- The Nigerian Upstream Petroleum Regulatory Commission said Nigeria’s crude oil production potential stands at 2.24 million barrels per day
- It said crude oil production increased by 70 per cent from one million bpd in 2021 to the current 1.75 million bpd
- NUPRC said the country’s oil rigs will increase from 40 to 50 in the coming months
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says Nigeria’s technical potential for crude oil production stands at 2.24 million barrels per day (bpd), as against the current production quota of 1.75 million bpd.
It attributed the challenge of not achieving 2.24 million bpd to the non-adoption of cutting-edge oil recovery technologies, significant costs, entry barriers, and the non-optimisation of production processes.
The Chief Executive of NUPRC, Gbenga Komolafe, stated this at the ongoing Nigeria International Energy Summit on Wednesday, February 26, in Abuja.
In his opening address at the panel session titled, ‘Imperative of Regulatory Efficacy in Optimisation of Upstream Activities,’ Komolafe stressed that the commission is committed to closing the gap through strategic initiatives.
He said, “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 optimising production.
“The potential for increased production is immense, and NUPRC is committed to unlocking every opportunity. Our efforts to reactivate shut-in wells and leverage low-hanging fruit opportunities will bring us closer to the actualisation of the Project 1MMbopd additional production target recently launched by the commission.
“We are steadily progressing actions on Advanced Cargo Declaration Solution and Engineering Audit of Upstream Measurement Equipment and Facilities as part of our non-kinetic approach to combat crude theft, eliminate revenue leakage and maximise value.”
70 per cent increment in crude oil production
Komolafe also stated that the country’s crude oil production increased by 70 per cent from one million bpd in 2021 to the current 1.75 million bpd.
He stated that the sector has seen an increase in the past year as oil reserves had increased by 1.43 per cent, reaching 37.5 billion barrels, while gas reserves grew by 0.21 per cent to 209.26 trillion cubic feet.
In pursuit of its target of 40 billion barrels of oil and 220 trillion cubic feet of gas, he said the commission had implemented strategies to stimulate exploration and accelerate field development.
These efforts include the completion of the 2022/2024 bid licensing round and the award of 27 Petroleum Prospecting Licences across various terrains.
Komolafe added that preparations were underway for the 2025 bid round, adopting a new model of annual licensing rounds, supported by high-quality geological and geophysical data in the build up to the 2025 bid round.
He also highlighted that the commission has introduced several innovative regulations, including those aimed at improving hydrocarbon measurement, addressing crude oil theft, and bolstering hydrocarbon accounting practices.
“At this point, it is worth highlighting that the commission has deliberately been acquiring high-quality geological and geophysical data through multi-client service arrangements.
“The commission also ensures access to this data to enhance value, particularly during licensing rounds and other strategic transactions.
“This proactive approach facilitates informed decision-making and drives strategic investments that will shape the future of Nigeria’s oil and gas sector for shared prosperity,” he said.
Oil rigs will increase to 50 in coming months
Komolafe further stressed that the oil and gas industry is crucial to the Nigerian economy, as it contributes 95 per cent of foreign exchange earnings and 70 per cent of government revenue.
The NUPRC boss stated that a visionary and transparent regulatory framework is of importance in sustaining the country’s leadership in the global energy sector.
He also disclosed that the country’s rig count increased from eight in 2021 to 40 in 2025, projecting further increase to 50 rigs in the coming months.
Also on the list of the commission’s achievements is the Nigeria Gas Flare Commercialisation Programme, which is expected to unlock approximately $2.5 billion in investments, generate substantial revenue and create numerous job opportunities.
Nigeria still Africa’s largest oil producer, as OPEC reports 1.5 million bpd output in November
Meanwhile, TheRadar earlier reported that Nigeria retained its spot as Africa’s largest oil producer, according to the Organisation of the Petroleum Exporting Countries (OPEC).
OPEC, in its latest Monthly Oil Market Report for November 2024, released on Wednesday, December 11, said Nigeria’s oil output increased in November to 1.48 million barrels per day (bpd), excluding condensate, from 1.33 million bpd recorded in October 2024.
