Nigeria’s Oil and Gas Sector Sees Surge in Investment and Production, Regulator Reports
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced significant gains in the nation’s oil and gas sector, attributing the progress to its strategic regulatory interventions. Speaking at the Nigeria International Energy Summit (NIES), Commission Chief Executive (CCE), Engr. Gbenga Komolafe, highlighted increased investment, optimized production, and enhanced local content as key achievements.
According to Komolafe, NUPRC’s proactive approach has led to a 1.43% increase in oil reserves, now standing at 37.5 billion barrels, and a 0.21% rise in gas reserves, reaching 209.26 trillion cubic feet. The rig count has also surged from 8 in 2021 to 40, with projections reaching 50 by year-end. Production has seen a remarkable 70% increase, climbing from 1 million barrels per day (bopd) in 2021 to the current 1.75 million bopd, with a technical potential of 2.24 million bopd.
“Our strategic regulatory interventions are attracting investment, driving production optimization, enhancing local content and technological innovation, promoting decarbonization and social inclusivity,” Komolafe stated.
The NUPRC has focused on stimulating exploration activities, completing the 2022/2024 bid licensing round and awarding 27 Petroleum Prospecting Licenses (PPLs). Plans are underway for the 2025 bid round, with a shift towards annual licensing rounds. The commission is also acquiring high-quality geological and geophysical data to facilitate informed decision-making and strategic investments.
Komolafe emphasized the commission’s commitment to bridging the gap between current production and technical potential through improved transparency, collaboration with Exploration and Production (E&P) companies, and the adoption of advanced technologies. Efforts to reactivate shut-in wells and leverage low-hanging fruit opportunities are also underway.
“Transparency is the cornerstone of our regulatory approach,” Komolafe asserted, highlighting the introduction of innovative regulations to improve hydrocarbon measurement and combat crude oil theft. The commission has also rolled out a Regulatory Action Plan (RAP) 2024-2026, comprising 24 pillars designed to boost operational efficiency and enhance global competitiveness.
Sustainability is a key focus, with NUPRC embedding it into upstream operations and mitigating environmental risks. The commission has also made strides in implementing the Host Community Development Trusts (HCDTs) provisions of the Petroleum Industry Act (PIA) 2021, with 154 HCDTs registered and substantial funds contributed, resulting in numerous ongoing projects in host communities.
The NUPRC has facilitated transformative deals, including the divestment of NAOC’s assets to Oando, Equinor’s exit, and the Shell Petroleum Development Company (SPDC) divestment to Renaissance, ensuring seamless transitions and attracting new players to the industry.
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On the gas front, NUPRC is committed to enriching domestic gas utilization and expanding infrastructure. The commission will ensure that Field Development Plans (FDPs) include firm commitments to gas delivery obligations and promote the creation of deepwater clusters to unlock the potential of Nigeria’s deepwater resources.
