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.”
….Culled from Reuters
Oil prices could extend gains today as the U.S.-Israeli war against Iran entered a third week, putting oil infrastructure at risk and keeping the Strait of Hormuz shut in the world’s largest supply disruption. U.S. President Donald Trump threatened further strikes on Iran’s Kharg Island oil export hub, drawing a defiant response of further retaliation from Tehran.
Brent and U.S. West Texas Intermediate crude futures have already spiked sharply and rattled global financial markets. Both contracts have surged more than 40 per cent so far this month to their highest levels since 2022 after the U.S.-Israeli attacks on Iran prompted Tehran to halt shipping through the Strait of Hormuz – a key chokepoint for a fifth of global oil supply.
Trump has urged China, France, Japan, South Korea, Britain and others to deploy warships to secure the strategic gateway.
The United States struck military targets on Kharg Island on Saturday, which was swiftly followed by Iranian drone attacks on a key oil terminal in the United Arab Emirates.
“This marks an escalation in the conflict,” JP Morgan analysts led by Natasha Kaneva said.
“Until now, the region’s oil infrastructure has largely been spared.”
Besides UAE’s Fujairah, Saudi Arabia’s Ras Tanura export terminal and Abqaiq oil processing facilities have been listed as critical and highly vulnerable energy nodes in the Gulf, the analysts said.
However, oil loading operations at Fujairah have resumed, a Fujairah-based industry source told Reuters yesterday.
Fujairah, outside the Strait of Hormuz, is the outlet for about one million barrels per day of the UAE’s flagship Murban crude oil – a volume equal to about one per cent of world demand.
Global oil supply is expected to fall by eight million bpd in March due to disruptions to shipping while Middle Eastern producers have cut output by at least 10 million bpd, according to the International Energy Agency (IEA).
Last week, the IEA agreed to release a record 400 million barrels of oil from strategic stockpiles held by member nations to combat price spikes. Japan plans to start releasing its oil today.
Meanwhile, the Trump administration has rebuffed efforts by Middle Eastern allies to start diplomatic negotiations, according to three sources familiar with the efforts, while Iran has rejected the possibility of any ceasefire until U.S. and Israeli strikes end, dimming hopes of a quick end to the conflict.
Shell Nigeria Exploration and Production Company Limited (SNEPCo) has completed the turnaround maintenance on the Bonga Floating Production, Storage and Offloading (FPSO) vessel, leading to resumption of production at Nigeria’s premier deepwater field on March 6, 2026. The project was delivered 11 days ahead of schedule and without any safety incident, reinforcing SNEPCo’s longstanding commitment to operational excellence and asset integrity.
SNEPCo Managing Director, Ronald Adams, noted that completing the turnaround safely and ahead of schedule is a testament to the dedication and professionalism of her Nigerian workforce and the helpful support of our partners.
“The achievement not only secures the long‑term integrity of the Bonga FPSO but also positions us strongly for the successful delivery of the Bonga North project, which will leverage the improved reliability of the FPSO,” Adams said.
The exercise which began on February 1, 2026, highlights SNEPCo’s leading role in advancing deep‑water expertise in Nigeria. Of the 55 companies involved in the execution, 43 were wholly Nigerian. Additionally, eight of the 12 international service providers maintain operational bases in Nigeria, contributing to knowledge transfer and increased local investments.
More than 1,000 personnel worked offshore during the turnaround, with over 95 per cent being Nigerians involved in maintenance, engineering, operations, inspection and construction. Thousands more supported activities from onshore locations, reflecting the depth of Nigerian capability in offshore oil and gas operations.
Adams added: “We acknowledge the support of several stakeholders towards the successful execution of the exercise, including the NNPC Upstream Investment Management Services (NUIMS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Content Development and Monitoring Board (NCDMB) and our partners.”
The Chairman, Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, has blamed petroleum industry regulators for persistent delays in oil and gas contracting processes, despite a presidential directive requiring tenders to be concluded within six months. Ogunsanya disclosed this during his presentation at the opening ceremony of the Nigeria International Energy Summit (NIES) 2026 in Abuja, yesterday. The Presidential directive is aimed at accelerating project execution across the energy sector.
Recall that President Tinubu in March 2024, issued Executive Order (OE) 42 mandating reduction of petroleum sector contracting costs and timelines, being part of a wider set of oil and gas reforms signed by the administration.
“We are not concluding contract processes in six months as directed and reports sent to the Presidency often fail to reflect the realities faced by industry players,” the PETAN boss said.
Ogunsanya disclosed that his Association is currently monitoring ongoing tenders, emphasising that several projects scheduled to commence in 2026 and 2027 remain stalled due to prolonged contracting cycles.
He noted that execution gaps persist despite a significant increase in contracting activities involving expressions of interest, tenders, pre-qualifications, and technical and commercial evaluations since the fourth quarter of 2024. He also identified prolonged internal approvals, delayed Final Investment Decisions (FIDs), slow commercial negotiations, extended regulatory and compliance procedures, and funding and financial close challenges as major bottlenecks undermining project delivery.
According to him, a study conducted by PETAN revealed that the current rate of contract awards falls significantly short of the Presidential benchmark of completing tenders within six months, with most contracts structured for five years and a possible two-year renewal.
Ogunsanya therefore called on the Presidency to give closer monitoring of the contracting process to ensure that awards and project execution align with presidential timelines, warning that continued delays could weaken investor confidence and slow sector growth.
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