…Oil reserves increased by 1.43%, to 37.5 bpd, while gas reserves grew by 0.21%, to 209.26 tcf.
…Rig count increased from 8 to 40 and is projected to reach 50 before while 4 production increased by 70% to current production of 1.75 million bopd technical potential is 2.24 million bpd
-Felix Douglas
Giving his opening address in a session titled: “Imperative of Regulatory Efficacy in Optimisation of Upstream Activities and “Transformative Deals and Nigeria’s Upstream Future,” at the Nigeria International Energy Summit (NIES), the Commission Chief Executive (CCE), Engr. Gbenga Komolafe, commended the organisers of the Summit for sustaining its laudable ideal.
Komolafe asserted that NUPRC stands as a powerful catalyst for growth, sustainability, and global competitiveness of the oil sector. The Nigerian oil and gas industry is the heartbeat of the country’s economy contributing 95% of foreign exchange earnings and 70% to government revenue, unlocking employment opportunities, and positioning Nigeria as a formidable
leader in the global energy arena. Sustaining and accelerating this momentum demands a regulator that is visionary, predictable, firm, transparent, innovative and business enabling.
The Commission strives to sustain all these attributes of a 21st century regulator. Its strategic regulatory interventions are attracting investment, driving production optimisation, enhancing local content and technological innovation, promoting decarbonisation and social inclusivity, thereby securing a future of resilience and prosperity for Nigeria’s oil and gas sector.
The heart of NUPRC’s efforts is the growth of Nigeria’s hydrocarbon reserves and production in a cleaner manner for enhanced revenue generation.
In the short-term, the Commission has set new benchmarks for oil and gas production and significantly strengthening the nation’s energy security, he added.
According to Komolafe, achievements of NUPRC speak for themselves: between 2023 and 2024, oil reserves increased by 1.43%, reaching 37.5 billion barrels, while gas reserves grew by 0.21%, reaching 209.26 trillion cubic feet. Rig
count increased from 8 in 2021 to 40 in 2025 and is projected to reach 50 before year end while 4 production increased by 70% from 1 million bopd in 2021 to the current production of circa 1.75 million bopd. These accomplishments are not just numbers but are parameters for measuring vibrancy in the industry driven by effective regulatory policies.
“In pursuit of its 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, the Commission successfully completed the 2022/2024 bid licensing round, and awarded twenty-seven (27) Petroleum Prospecting Licenses (PPLs) across various terrains. Efforts are also on for the 2025 bid round, embracing a new paradigm of annual licensing rounds.
The Commission has deliberately been acquiring high-quality geological and geophysical data through multi-client service arrangements. It also ensures access to the data for enhanced value especially during licensing rounds and other transformative deals. This 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.
Nigeria’s vast oil reserves present a remarkable opportunity for growth and economic transformation. “While our current production averages circa 1.75 million barrels per day, our technical potential is 2.24 million barrels per day.”
The Commission is working assiduously to bridge the gap between the actual production and the potential
through actions aimed at improving transparency, driving collaboration with E&P companies, ensuring financial viability, fast-tracking field developments, adopting cutting-edge improved oil recovery technologies, reducing costs, eliminating entry barriers and optimizing production.
Komolafe pointed out that the potential for increased production is immense, and NUPRC is committed to unlocking every opportunity. Efforts to reactivate shut-in wells and leverage low hanging fruits opportunities will bring closer to actualization of project 1MMbopd additional production target recently launched by the Commission.
He said solution and engineering audit of upstream measurement equipment and facilities as part of non-kinetic approach to combat crude theft,
eliminate revenue leakage and maximize value.
At NUPRC, transparency is the cornerstone of regulatory approach. “We have introduced innovative regulations to improve hydrocarbon measurement, combat crude oil theft, and enhance hydrocarbon accounting.”
“In collaboration with industry stakeholders, we have developed 24 forward-thinking regulations to bolster energy security, address transition risks, and foster a resilient, competitive upstream sector. In 2024, we rolled out a Regulatory Action Plan (RAP) 2024-2026, comprising 24 cardinal pillars designed to boost operational efficiency,
enhance transparency, and position Nigeria’s upstream sector for global competitiveness and sustainable growth.”
Sustainability is imperative as the global focus shifts toward a low-carbon future and NUPRC is embedding it into 7 upstream operations, mitigating environmental risks, and protecting communities, he added.
NUPRC’s commitment to shared prosperity is demonstrated in its effective implementation of the Host Community Development Trusts (HCDTs) provisions of the PIA 2021. With 154 HCDTs registered and over N78.8 billion and $122 million contributed to the fund, the Commission’s steering tangible change, resulting in 198 ongoing projects in host communities and enhanced peace and economic growth in resource-
rich regions.
Continuing, the NUPRC boss said through strategic policy interventions, the Commission has fostered an environment that enables transformative deals, unlocking value for both investors and the nation. One of its key
achievements has been the establishment of a clear and robust divestment framework. This framework has provided a structured pathway for asset transitions, ensuring regulatory certainty, protecting industry interests, and sustaining production.
The framework was critical in facilitating high-profile transactions, such as the divestment of NAOC’s onshore and shallow water assets to Oando, Equinor’s exit through Project Odinmim, as well as the Shell Petroleum Development Company (SPDC) divestment to
Renaissance and ExxonMobil’s (MPN) asset transfer to Seplat Energy, ensuring a seamless transition while maintaining production stability, and allowing new players to bring fresh capital and expertise into the industry.
As the transformative journey continues, NUPRC remains committed to fostering a resilient,
competitive, and investment-driven upstream sector. The success of these deals is a testament to its dedication to regulatory excellence as the Commission looks forward to enabling greater milestones in the future.
On the gas aspect, Komolafe said NUPRC is committed to enriching domestic gas utilization and expanding infrastructure to meet Nigeria’s growing energy demands. NUPRC will ensure that every Field Development Plan (FDP) includes a firm commitment to fulfilling gas delivery obligations and increasing gas supply to the domestic market to meet rising local demand.
“As part of our forward-looking plan to advance deepwater development, we will promote the creation of deepwater clusters, fostering synergies in facility use to unlock the vast potential of Nigeria’s deepwater resources while reducing costs and leveraging economies of scale.”
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