The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to commence the 2025 licensing round on December 1, 2025, aiming to increase crude oil production in the country. This move is in line with President Bola Tinubu’s goal to grow Nigeria’s economy to $1 trillion. According to NUPRC’s Chief Executive Officer, Engr. Gbenga Komolafe, the decision to initiate the licensing rounds has been approved by the Minister of Petroleum Resources and is consistent with the Petroleum Industry Act (PIA).
The announcement was made at the ‘Project 1 Million Barrels Oil Per Day’ Investment Forum in London, where Komolafe emphasized the importance of increasing crude oil production. This development follows a recent statement by the Presidency considering a restructuring of asset ownership in the Nigerian National Petroleum Company Limited (NNPC) to boost dwindling crude oil production. The Special Adviser to the President on Energy, Olu Verheijen, stressed that achieving the 3-million-barrel daily oil production goal requires performance-based stewardship and questioned NNPC’s capacity to deliver incremental growth.
Current crude oil production in Nigeria has averaged around 1.3-1.5 million barrels per day over the last two years, according to data from the Organization of the Petroleum Exporting Countries (OPEC). However, Komolafe highlighted that the 43 Field Development Plans (FDPs) approved this year could unlock 1.7 billion barrels of crude and 7.7 trillion cubic feet of gas, indicating significant progress in Nigeria’s upstream sector. Major Final Investment Decisions (FIDs) worth over $20 billion have been committed, including $5 billion for the Bonga North project, $500 million for the Ubeta Gas project, and $2 billion for Shell’s HI Gas Project.
The NUPRC’s move to commence the 2025 licensing round is expected to attract investments and increase crude oil production in the country. The licensing round is a crucial step towards achieving the government’s goal of growing the economy and increasing oil production. With the current production levels and the potential for growth, the Nigerian oil and gas industry is poised for significant development in the coming years. The success of the licensing round will depend on the ability of the NUPRC to attract investors and ensure that the approved projects are executed efficiently.