The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is setting a target to achieve at least 2.1 million barrels of oil per day (MMbd) in 2025, according to its Chief Executive, Engr Gbenga Komolafe, who addressed the Senate Committee on Appropriation while presenting the Commission’s achievements since its establishment in 2021.
Komolafe noted that Nigeria now has 32 active rigs, a significant increase from the 16 rigs operating in 2021, reflecting a robust growth trajectory in the oil sector.
On November 14, 2024, the Nigerian National Petroleum Corporation (NNPC) reported that Nigeria’s hydrocarbon production had reached 1.8 million barrels per day (MMbd) of oil and 7.4 billion cubic feet of gas per day. NNPC indicated that production could reach 2 MMbd by the end of 2024, up from 1.43 MMbd in June of the same year. Several upstream projects launched last year contributed to this growth.
In 2024, Nigeria also commenced production at Oil Mining Lease (OML) 13 in the Niger Delta, initially producing 6,000 barrels of oil per day (bopd) and expected to ramp up to 40,000 bopd by May 2024. Furthermore, NNPC brought the Madu and Awoba fields online, adding a combined 32,000 bopd to Nigeria’s production capacity. The Madu field is anticipated to average 20,000 bopd, while Awoba’s production began at 8,000 bopd, with expectations to increase to 12,000 bopd in the near future.
On September 9, 2024, NNPC and Chevron Corp. announced plans to reach a production target of 165,000 bopd by the end of 2024 following the conversion of their licenses under the Petroleum Industry Act (PIA). The conversion is expected to significantly enhance crude oil production, benefiting both NNPC and Chevron’s local arm, Chevron Nigeria Ltd.
Despite this upward trend, Nigeria has witnessed a significant onshore exit by several energy majors. Eni SpA, Equinor ASA, Exxon Mobil Corp., Shell PLC, and TotalEnergies SE have either completed or are in the process of completing divestments. Notably, on December 6, 2024, Equinor announced its exit from Nigeria after finalizing a $1.2 billion divestment, which included its 20.21% stake in the Agbami oil field, one of the world’s largest oil discoveries. Similarly, TotalEnergies sold its 10% stake in the Niger Delta-focused SPDC Joint Venture, while Shell’s exit remains pending due to regulatory approval delays.
Meanwhile, Seplat Energy PLC completed the acquisition of ExxonMobil’s Mobil Producing Nigeria Unlimited on December 12, 2024.
Looking ahead, the NUPRC will award new oil licenses as part of the licensing round launched in May 2024, with further plans to strengthen the industry’s production capabilities in the coming months.
