The Nation Newspaper

Tag: Nigeria’s oil

  • Nigeria’s oil production soared by 70 % in four years

    Nigeria’s oil production soared by 70 % in four years

    • Eyes $2.5b from gas flare commercialisation

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday said the country’s crude oil production increased by 70 per cent from 2021 to date.

    Its Chief Executive Officer, Engr. Gbenga Komolafe made this known at the ongoing 2025 Nigerian International Energy Summit (NIES) in Abuja.

    Komolafe said through the Nigeria Gas Flare Commercialization Programme (NGFCP), approximately $2.5 billion in investment will potentially be unlocked, generating huge revenue, and creating significant number of jobs.

    The theme of this session was: “Transformative Deals and Nigeria’s Upstream Future”.

    “Yet, sustaining and production increased by 70per cent from 1 million bopd in 2021 to the current production of circa 1.75 million bopd,” he said.

    He said the Nigerian oil and gas industry is the heartbeat of the economy contributing 95 per cent of foreign exchange (forex) earnings and 70 per cent to government revenue, unlocking employment opportunities, and positioning Nigeria as a formidable leader in the global energy arena.

    On optimizing production and bridging the gap, Komolafe said Nigeria’s vast oil reserves present a remarkable opportunity for growth and economic transformation.

    The NUPRC boss said while there is average 1.75 million barrels per day, the country has 2.24 mb/d technical potential.

     “While our current production averages circa 1.75 million barrels per day, our technical potential is 2.24 million barrels per day,” he said.

    The Commission, according to him, is working assiduously to bridge the gap between the actual production and the potential through actions aimed at improving transparency, driving collaboration with Exploration & Production companies, ensuring financial viability, fast-tracking field developments,  adopting cutting-edge improved oil recovery technologies, reducing costs, eliminating entry barriersand optimizing production.

    He said the potential for increased production is immense, and NUPRC is committed to unlocking every opportunity.

    Read Also: NUPRC: Crude oil production soars by 70 percent

    Komolafe said efforts at reactivating shut-in wells and leverage low hanging fruit opportunities will lead to the accomplishment of 1 mb/d.

    “Our efforts to reactivate shut-in wells and leverage low hanging  fruits opportunities will bring us closer to actualisation of the Project 1MMbopd additional production target recently launched by the Commission,” he said.

    Komolafe said in pursuit of the goal to reach 40 billion barrels of oil and 220 trillion cubic feet of gas, NUPRC has vigorously pursued strategies to stimulate exploration activities and accelerate development.

     As part of these efforts, he recalled the Commission successfully completed the 2022/2024 bid licensing round, and awarded 27 Petroleum Prospecting Licenses (PPLs) across various terrains. He added that efforts are also on for the 2025 bid round, embracing a new paradigm of annual licensing rounds.

    He said the Commission has deliberately been acquiring high-quality geological and geophysical data through multi-client service arrangements.

    He said the Commission also ensures access to the data for enhanced value especially during licensing rounds and other transformative deals.

    According to him, the proactive approach empowers informed decision making and fuels strategic investments that will shape the future of Nigeria’s oil and gas sector for shared prosperity.

    He said NUPRC is steadily progressing actions on Advanced Cargo Declaration Solution and Engineering Audit of Upstream Measurement Equipment and Facilities as part of the non-kinetic approach to combat crude theft, eliminate revenue leakage and maximize value.

    He said there have been deliberate efforts at social inclusiveness for enhancing host community development.

    He said NUPRC’s commitment to shared prosperity is demonstrated in its effective implementation of the Host Community Development Trusts (HCDTs) provisions of the PIA 2021.

    Continuing, he said “With 154 HCDTs registered and over N78.8 billion and $122 million contributed to the fund, we are steering tangible change, resulting in 198 ongoing projects in host communities and enhanced peace and economic growth in resource rich regions.”

  • Nigeria’s oil fields, regulatory framework, is investors’ delight, says Komolafe

    Nigeria’s oil fields, regulatory framework, is investors’ delight, says Komolafe

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Commission Chief Executive (CCE), Gbenga Komolafe, an engineer, has reiterated the vast opportunities inherent in the 2024 oil licensing round, saying it offers investors a significant opportunity to contribute to and benefit from Nigeria’s long-term energy growth.

    These opportunities, he noted, are hinged on a combination of robust natural resources, competitive regulatory framework and strategic incentives already put in place by the government, which is said has created a favourable environment for investors. Besides, he added that the country’s commitment to ensuring transparency, social inclusion, and sustainable development further signals a new era of certainty in the nation’s oil and gas industry.

    Komolafe, while addressing participants at the just concluded Africa Oil Week (AOW) Conference which ended in Cape Town, South Africa, at the weekend, informed that the licensing round features more than 31 oil blocks and is supported by a strong regulatory framework under the Petroleum Industry Act (PIA).

    “Nigeria boasts vast untapped potential, including 209.26 trillion cubic feet (TCF) of natural gas reserves, 37.5 billion barrels of crude oil reserves and an oil production capacity of 2.4 million barrels per day (bopd),’ he said.

    According to the CCE, in keeping with the provisions of the PIA, the Commission introduced comprehensive reforms and developed a regulatory framework aimed at modernising the licensing processes, enhancing stakeholder engagement and ensuring environmental sustainability.

    The aim, he added, is to attract both local and international investments that will drive growth and innovation.

    “We have issued a licensing round guideline and published a licensing round plan for the blocks on offer. The licensing round features several blocks selected across varied geological terrains- from the promising onshore basins to the lucrative continental shelves and the unexploited depths of our deep offshore basins”, he revealed.

    He said that to facilitate a smooth licensing process, the NUPRC has outlined a clear roadmap for interested investors which includes prequalification process where companies had to demonstrate technical and financial capabilities, technical and commercial bid submission, evaluation of bids and bid conference, award of licenses or leases and periodic assessments of awardees, or post-award. Besides, he explained that it was pertinent to note that registration and submission of pre-qualification documents have been concluded, a pre-bid conference has been held, and evaluation of submissions and notification of the pre-qualified have also been carried out. All these, he noted, were done in accordance with the stipulated schedule.

    Nigeria, Komolafe revealed, currently has only active rigs, a figure the Commission aims to increase as it offers access to new blocks and modernises the regulatory framework.  He like key advantages that facilitate oil and gas production and export in the country includes her population of approximately 207 million, with 853 km of coastline; 49 producing companies, 251 fields in production, 2,717 Oil-producing strings and 125 gas wells already operational, the sector is primed for expansion.

    Read Also: Shelve your ambition, join Tinubu to move Nigeria forward, MKO Abiola’s ally urges Atiku, Obi

    He told the audience that Nigeria’s upstream petroleum sector remains active and full of opportunities, as six additional refineries with a combined capacity of more than 650,000 barrels per day are expected to support increased domestic refining activities, reducing reliance on imported petroleum products.

    On Presidential Executive Orders and industry reforms, Komolafe noted that significant reforms have been introduced to enhance Nigeria’s competitiveness in the global oil and gas industry.

    These include Executive Order No. 40, which provides a range of tax incentives, exemptions and remissions to encourage investments, particularly in deep-water oil and gas projects; Executive Order No. 41, which focuses on strengthening local content compliance while ensuring that the Nigerian Oil and Gas Industry Content Development Act of 2010 is balanced to attract foreign direct investment without hindering development; and Executive Order No. 42, which aims to reduce contracting costs and streamline timelines, making it easier for investors to enter and operate in the Nigerian market.

    Specifically, the NUPRC boss described the PIA 2021 as the cornerstone of the 2024 Licensing Round as it introduces a host of attractive fiscal regimes designed to spur investment. These include tax credits for Greenfield natural gas (NAG) developments, capital allowances for midstream and gas utilisation projects and incentives for deep-water oil and gas projects to unlock vast potential in Nigeria’s offshore fields. The PIA also emphasises harmonious relations between oil companies and host communities, ensuring sustainable prosperity through Host Community Development Trusts.

    On the 2024 Licensing Round, Komolafe revealed that 31 blocks will be available, including seven deep offshore assets from the ongoing mini-bid round and 24 acreages for bidding this year. These blocks are spread across key terrains such as the continental shelf and the Niger Delta, with notable offerings such as PPL 300-CS and PPL 301-CS in the Benin Basin, as well as various Niger Delta deep-water assets like PPL 3017, which already have existing discoveries.

    He stated further that the Nigerian Licensing Round comes with entry fees and bonuses that are competitive on the global stage. For example, signature bonuses for blocks in the Middle East and North Africa can reach US$10 million, while Southeast Asia’s signature bonuses typically range from US$1 to US$3 million. Nigeria’s incentives and reduced front-loaded fees are expected to attract a broad range of investors.

    Nigeria’s oil and gas future is also tied to the development of key matured fields, which offer substantial opportunities for growth. These include OML 145 – Nsiko Field, OML 118 – Bonga Southwest / Aparo Field, and OML 130 – Egina South Field. These fields, alongside others in development, form a critical part of Nigeria’s long-term strategy to increase production capacity and maximise its reserves.

    Komolafe urged on investors to take advantage of the 2024 Licensing Round and invest in a nation with a population of over 217 million people and proven reserves, maintaining that Nigeria is home to some of the world’s largest oil and gas reserves, offering benefits such as regulatory certainty, attractive fiscal regimes, ease of doing business and reduced entry barriers.