– Advertisement –
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced a significant rise in the country’s rig count, increasing from just eight in 2021 to 69.
The commission said this in a statement by its Head, Media and Strategic Communication, Eniola Akinkuotu.
Akinkuotu highlighted some of NUPRC’s high impact achievements, four years since its establishment, adding that the growth is a clear testament to the renewed vigour and investor confidence in Nigeria’s upstream petroleum sector.
He said that in spite of the challenges it inherited from the pre-Petroleum Industry Act (PIA) era, it exceeded revenue targets, recorded 39.98 billion dollars investment, and increased rig count and crude oil production.
“The latest rig count of 69 comprises 40 active rigs, eight on standby, five on warm stack, four on cold stack and 12 on the move.
“This represents a 762.5 per cent increase in barely four years.
“The success aligns with the charge of President Bola Tinubu that Nigeria is ready for business and that the right investment climate prevails now in the Nigeria upstream as daily actioned by the NUPRC.”
He said that NUPRC approved billions of dollars divestments in 2024 from the Nigeria Agip Oil Company to Oando Energy Resources; and Equinor to Chappal Energies.
He said that there was also divestment from Mobil Producing Nigeria Unlimited to Seplat Energies; and Shell Development Company Nigeria Limited to Renaissance Africa Energy.
According to him, the divestment is about investor portfolio re-ordering to focus on deep-offshore development.
He said that to give meaning to the intent of the PIA, 2021, the commission, in consultation with stakeholders, developed 24 forward-thinking regulations, adding that 19 had been gazetted while five await gazetting.
Akinkuotu said that in 2022, 2023 and 2024, NUPRC surpassed its revenue target by 18.3 per cent, 14.65 per cent and 84.2 per cent respectively, in spite of oil production and prices fluctuation, thus contributing to economic growth.
“Between 2024 and 2025, the commission approved 79 Field Development Plans (FDP) (41 in 2024 and 38 Year-to-Date (YTD) 2025 with potential investment of 39.98 billion dollars.
“Crude oil production has increased with current average daily production of 1.65 million barrels per day.
“It is expected to increase further with the Project one million barrels per day initiative, aimed at achieving 2.5 million barrels per day in 2027 compared to NUPRC commencement,” he said.
According to him, prior to NUPRC‘s establishment, the licensing rounds were opaque and beclouded by political influence which made the process lack credibility.
“However, the NUPRC with the support of President Bola Tinubu, transformed the process to be fully digital, enhancing transparency and credibility.
“The commission, in line with the PIA, 2021 and with the support of the President, is implementing the ‘Drill or Drop’ policy which prescribes that unexplored acreages are to be relinquished.
“This policy is designed to ensure optimal use of oil assets and prevent dormant fields from tying up potential reserves.
“It has successfully identified 400 dormant oil fields and has also propelled complacent oil companies to take quick action,” he said.
On Gas Flare Commercialisation, he said that it had completed awards of flare sites to successful bidders under the Nigerian Gas Flare Commercialisation Programme (NGFCP).
He said that the programme was aimed at eliminating gas flaring and attracting 2.5 billion dollars investments.
The NUPRC spokesman said that the Host Community Development Trusts have remitted N122.34 billion, while dollar contributions stand at over $168.91 million.
This, he said, translated to a combined remittance of over N358.67 billion based on the prevalent exchange rate.
“The NUPRC is overseeing at least 536 projects at various stages of completion, including schools, health centers, roads and vocational centres.
“These are being funded by the trust fund while the achievement has curbed crude oil theft,” he said.
As part of its mandate to develop the country’s hydrocarbon, Akinkuotu further said that the commission had recorded 306 development wells drilled and completed between 2022 to date.
He said that the NUPRC also issued Nigeria’s first Petroleum Exploration Licence (PEL) for a large offshore geophysical survey covering 56,000 km² of 3D seismic and gravity data.
He said that in 2021, the average daily crude oil losses stood at 102,900 barrels per day (bpd) or 37.6 million barrels per year.
According to him, due to combined efforts of the General Security Forces and Private Security Contractors (TANTITA), as well as collaborative effort of the commission, this has reduced by 90 per cent to 9,600bpd .
“The Gbenga Komolafe-led NUPRC has continued to show leadership as it championed the establishment of the African Petroleum Regulators Forum (AFRIPERF), facilitating cross-border development and strong voice for Africa in hydrocarbon advocacy globally.”
By Emmanuella Anokam
