‘They’ll boost reserves’ — NUPRC to tender 31 oil blocks to investors

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the country’s crude oil and condensate output is expected to increase as plans are underway to open bids for onshore and offshore oil blocks.

Enorense Amadasu, executive commissioner of development and production at NUPRC, spoke on Monday during a conference in Lagos.

Amadasu said bids will be opened for 31 oil and gas blocks in an effort to increase the country’s crude oil production and boost economic activities.

However, he did not give further details on the bidding timeline.

“These 31 oil and gas blocks have been carefully selected for their potential to boost our reserves and stimulate economic activities,” he said.

NUPRC invited investors to bid for 12 oil blocks and seven deep offshore assets in the 2024 marginal bid round on May 8.

A month later, Gbenga Komolafe, NUPRC chief executive officer (CEO), said the number of oil blocks on offer has been increased.

Also, Amadasu said Nigeria’s current production level, including crude oil and condensates, has reached 1.8 million barrels per day (bpd), up from 1.54 million bpd in September.

He said there are plans to raise the figure to 2 million bpd by year-end.

“As at today the country’s crude oil production plus condensate is 1.8 million barrels per day and we’re pushing, working with everyone to increase it to two million barrels a day before December,” the NUPRC commissioner added.

Citing enhanced security around oil infrastructure and new incentives designed to draw investors, Amadasu also said he anticipates growth in the sector.

On June 2, the Organisation of Petroleum Exporting Countries (OPEC) extended Nigeria’s production quota of 1.5 million barrels of crude oil per day (bpd) to 2025.

OPEC said Nigeria should maintain the production level till December 31, 2025.

Commenting on the deadline, Heineken Lokpobiri, minister of state for petroleum resources (oil), on October 3, said Nigeria will conform with the production quota set by OPEC.

However, OPEC, in its monthly report for September 2024, said Nigeria’s average daily crude oil production dropped to 1.32 million bpd.