Nigerian Upstream Petroleum Regulatory Commission
Nigeria’s upstream petroleum regulator is targeting at least 250,000 barrels per day (bpd) in additional crude oil production from 22 petroleum prospecting licence holders within the next five years, as the country seeks to expand output and reach its three-million-barrel-per-day production ambition by 2030.
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Oritsemeyiwa Eyesan, chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced the target on Tuesday at an onboarding workshop in Lagos for holders of licences awarded during the 2022, 2023 and 2024 licensing rounds.
The regulator is focusing on moving the licence holders from asset ownership to active exploration and production, with some operators expected to achieve first oil within three years.
NUPRC Focuses on Moving Oil Licences into Production
Eyesan said the immediate priority was to ensure the awardees begin operations and fulfil the minimum work programmes attached to their licences. The commission expects production to increase as exploration progresses and operators develop their respective assets.
The workshop, themed “From Award to Production: Delivering Nigeria’s Upstream Petroleum Potential Under the Petroleum Industry Act, 2021”, was designed to provide the licence holders with regulatory guidance and help them advance towards commercial production.
The commission’s approach reflects the challenge of converting oil block awards into actual output. Winning a licence does not automatically result in production; operators must finance exploration, establish technical capacity, develop infrastructure and meet regulatory requirements before extracting commercial volumes.
Eyesan said the regulator would continue working with operators, oilfield service providers and other institutions to address barriers to investment and production growth.
Technical and Financial Capacity Remain Important
The NUPRC chief also addressed concerns about whether some licence holders, particularly newly established companies without extensive operating histories, possess the resources needed to develop their assets.
She maintained that the bidding process included technical and financial qualification requirements and that successful applicants had been assessed against the prescribed guidelines.
However, the regulator’s responsibility extends beyond awarding licences. It must also monitor whether operators have the funding, expertise and operational plans required to meet their commitments.
This makes implementation a critical test of the licensing rounds. Delays in exploration or inadequate funding could prevent the expected production volumes from materialising within the projected timeframe.
Production Target Supports Nigeria’s 2030 Ambition
The projected 250,000 bpd from the 22 licence holders forms part of Nigeria’s broader ambition to raise crude oil production capacity to three million barrels per day by 2030.
Achieving that goal will depend not only on new fields coming on stream but also on sustaining production from existing assets, reducing operational disruptions and improving investment conditions across the upstream sector.
New production could strengthen crude oil supply, support export earnings and improve government revenue if operators meet their work commitments and the additional output reaches commercial production.
Nevertheless, the five-year projection remains a target rather than guaranteed supply. Exploration results, financing conditions, infrastructure constraints and the pace of field development will influence how much oil the new licence holders ultimately deliver.
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