The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced an ambitious plan to unlock 5.13 billion barrels of deepwater oil reserves in a strategic move aimed at increasing the country’s oil production by up to 810,000 barrels per day (bpd).
This initiative, unveiled during a stakeholders’ workshop held in Abuja on Thursday, is expected to reverse the persistent decline in offshore output and restore Nigeria’s competitiveness in the global energy sector.
Delivering the keynote address on behalf of NUPRC Chief Executive Gbenga Komolafe, the Executive Commissioner for Economic Regulation and Strategic Planning, Babajide Fashina, explained that the plan targets underdeveloped deepwater oil fields with a focus on collaborative, cost-effective cluster developments.
Nigeria’s deepwater oil production has significantly declined since its 2016 peak of 800,000 bpd to under 500,000 bpd, currently contributing about 26 percent of national output. Komolafe noted that revitalizing these assets is crucial to achieving Nigeria’s technical potential of 2.2 million bpd, far above the current average of 1.75 million bpd.
“Our data indicates that over 5.13 billion barrels of oil and 13.53 trillion cubic feet (tcf) of natural gas remain untapped in deepwater reserves,” Komolafe said. “Of this, 3.59 billion barrels are classified as proven and probable reserves, along with approximately 13.53 tcf of non-associated gas.”
To fast-track the development of these reserves, NUPRC has inaugurated a Shallow and Deepwater Cluster Development Committee to work closely with key upstream operators, including Star Deepwater, ESSO, Shell Nigeria Exploration and Production Company, TotalEnergies, and Nigeria Agip Exploration. The committee will drive collaborative infrastructure development and shared investment strategies.
Komolafe emphasized that the execution of approved Field Development Plans (FDPs) alone could unlock an additional 810,000 bpd in peak production.
“This is a clarion call to all stakeholders. We must break away from rhetoric and move into kinetic actions—practical, result-oriented steps,” Komolafe stated. “We’ve cumulatively produced 4.4 billion barrels from deepwater operations to date, but we must now focus on unlocking future barrels through bold, coordinated efforts.”
He acknowledged persistent challenges facing the sector, including funding shortfalls, regulatory delays, and infrastructure limitations. Notably, he lamented the gross underutilization of Nigeria’s eight Floating Production Storage and Offloading (FPSO) units.
The workshop, themed “Harnessing the Potential of Deep/Shallow Water Oil and Gas Accumulations through Clusters/Nodal Development in Nigeria,” brought together top executives and technical experts from the oil and gas industry to explore joint development opportunities.
In his technical presentation, the NUPRC’s Executive Commissioner for Development and Production, Enorense Amadasu, reaffirmed the agency’s strategy to rely on the execution of already-approved FDPs and the adoption of cost-reducing frameworks.
“We have projects like Bonga North that have already reached Final Investment Decision (FID), and several others such as Owowo, Zaba Zaba, Eta, and Bolia are in the pipeline,” Amadasu said. “Together, these projects could contribute an estimated 1.55 billion barrels of oil and condensate, along with 1.49 tcf of associated gas.”
Between 2022 and 2024, Nigeria offered 31 deepwater blocks—seven under the 2022 mini-bid round and 24 in 2024, including two continental shelf awards. However, Amadasu admitted that actual production has not reflected the potential of these allocations due to suboptimal project economics, technology costs, and delays in investment decisions.
To address these bottlenecks, the NUPRC has established a Deepwater Cluster Development Committee composed of technical and commercial specialists. A broader industry-wide committee is also set to be inaugurated, with subcommittees focused on infrastructure development, economic modeling, subsurface validation, and policy support.
Amadasu revealed that over 20 key deepwater assets—including Owowo, Nsiko, Bolia, Aparo, Bonga South West, Sheki, Akpo West, and Doro—have been identified for potential joint development. While some of these assets lack sufficient scale individually, clustering them could make development economically viable.
