The Future of Nigeria’s Upstream Oil & Gas Sector
With a keen interest in unlocking oil and gas growth, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to award 220 oil blocks across the country’s onshore and offshore basins in its latest hydrocarbon licensing bid round. This includes 59 offshore blocks located in deep water.
The African Energy Council reports that NUPRC will allocate these 220 open oil blocks to concessionaires through periodic bid rounds, with the majority falling into the deep offshore terrain category, comprising 59 unlicensed blocks.
Allocation Breakdown
The distribution of the open blocks is as follows:
- Deep Offshore: 59 blocks
- Benue Trough: 41 blocks
- Chad Basin: 40 blocks
- Sokoto Basin: 28 blocks
- Bida Basin: 16 blocks
- Offshore Niger Delta: 7 blocks
- Anambra Basin: 13 blocks
- Benin Basin: 8 blocks
- Onshore Niger Delta: 8 blocks
Accelerating Development
NUPRC aims to expedite deepwater and offshore projects by introducing a cluster/nodal development model to promote shared infrastructure, joint development strategies, and optimized subsurface frameworks. This initiative is designed to enhance local content by encouraging technology domestication and local manufacturing.
Furthermore, the commission is focusing on maximizing production efficiency through strategies like the ‘Project One Million Barrels per Day Initiative,’ which saw Nigeria’s oil output peak at 1.8 million barrels per day in July 2025. Initiatives such as coordinated maintenance and produced water management are being implemented to achieve this goal.
Sustainability Framework
To address environmental concerns and attract climate-aligned investments, NUPRC has launched a seven-pillar Upstream Oil & Gas Decarbonisation & Sustainability Framework. This framework includes measures to reduce emissions and enforce regulations on gas flaring, venting, and methane emissions to boost investor confidence.
President Bola Ahmed Tinubu’s vision for industry vitality and sustained production growth aligns with NUPRC’s efforts to develop deep and shallow offshore fields through cluster development mechanisms, aiming to optimize stranded and marginally economic offshore assets.
Future Outlook
Gbenga Komolafe, Chief Executive of NUPRC, emphasizes the importance of deep and shallow water clusters in increasing output and attracting long-term investments. Collaboration is seen as key to scaling up exploration efforts and ensuring responsible development of Nigeria’s hydrocarbon resources.
Enorense Amadasu, Executive Commissioner for Development and Production, highlights the regulator’s cluster development strategy as a means to address technical, operational, and commercial challenges in offshore development, fostering win-win value propositions.
In conclusion, NUPRC is committed to advancing a sustainable energy future by integrating technology, promoting decarbonization, and enhancing investment attractiveness in Nigeria’s upstream oil & gas sector. The cluster development strategy and sustainability framework are poised to unlock resources, improve competitiveness, and future-proof the industry.