Nigeria Pushes for 1 Million Barrels/Day: Oil Majors Rally Behind New Production Drive

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Olori Uwem

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Mar 18, 2024
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Nigeria Pushes for 1 Million Barrels/Day: Oil Majors Rally Behind New Production Drive

Nigeria has received strong backing from leading global oil companies as the country intensifies efforts to significantly boost crude oil production.
Major players such as Shell, TotalEnergies, ExxonMobil, and members of the Petroleum Technology Association of Nigeria (PETAN) have pledged full support for Nigeria’s ambitious plan to increase output by one million barrels per day (bpd).

This commitment was made at the NUPRC Project 1MMBOPD Additional Production Investment Forum held in London, a strategic event designed to draw investment and unlock new production capacity.

What Was the Purpose of the London Forum?

The event was organized by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to:
• Engage investors and top oil operators
• Address existing funding limitations
• Showcase new investment-ready upstream oil projects
• Strengthen collaboration needed to hit the 1 million bpd target

The forum brought together regulators, investors, and operators — creating a direct platform for decision-makers to discuss opportunities and barriers.

Key Announcement: 2025 Oil Licensing Round Starts Dec 1

NUPRC Chief Executive, Engr. Gbenga Komolafe, confirmed that:
• The 2025 Oil Licensing Round will officially commence on December 1, 2025.
• It will focus on releasing undeveloped and fallow oil and gas assets, opening them up for development.
• The goal is to maximize Nigeria’s resource potential while attracting fresh capital into the industry.

This licensing round is positioned as one of the biggest opportunities for both local and international investors in recent years.

What Investors Gained from the Forum

Investors were given:
• Direct access to top decision-makers
• A catalogue of commercially viable upstream projects
• Assurances of transparency, improved efficiency, and partnership stability

This is aimed at restoring investor confidence and increasing inflow of capital into Nigeria’s upstream sector.

Government Assurances: PIA Will Remain Stable

Lawmakers and senior officials reiterated the Federal Government’s commitment to:
• Removing operational bottlenecks that slow down production
• Ensuring the Petroleum Industry Act (PIA) remains stable
• Avoiding any arbitrary amendments that may worry investors

This assurance is crucial because frequent policy changes have historically discouraged long-term investment in Nigeria’s oil sector.

Why This Matters

If successful, Nigeria’s new production strategy could:
• Boost daily output significantly
• Increase government revenue
• Strengthen foreign exchange earnings
• Restore Nigeria’s position as Africa’s top oil producer

The strong support from global oil giants suggests renewed confidence in Nigeria’s upstream sector.