Oil & Energy
NUPRC To Sustain Competitive Licensing Rounds … Prioritize Frontier Basin Exploration
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has highlighted ongoing reforms aimed at improving oil production and achieving energy efficiency in the country.
The Commission’s Chief Executive Officer (CCE), Gbenga Komolafe, expressed optimism about the Commission’s forward agenda which includes: sustaining competitive licensing rounds, accelerating frontier basin exploration; fast-tracking the reactivation of shut-in and dormant assets;
Speaking at the 50th Anniversary celebration of the Nigerian Association of Petroleum Explorationists (NAPE), in Lagos, Komolafe stated that with 210.54 trillion cubic feet of natural gas reserves, and 37.28 billion barrels of crude oil, Nigeria which currently produces approximately 1.8 million barrels of oil and 8 billion standard cubic feet of gas per day, can increase its production to 3 million barrels of oil and 12 billion standard cubic feet of gas per day.
According to him, realizing these ambitious targets require sustained investment to unlock untapped basins, advance the development of mature and frontier fields, and establish critical oil and gas infrastructure to secure future energy needs as well as support the demands of the growing population.
“The above narratives underscore the vast opportunities within Nigeria’s upstream oil and gas sector, driven by transformative reforms under the PIA, Presidential Executive Orders, supportive policies, tax incentives, and ongoing infrastructure improvements.
“With abundant natural resources, and a large, youthful, future-ready and innovative workforce, Nigeria stands as a compelling and competitive destination for both existing investors and new entrants seeking to participate in our dynamic and promising energy landscape.
“There are new frontier opportunities in onshore, shallow water and deep offshore blocks, especially in underexplored basins, enabled by our new licensing rounds regime.
“There are also other vast and compelling transformative opportunities particularly in natural gas development, gas-to-power initiatives, Liquefied Natural Gas (LNG) projects, FLNGs and Compressed Natural Gas (CNG) transportation infrastructure, aimed at enhancing both export capacity and domestic energy supply.
“In addition, attractive green investment prospects exist in decarbonisation technologies and renewable energy solutions, as well as a wide range of other investment and business opportunities in project financing, investment and technical services”, he said.
He noted that despite the fact that infrastructure deficits and investment apathy, fuelled by the global energy transition and environmental concerns, still exist, they are not insurmountable, adding that with well-informed strategies and robust collaboration across local and regional stakeholders, these obstacles can be effectively addressed.
He was optimistic about the Commission’s forward agenda which includes: sustaining competitive licensing rounds, accelerating frontier basin exploration; fast-tracking the reactivation of shut-in and dormant assets; advancing the 1MMBPD initiative; expanding evacuation infrastructure to secure production volumes; deploying the Advanced Cargo Declaration System to curb crude theft and improve export transparency; guaranteeing steady domestic crude supply to refineries; enforcing Executive Orders #40–42 to boost commercial viability, operational efficiency, and local content participation; advancing social investment, and regional energy integration; operationalizing our decarbonisation strategies and enabling carbon market participation, and deepening gas commercialisation efforts across all initiatives.
Komolafe, who spoke on the keynote Address “Evolution of Oil and Gas Revolution In Nigeria: Opportunities achievements and Regulatory Strategies for upstream resources optimization “, commended NAPE for its landmark achievements for the past five decades in the oil and gas sector
“It is with deep appreciation and thoughtful reflection that I join you in celebrating NAPE’s 50th Anniversary, a remarkable milestone in the journey of an institution that has been the intellectual engine and professional cornerstone of Nigeria’s upstream oil and gas sector.
“For five decades, NAPE has stood as a pillar of geoscientific excellence, driving strategic exploration, advancing industry knowledge, and building critical bridges between academia, government, and the energy sector. This golden jubilee, themed “NAPE @ 50: Pioneering the Future of Energy in Africa,” is far more than a celebration; it marks a defining moment to reaffirm our shared commitment to building a resilient, innovative, and forward-looking energy future for Nigeria and the African continent.
“As we mark NAPE’s golden jubilee, we are reminded that this celebration is not just about the past, but about charting the course for the future. The regulatory evolution in Nigeria’s upstream sector has laid the foundation for a more resilient, transparent, and investor-ready enerugy landscape.
“Let us recommit ourselves to deepening our exploration frontiers and translating resources into inclusive prosperity”, he said.
Komolafe, who was honoured with the “Corporate Partner Energy Policy Reform Award”, said the transformative impact has been remarkable adding that the nation’s oil and gas sector has seen a significant surge in investment through new investors, empowered by clarity and quality in the sector.
“Oil and Gas reserves and production have increased, while rig counts have surged from 8 in 2021 to 43 currently, with projections to reach 50 by the end of the year. This momentum reflects a bold new chapter; one driven by ambition, resilience, and opportunity”, he said.
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said there are no subsidies in the oil and gas sector as Nigeria operates a completely deregulated market.
The Director, Public Affairs Department, NMDPRA, George Ene-Italy, made this known in an interview with newsmen, in Abuja, at the Weekend.
Reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CBG), Ene-Italy said, “What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act”.
He insisted that as long as the prevailing CNG market price conforms to the baseline, then the pricing is legitimate.
Furthermore, the Presidential – Compressed Natural Gas Initiative (P-CNGI) had said that no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI boss, Michael Oluwagbemi, emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.
For absolute clarity, it said that while pricing matters fell under the purview of the appropriate regulatory agencies, no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI said its mandate, as directed by President Bola Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative fuel and diesel nationwide.
The Managing Director, Financial Derivatives Company Limited (FDC), Bismarck Rewane, has said that Nigeria’s Gross Domestic Product (GDP) could rise to $357b if electricity supply would increase from the present 4.500MW to 8,000MW.
Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country’s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 though the sector has installed capacity to generate 13,000 MW.
In his presentation at the Lagos Business School (LBS) Executive Breakfast Session, titled “Nigeria Bailout or Lights Out: The Power Sector in a Free Fall”, Rewane insisted that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.
He said, “According to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.
“If power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And, due to multiplier effects, GDP could rise to $357 billion.”
The FDC’s Chief Executive said “in the last 30 years, Nigeria has invested not less than $30 billon to solve an intractable power supply problem.
“The initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.
“Twenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.
“The way out is a bailout, or it is lights out for Nigeria”, he warned.
He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan’s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.
Rewane, who defined a bailout as “injection of money into a business or institution that would otherwise face an imminent collapse”, noted that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.
He said, “The President has promised to consider a financial bailout for the Gencos and Discos. With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.”
Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.
Rewane, however, noted that implementing a bailout for the power sector could have a positive effect on the country’s economy if Nigeria’s actual power generation could rise from today’s 4,500 MW to around 8,000 and 10,000 MW.
The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.
The Nigeria Extractive Industries Transparency Initiative (NEITI) has blamed the increasing crude oil theft across the nation on the persistent layoff of skilled workers in the oil and gas sector.
The Executive Secretary, NEITI, Orji Ogbonnaya Orji, stated this during an interview with newsmen in Abuja.
Orji said from investigations, many of the retrenched workers, who possess rare technical skills in pipeline management and welding, often turn to illicit networks that steal crude from pipelines and offshore facilities.
In his words, “You can’t steal oil without skill. The pipelines are sometimes deep underwater. Nigerians trained in welding and pipeline management get laid off, and when they are jobless, they become available to those who want to steal crude”.
He explained that oil theft requires extraordinary expertise and is not the work of “ordinary people in the creeks”, stressing that most of those involved were once trained by the same industry they now undermine.
According to him, many retrenched workers have formed consortia and offer their services to oil thieves, further complicating efforts to secure production facilities.
“This is why we told the Nigerian Content Development and Monitoring Board (NCDMB) to take this seriously. The laying off of skilled labour in oil and gas must stop”, he added.
While noting that oil theft has reduced in recent times due to tighter security coordination, Orji warned, however, that the failure to address its root causes, including unemployment among technically trained oil workers would continue to expose the country to losses.
According to him, between 2021 and 2023, Nigeria lost 687.65 million barrels of crude to theft, according to NEITI’s latest report. Orji said though theft dropped by 73 per cent in 2023, with 7.6 million barrels stolen compared to 36.6 million barrels in 2022, the figure still translates to billions of dollars in lost revenues.
Orji emphasised that beyond revenue, crude oil theft also undermines national security, as proceeds are used to finance terrorism and money laundering.
“It’s more expensive to keep losing crude than to build the kind of monitoring infrastructure Saudi Arabia has. Nigeria has what it takes to do the same”, he stated.
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