Financial Energy Review
…..by Ben Ndubuwa….
The Chief Executive Officer (CEO) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, while presenting a paper titled “Imperative of Regulatory Efficacy in Optimisation of Upstream Activities and Transformative Deals and Nigeria’s Upstream Future” at the just concluded Nigeria International Energy Summit (NIES), said Nigeria’s Oil Reserve hits 37.5 billion barrels and growth in gas reserves reached 209.26 trillion cubic feet in two Year .
While commending the organizers of NIES for sustaining the summit’s vital role in shaping the future of Nigeria’s energy sector, emphasized the critical role NUPRC plays in advancing the growth, sustainability, and global competitiveness of Nigeria’s oil and gas industry.
“The Nigerian oil and gas industry is the heartbeat of our economy,” he said. “It contributes 95% of foreign exchange earnings and 70% of government revenue, while unlocking employment opportunities and positioning Nigeria as a global leader in energy.”
He further noted that sustaining the momentum in Nigeria’s oil sector demands a regulator that is visionary, firm, transparent, and business-enabling. “At NUPRC, we are committed to being a 21st-century regulator, ensuring that our strategic interventions attract investment, drive production optimization, foster local content, and promote sustainability and innovation.”
Komolafe pointed out the Commission’s efforts to grow Nigeria’s hydrocarbon reserves while ensuring cleaner methods of production. He reported notable achievements, such as an increase in oil reserves by 1.43%, reaching 37.5 billion barrels, and a growth in gas reserves by 0.21%, reaching 209.26 trillion cubic feet between 2023 and 2024. Additionally, the rig count surged from 8 in 2021 to 40 in 2025, with expectations to reach 50 by year-end. The nation’s oil production also grew by 70%, rising from 1 million barrels per day (bopd) in 2021 to approximately 1.75 million bopd.
Komolafe emphasized that these numbers are not just statistics but indicators of the industry’s vitality, driven by effective regulatory policies. “These accomplishments show the effectiveness of our regulatory interventions and our commitment to securing a resilient and prosperous future for Nigeria’s oil and gas sector,” he said.
In pursuit of further growth, NUPRC has set ambitious goals. “We aim to reach 40 billion barrels of oil and 220 trillion cubic feet of gas in reserves,” Komolafe declared. To achieve this, the Commission has rolled out strategies to stimulate exploration activities and accelerate field development. A key initiative was the successful completion of the 2022/2024 bid licensing round, which saw the awarding of 27 Petroleum Prospecting Licenses (PPLs) across various terrains.
The Commission is also focused on acquiring high-quality geological and geophysical data through multi-client service arrangements. Komolafe explained, “Access to this data empowers informed decision-making and fuels strategic investments that will shape the future of Nigeria’s oil and gas sector for shared prosperity.”
A central challenge to achieving Nigeria’s full production potential is bridging the gap between actual and potential production. “While we currently produce about 1.75 million barrels per day, our technical potential stands at 2.24 million barrels per day,” Komolafe said. He emphasized that NUPRC is committed to unlocking every opportunity to increase production, including reactivating shut-in wells and leveraging low-hanging fruits in the sector.
In addressing the issue of crude theft, Komolafe pointed to NUPRC’s innovative regulatory approach, which includes an audit of upstream measurement equipment and facilities. “We are focused on using non-kinetic methods to combat crude theft, eliminate revenue leakage, and maximize value for the nation,” he explained.
Transparency is central to NUPRC’s regulatory framework. Komolafe revealed that the Commission has introduced 24 new regulations aimed at improving hydrocarbon measurement, combating crude oil theft, and ensuring better hydrocarbon accounting. These efforts culminated in the launch of the Regulatory Action Plan (RAP) 2024-2026, a blueprint to enhance operational efficiency, transparency, and global competitiveness in Nigeria’s upstream sector.
Sustainability, particularly in light of the global push towards a low-carbon future, is another area of focus for NUPRC. “We are embedding sustainability into upstream operations, mitigating environmental risks, and protecting host communities,” said Komolafe. NUPRC’s commitment to sustainability is evident in its effective implementation of the Host Community Development Trusts (HCDTs) provisions of the Petroleum Industry Act (PIA) 2021. To date, 154 HCDTs have been registered, contributing over N78.8 billion and $122 million to the fund, with 198 ongoing projects in host communities.
Komolafe also highlighted the role of transformative deals in shaping Nigeria’s upstream future. “Our regulatory framework has enabled high-profile divestments, such as the transfer of assets by NAOC to Oando and Shell’s divestment to Renaissance,” he said. These deals, Komolafe noted, have allowed new players to bring fresh capital and expertise into the industry, while maintaining production stability.
On the gas front, Komolafe reaffirmed NUPRC’s commitment to enhancing domestic gas utilization and expanding infrastructure to meet Nigeria’s growing energy demands. “We will ensure that every Field Development Plan (FDP) includes a firm commitment to fulfilling gas delivery obligations, ensuring that Nigeria’s domestic market is well-supplied,” he added. NUPRC is also promoting the creation of deepwater clusters to unlock Nigeria’s vast deepwater resources while reducing costs.
As Nigeria continues its transformative journey in the oil and gas sector, NUPRC remains committed to building a resilient, competitive, and investment-driven upstream sector, with the ultimate goal of ensuring a prosperous future for the nation’s energy industry.
