the industry without addressing these issues.

Wole Famurewa: How can Nigeria’s oil and gas industry align with global sustainability goals? This is a significant concern, especially for funders.

Sustainability in the Oil and Gas Industry

Kola Karim:  Sustainability is important and should be a priority for decision-makers in the sector. Technology is continually enhancing the performance of the oil and gas sector. For context, gas is considered a transition fuel. Nigeria has large gas reserves, and directing capital toward improving gas production and the value chain is highly beneficial.

To put this into perspective, Russia exported natural gas worth half a billion dollars per day to Europe through Nord Stream 1 and Nord Stream 2. If Nigeria fully developed its gas reserves, along with the AKK pipeline to the north, the Trans-Sahara pipeline, and the West African route via Morocco to Europe, Nigeria could potentially earn $30 to $500 million daily from natural gas.  That could place Nigeria in a completely different economic league. What’s required is decisive leadership committed to turning this vision into reality.

Nigeria is not a wealthy country. We are a big country with vast natural resources, but we are poor when you look at our total annual budget compared to smaller countries. For comparison, Nigeria’s total budget is $30 billion, while South Africa’s is $100 billion, despite having a far smaller population. There is significant potential for Nigeria’s economy to grow into a $1.5 to $3 trillion economy, similar to India’s transformation over 25 years from a similar financial base. Nigeria has the necessary resources, brainpower, and population. What is needed is effective leadership to integrate these elements.

We often get caught up in distractions that hinder progress. Look at the UAE, it didn’t become an economic powerhouse by fixating on who benefited from contracts. They prioritized execution: roads, bridges, metros, airports, all built with a singular focus on development. The real question should be: was the infrastructure delivered at the highest standard? If so, the broader economic and social benefits far outweigh the noise around contract margins.

This is the mindset shift Nigeria needs—one that prioritizes execution, long-term economic value, and the well-being of its people. That’s how we align with global sustainability goals and position Nigeria as a formidable player in the energy transition.

Shoreline Energy’s Strategy

Wole Famurewa: Let’s discuss Shoreline Energy’s strategy. What differentiates your company in the highly competitive oil and gas sector?

Kola Karim: Our focus is on being in the core sectors of any developing society. Shoreline Group is deeply involved in infrastructure, partnering with the largest and most capable players to build large-scale projects. Our second focus is on core of the Nigerian economy: oil and gas. We are intensifying our efforts in drilling for oil and gas, while also expanding our business to include gas processing and distribution. The final pillar of our strategy is engineering services.

To achieve success in these areas, we take advantage of advanced technology and robust capabilities. Shoreline Group brings these strengths to the table, aiming to deliver value to our communities and build a sustainable, future-proof company. In the oil and gas sector, our goal remains to continue exploring and exploiting oil and natural gas, ensuring these resources reach the market efficiently.

Wole Famurewa: What do you value most when hiring at Shoreline?

Kola Karim: Independent thinking and shared values. I observe people closely and ensure their principles align with ours. If they don’t, they’re not the right fit for us.

Wole Famurewa: Could you share some of your milestone success stories?

Kola Karim: If you ask me what keeps me awake at night, it’s my wife, my family, and the Halo Scholarship we have established. The Halo Scholarship sponsors exceptionally smart, articulate, and intelligent young Black students, enabling them to attend top universities like Oxford and Cambridge. This initiative is one of the most significant aspects of my life. We are also replicating this effort in Nigeria, sponsoring these talented individuals and sharing our knowledge and blessings.

Equally important is our commitment to driving excellence and creating jobs. Job creation is a core value we hold dear. Consider the examples of India and China—what drives their economies? It’s the job creators and enablers. Entrepreneurs like us are the ones who create jobs, employ others, and contribute to government revenues through taxes, which in turn support development.

In the oil and gas sector, we explore and exploit oil, sell it, pay taxes, and royalties, thereby enabling the government to finance social enterprises. The true measure of any successful society is how it treats its entrepreneurs. India’s growth is driven by its industrial output, and the same can be said for China, the U.S., and every OECD country. Entrepreneurs are the enablers and drivers of economies, making a significant difference.

Personal Life, Influences, Leisure

Wole Famurewa: Who has had the most significant influence on your professional life, and why?

Kola Karim: There have been many influential people, but I prefer to keep their identities private. What I would tell you is that they all have one common denominator which is they have been extremely successful in their own right, but they have also been extremely truthful with me about their journeys. More importantly, they have always made time for me whenever I reached out to discuss issues, whether good or bad. If you can connect those dots and surround yourself with such people, you can make significant headway.

Wole Famurewa: You mentioned your mother earlier. What role has she played in your professional journey?

Kola Karim: My mother has been the cornerstone of my existence, and by extension, the foundation for my wife and family. Her principles and beliefs have always revolved around her children, and that has been her unwavering stance. This is crucial because much of our success today is largely due to her. Her role as a mother and a pillar, ensuring we are well-provided for, has been fundamental. I draw immense inspiration from her, and I hold it sacred. This same inspiration is what I pass on to my children, my family, and my extended family, including my wife. It’s essential because you need that pillar to support you. Life is unpredictable and challenging, and when it throws curveballs, you need stability. Having constants around you provides reliability, and that’s incredibly important.

Wole Famurewa: Let’s talk about life beyond work. What type of music do you enjoy? Who are your favorite authors?

Kola Karim: I read a lot of biographies that interest me, like those of Nelson Mandela, Barack Obama, Hillary Clinton, and Warren Buffett. It’s always intriguing to understand how people have built themselves up to where they are today.

When it comes to music, I am agnostic; I listen to anything and everything, from classical to Afro pop. However, my latest discovery, which I only stumbled upon during the pandemic, is Netflix. Before the pandemic, I never used it as I wasn’t attentive enough to watch TV. But during the lockdown, I found myself glued to it, needing something to do, and now I’ve discovered a fantastic passion. I’m hooked on it and even download movies now. It’s been an interesting and relaxing experience.

Polo has also been part of our DNA; it’s always been cool. Horses are beautiful animals to look at, ride, and play polo with, and the whole ambiance around it is always very interesting.

Wole Famurewa: No doubt your work has you flying across the world. So, let’s talk a bit about your favorite destinations.

Kola Karim: In Nigeria, it’s Ibadan because I’m from there. It’s the largest city in West Africa and an amazing town with a lot of cultural immersion. I always sit back, drive through the city, and I’m happy. For me, that’s an amazing feat. I was humbled when I was titled the Agbaoye of Ibadanland. The title has bestowed on me even more involvement in the city and the state.

Globally, there’s nothing that beats the western Mediterranean. Starting from Monaco and going that way in the summer, the weather is amazing, the food is great, and the ambiance is fantastic. From France to Italy and Spain, it’s always beautiful, a truly great experience.

Wole Famurewa: Finally, let’s talk about work-life balance. How do you manage to achieve that, especially post-pandemic, where technology enables meetings like this to happen virtually?

Kola Karim: I find that I think better when I’m on a flight without Wi-Fi, as it allows me to escape and focus. This form of escapism works well for me. However, I strive to maintain balance. When traveling, I plan my rest time and work time, while also ensuring I enjoy time with my family. This balance helps me feel good both physically and mentally, as being an entrepreneur is not easy. The good, the bad, and the ugly all rest with you.

To be a leader, you need a strong mindset to see things through and push forward to achieve your goals. At the end of the day, whether you win or lose, you’re the one responsible. That’s why we always work to sharpen our minds, stay alert, and maintain a strong drive in our leadership of our company.

 

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