Energy
NUPRC: We have reactivated dormant fields
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it reactivated dormant fields, fast-tracking regulatory approvals and enhancing operational efficiencies across the upstream value chain to ramp up production, especially to attain its project one million barrels initiative launched in 2024.
The Commission Chief Executive (CCE), Gbenga Komolafe, who made the remark during the maiden conference of the Energy Correspondents Association of Nigeria (ECAN) yesterday in Abuja, said with a clear target of increasing production to 2.5 million bpd by 2026, the initiative has already demonstrated strong momentum with current unreconciled daily production averaging 1.7 – 1.83 million bpd.
He said there are new frontier opportunities in onshore, shallow water, and deep offshore blocks, especially in underexplored basins, enabled by its new licensing rounds regime.
His words: “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.”
He said the commission has given approval of 37 new evacuation routes, coupled with intensified collaboration with national security agencies, has significantly curtailed crude theft and enhanced accountability across the industry.
“At the same time, the enforcement of the Domestic Crude Supply Obligation (DCSO) is securing consistent feedstock to local refineries, strengthening Nigeria’s internal supply chains, and building long-term economic resilience. On the socio-developmental front, the Host Community Development Trust (HCDT) framework, fully operational via our HostComply digital platform, has created unprecedented transparency and direct community impact, fostering trust, reducing conflict, and reinforcing social licence to operate. Our broader digital transformation agenda is also reshaping regulatory engagement: streamlining approvals, improving investor clarity, and delivering faster and smarter oversight.”
He stated that while hydrocarbons continue to generate nearly 90% of Nigeria’s foreign exchange earnings and 70% of government revenue, he said its long-term viability of the energy sector depends on aligning growth with climate responsibility.
“Our gas-centric energy transition strategy is a cornerstone of this effort, anchored by flagship initiatives such as the Decade of Gas, the Nigerian Gas Flare Commercialisation Programme (NGFCP), and the Presidential CNG Initiative. These programmes collectively aim to eliminate routine gas flaring by 2030 and reduce methane emissions by 60% by 2031.”
“In parallel, we are working collaboratively with industry stakeholders to fully monetize Nigeria’s abundant gas resources through strategic LNG expansion, deployment of floating production solutions, and the development of cross-border pipelines designed not only to power Nigeria’s economy but to accelerate Africa’s broader industrialisation. Beyond infrastructure, the NUPRC is also championing the creation of a transparent, competitive, and investor-friendly gas market, unlocking the commercial potential of an estimated 600+ trillion cubic feet of gas resources (upward potential) and positioning Nigeria as a central hub in the global energy transition.”
The net-zero ambition is also anchored on Nigeria’s Upstream Decarbonisation Framework and Blueprint, designed by the Commission to integrate emissions monitoring, MRV systems, carbon capture and storage, and access to climate finance via carbon markets. In doing so, we are enabling emissions reduction to generate value through a burgeoning carbon services ecosystem: comprising monitoring technologies, advisory services, and advanced deployment tools, while upholding the highest standards of environmental and asset integrity.
The chairman of ECAN, John Ofikhenua, said the theme of the conference: ‘Four Years of the Petroleum Industry Act (PIA): Achievements, Gaps and the Way Ahead,’ is both timely and thought-provoking.
“Four years on, it is right that we pause to ask: How far have we come? What has changed? And what must we still do to make the promise of the PIA a living reality for all Nigerians? As one who has covered this sector for many years, I cannot forget the long and torturous journey that brought us here. For over two decades, we reported the hopes, frustrations, and sheer resilience of stakeholders who yearned for reform. We chronicled the endless back-and-forth of the Petroleum Industry Bill — its drafts, its withdrawals, its controversies, and its rebirth as the PIA.”
He said the passage of the Act was no accident but a triumph of persistence — a product of the vision and hard work of men and women like the late Dr. Rilwanu Lukman, Dr. Emmanuel Egbogah, and many others who laboured behind the scenes from the days of the Oil and Gas Sector Reform Implementation Committee.
“Those of us who were there remember the uncertainty that once defined the sector — when decisions were made by discretion rather than law; when even ministers lamented that their hands were tied. We remember how former Petroleum Minister, Odein Ajumogobia, eager to deliver results, was accused of jumping ahead of legislation — a reflection of just how paralyzed the system had become. And who among us can forget those long, frustrating queues at filling stations — symbols of a broken framework and an outdated policy regime?”
On his part, the Minister of Petroleum Gas said the event is both timely and commendable, as it also provides an essential platform to reflect on the progress made since the enactment of the Petroleum Industry Act four years ago.
“The PIA remains a landmark legislation that has redefined the governance, fiscal, and operational frameworks of Nigeria’s oil and gas industry.”
Thirty-one companies yesterday emerged winners of 37 oil and gas blocks at the 2025 Licensing Round which held at the Transcorp Event Center, Abuja. A total of 143 companies had submitted 200 bids for 37 out of the 50 oil and gas blocks originally put on offer.
Of the 50 blocks on offer, 37 received bids while no bids were submitted for the remaining 13. The 37 blocks that attracted bids were drawn from all the terrains including the frontier basins like the Benue Trough, Chad Basin, Anambra Basin and the Benin Basin.
These blocks were drawn from diverse terrains including the Niger Delta Onshore 16; Niger Delta Shallow Water, 18;, Niger Delta Deep Offshore, one; Benin Basin Onshore, three; Anambra Basin Onshore, four; Chad Basin Onshore, four and Benue Trough, four.
A statement by the Head of Media and Communications, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Eniola Akinkuotu, noted that yesterday’s licencing round marked the first time in the country’s energy landscape that frontier basins would attract such level of investor interest.
The companies that emerged winners of the 2025 Licensing Round include: SSonic Petroleum Limited (PPL 2A29), CFP Pipeline and Flowlines (2A30), Dutchford E&P Limited (2A32), Attabanson Global Company Limited (2A33 and PPL 901), Rosem Energy Limited (2A38), Pivot-GIS Limited (2A39), Network E&P (2A40), Asharami (2A41), LexOil (2A42), BVOF (2A43), GupscoEnergy Limited (2A44 and 2A51), Saratoga (2A45), Volante (2A46), Concept-Reel Petroleum Services Limited (2A47 and 2A55), Clinton Oil Field (2A48 and 2A62) and Nuway Oaklane Limited (2A49).
Others are Ramec (2A50), Italia (2A53), Blueridge E&P (2A54), Up Energies Limited (2A56), AYM Shafa (2A57), Blackrock Holdings Limited (2A58), Funtay Integrated Business Limited (2A59), Riparian Development and Production Limited (2A60), Nikstallis (2A61 and PPL 900), Stardeep Petroleum (PPL 2010), Dakoda & U Limited (PPL308 and PPL 800), Southborne Oil and Gas Limited (PPL 902), Lanaka Petroleum (PPL 903) HighbanResources Limited (PPL 700), Eyre Energy Limited (PPL 801).
In line with the Petroleum Industry Act, 2021, these firms will only be presented final awards after the payment of the appropriate signature bonus and the approval of the Minister of Petroleum Resources.
In her remarks, the Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, thanked President Bola Tinubu for supporting the Commission to deliver a seamless licensing round.
While congratulating the winners, Eyesan urged them to pay their signature bonuses as quickly as possible and also develop their assets or risk losing them in line with the drill or drop provision enforced by the Commission.
The commercial bid conference was closely monitored by representatives of the Federal Ministry of Petroleum Resources, the Federal Ministry of Finance, the Nigeria Extractive Industry and Transparency Initiative (NEITI)and several other stakeholders in line with the extant laws.
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Felix Ogbe, an engineer, yesterday revealed that in the last 15 years, local participation in the country’s oil and gas sector recorded a significant rise from less than five per cent to 61 per cent.
He made this known yesterday while delivering his speech at the 25th Edition of the Nigeria Oil and Gas Energy Week currently ongoing in Abuja. He spoke on the theme: “Shaping the Next Phase of Local Content Growth.”
The NCDMB boss attributed the increase to the signing of the NOGICD Act of 2010, describing it as accounting for the success.
To sustain this increase, Ogbe said, the next phase must focus on manufacturing, competence and global competitiveness, if the country is to achieve its target of becoming a $1 trillion economy.
“Over the last 15 years, Nigeria’s local content journey has become a remarkable success story,” Ogbe declared, adding that, “Through the implementation of the NOGICD Act of 2010, we have transformed local participation in the oil and gas industry from marginal levels of less than five per cent to 61 per cent a situation where Nigerians now own assets, provide services, execute projects, and contribute significantly across the oil and gas value chain.”
Although he expressed satisfaction with the feat, Ogbe nonetheless said the next phase of the board’s strategy is to move beyond mere compliance metrics toward deep-rooted industrialisation and global competitiveness.
“These achievements deserve to be celebrated. However, they also compel us to ask a fundamental question: What comes next? The next phase of local content growth must go beyond participation and compliance. It must focus on capacity expansion, industrialization, manufacturing, sustainability and global competitiveness,” the NCDMB boss said.
To ensure a sustenance of this achievement and further upscaling, he disclosed that the NCDMB, following in line with Presidential Directives, has partnered with NIPEX, NUPRC, NMDPRA, NNPC, and the Oil Producers Trade Section (OPTS) to create a harmonised ranking system.
To this end, the Board will commence modification of its various certification portals in readiness for the joint industry capacity audits of in-country manufacturers and service providers operating within the oil and gas industry.
The audit, he added, will begin in the third quarter 2026.
“The outcome of the in-country capacity audit will provide a detailed understanding of existing capabilities, eliminate intermediaries, improve contracting cycle timelines, and ensure direct patronage of established service providers for business sustainability and growth.
“The findings from the exercise will also enable the Board and industry stakeholders to make informed decisions regarding investment priorities, technology partnerships, financing support, and policy interventions,” Ogbe added.
The Board, he revealed, also maintained a zero tolerance against operators failing to remit their statutory fees into the Nigerian Content Development Fund (NCDF)- a fund meant for building domestic capability. To ensure full compliance, possessing an NCDF Compliance Certificate will now be major criteria for doing business.
“It is therefore unacceptable for any company to withhold, delay, or fail to remit its statutory contributions to the Nigerian Content Development Fund (NCDF). The Board will continue to strengthen its compliance and enforcement mechanisms and will not hesitate to invoke all available regulatory measures to ensure compliance, because possession of a valid NCDF Compliance Certificate is increasingly becoming an important requirement for participation in industry opportunities and regulatory engagements,” Ogbe added.
- Reduces PMS by N200/l in one month
Dangote Petroleum Refinery & Petrochemicals has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), otherwise known as petrol. The latest reduction marks its fourth price cut within a month as the company said it continues to pass lower production costs to consumers despite still processing crude oil purchased at significantly higher international prices.
The latest N50 per litre reduction brings the cumulative decrease in the refinery’s PMS ex depot price to N200 per litre since May 30, 2026, reducing the gantry price to N1, 075. Over the same period, the refinery has reduced the ex-depot price of Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre.
The company said the successive reductions demonstrate its commitment to ensuring Nigerians benefit from favourable market developments while maintaining the long-term sustainability of domestic refining operations.
In a statement issued yesterday, the refinery explained that petroleum product pricing cannot mirror daily movements in international crude oil markets because crude is purchased weeks, and sometimes months, before it is processed.
According to the refinery, the petroleum products currently being supplied to the market are being produced from crude inventories acquired during periods of substantially higher prices.
It disclosed that the average landed cost of crude processed stood at approximately $124.80 per barrel in May and $95.25 per barrel in June, compared with the current international benchmark of about $71.01 per barrel.
The refinery also clarified that its crude procurement costs are not based solely on the headline ICE Brent benchmark commonly quoted in the media.
Rather, crude is purchased on a Dated Brent basis together with applicable market premiums, freight and logistics costs, resulting in actual feedstock costs that differ materially from benchmark prices.
Despite the sharp increase in crude acquisition costs during the period, Dangote Refinery said it deliberately refrained from transferring the full impact to consumers, choosing instead to absorb a significant portion of the additional costs in order to support market stability and cushion Nigerians from the volatility in global energy markets.
The company noted that this pricing approach has helped to keep petroleum product prices in Nigeria below those prevailing in neighbouring countries, even after accounting for applicable taxes. It added that as lower priced crude cargoes progressively enter its production cycle, the refinery has begun systematically passing the benefits to the market through phased price reductions.
“Today’s N50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to above N200 per litre on PMS. This approach ensures that pricing decisions are anchored on actual production economics and inventory costs rather than short term fluctuations in international oil markets.
“Nigeria today benefits from the stabilising role of domestic refining capacity. The Dangote Petroleum Refinery currently supplies volumes sufficient to meet national demand, helping to strengthen energy security, eliminate dependence on imports, conserve foreign exchange and provide greater price stability for consumers and businesses,” the Refinery management said in the statement.
The company expressed confidence that if international crude prices remain favourable and lower cost feedstock continues to replace higher priced inventories, Nigerians should expect further moderation in petroleum product prices.
Dangote Petroleum Refinery reiterated its commitment to supplying high quality, internationally certified petroleum products at competitive prices while supporting Nigeria’s economic growth and the long-term development of the country’s downstream petroleum sector.
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