This paper set out to measure the operationalperformance of Nigeria National Oil Company (NNPC) in economic value creation from Nigeria’s endowment of hydro-carbon. To achieve this goal, the conceptual model of value creation in the hydrocarbon based on the work of Tordo, Tracy and Arfaa, (2011) was adapted. Trend, descriptive analysis and correlation analysis were carried out. In addition, regression analyses were estimated employing Autoregressive Distributed Lag Model, ARDL. The major finding of the study is that the hypothesis that the operating performance is not creating value in Nigeria’s hydrocarbon sector was accepted. Thus the operating, performance of Nigeria’s hydrocarbon is suboptimal. This was indicated by the negative signs of most of the current and lag of the value drivers. In addition, it is evident that save for geology most of the value driver coefficient are below the average of 50 point further buttressing suboptimal performance. Based on the summary of research findings the study recommended that there is need to provide the relevant knowledge, tools, techniques, policy framework and concepts that can be used to accurately analyze and design as well as optimize petroleuminvestment decisions and projects which usually cover field development and exploration projects. Policy reformers should focus on making incremental but sustainable improvements in technical and institutional capacity. In general, NOCs that are wholly owned by the state tend to have larger national missions objectives and fewer incentives to improve efficiency than partially privatized NOCs. Hence there is need to partially privatized Nigeria NOC.