Energy
Nigeria Issues 7,942 Oil Service Permits, 49 Licences in Q1 — Report
In a move showing sustained activity in her upstream petroleum sector despite a moderation in permit volumes compared to the previous quarter, the Nigerian government issued 7,942 oil and gas industry service permits and 49 upstream monitoring licences in Q1, 2026.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) made the disclosure in its Upstream Service Industry Newsletter for the first quarter of 2026.
According to the report, a total of 7,942 permits were issued under the Oil and Gas Industry Service Permit (OGISP), scheme between January and March 2026, while 49 upstream monitoring and regulation licences were granted during the same period.
The commission noted that permit volumes declined 22.3 per cent compared to the fourth quarter of 2025 but attributed the moderation to normal regulatory cycles rather than a slowdown in industry activity.
“A total of 7,942 permits were issued under the OGISP in Q1 2026. This represents a 22.3 per cent decline compared to Q4 2025. Major and specialised permit categories accounted for over 90 per cent of total permits issued,” the report stated.
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The report further stated that the licences covered rig inspections and certifications, hydraulic workover certifications, and vessel licences, among others.
A breakdown of the licensing activities showed that February recorded the highest level of activity, accounting for 24 licences, or about 49 percent of the total licences issued during the quarter. Rig-related licences represented approximately 69 percent of all approvals granted within the period.
The report further revealed that major and specialised permit categories accounted for more than 90 percent of all permits issued under the OGISP framework during the quarter.
The Commission asserted that the upstream service sector maintained stable performance during the period, supported by sustained licensing activities, permit processing, and ongoing regulatory reforms aimed at improving transparency and operational efficiency in the industry.
The NUPRC said key policy reforms, licensing advancements, and strategic collaborations undertaken during the quarter helped strengthen investor confidence and support operational activities across the upstream oil and gas value chain.
The report also highlighted continued progress in the sector, including the signing of a new 11,700-square-kilometre 3D seismic survey agreement and record gas output achieved by key operators during the quarter.
According to NUPRC data, Nigeria’s active rig count rose to 73 in March 2026 as operators sustained drilling activities and expanded exploration and production programmes.
The report showed that the number of active rigs stood at 72 in January and February before rising to 73 in March, reflecting continued investment in upstream oil and gas operations.
Providing an overview of the quarter, the commission stated that the upstream service sector remained resilient despite broader industry challenges. N1.23bn was generated from oil and gas industry service permits.
“Q1 2026 reflected stable upstream service sector performance, supported by consistent rig activity, sustained licensing (49 UMR licences), and strong OGISP revenue generation of N1.23bn,” the report stated.
According to the regulator, land operations remained the dominant segment of Nigeria’s drilling activities during the quarter.
The report noted that land-based rigs remained steady at 52 throughout the three-month period, accounting for the largest share of total drilling activity.
Offshore operations increased modestly from 11 rigs in January and February to 12 rigs in March, while swamp operations remained unchanged at nine rigs during the period.
Explaining the trend, the commission said, “The data shows that Nigeria maintained stable rig activity from January to February, with total rigs increasing slightly from 72 to 73 in March.
“Land operations accounted for the highest number of rigs, as it remained stable in Q1 with 52 rigs and drove the overall increase. Offshore rigs remained steady at 11 January and February and increased to 12 in March, while swamp rigs were constant at 9 throughout the period.”
The regulator said the performance demonstrated continued operational stability across Nigeria’s upstream sector.
“Overall, the trend reflects stable drilling operations, with marginal growth concentrated in land-based activities,” the report added.
More significantly, the commission revealed that drilling activity increased substantially compared with the corresponding period of last year.
“Q1 2026 showed an increase (22.6 per cent) in total rig count compared to Q1 2025, indicating strong growth in upstream activity,” the report stated.
The increase suggests that operators are intensifying development activities amid ongoing reforms introduced under the Petroleum Industry Act and efforts by the regulator to attract investment into the sector.
The latest figures suggest that Nigeria’s upstream industry maintained positive momentum in the first quarter of 2026, with increased drilling activity, sustained licensing and ongoing exploration programmes providing fresh signals of investor confidence in the country’s oil and gas sector.
Energy
Nigeria Records Zero Aviation Fuel Imports for 13 Months
Nigeria’s domestic refineries have completely displaced imported Aviation Turbine Kerosene, commonly known as aviation fuel or Jet A-1, with official industry data showing that local producers solely supplied the country’s aviation fuel market over the past 13 months.
An analysis of the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s latest petroleum supply statistics showed that between June 2025 and June 2026, there was no recorded import of aviation fuel by Oil Marketing Companies, making domestic refineries the exclusive source of supply throughout the period.
The development marks a significant shift for Nigeria’s aviation fuel market, which had relied heavily on imported Jet A-1 for years due to inadequate domestic refining capacity.
The data showed that domestic refinery receipts fluctuated significantly during the review period, rising from 1.3 million litres per day in June 2025 to 1.5 million litres per day in July before climbing sharply to 3.5 million litres per day in August.
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Supplies later moderated to 1.6 million litres per day in September and 2.7 million litres per day in October, while no receipt was recorded in November. Output then surged dramatically to 14 million litres per day in December, the highest level recorded during the period.
In 2026, domestic refinery receipts fell to 6.0 million litres per day in January before dropping further to 1.6 million litres per day in February. Supplies later recovered to 2.1 million litres per day in March, increased to 3.0 million litres per day in April, rose further to 4.3 million litres per day in May before declining to 2.5 million litres per day in June.
Month-on-month data also showed that average ATK receipts dropped from 3.6 million litres per day in May to 2.5 million litres per day in June, representing a decline of approximately 31 per cent.
An analysis of the NMDPRA data showed that ATK receipts increased from 1.3 million litres per day in June 2025 to 1.5 million litres per day in July, an increase of 0.2 million litres per day or 15.4 per cent.
Supplies then surged to 3.5 million litres per day in August, representing a sharp increase of 2.0 million litres per day or 133.3 per cent over July. However, receipts declined to 1.6 million litres per day in September, a drop of 1.9 million litres per day or 54.3 per cent, before recovering to 2.7 million litres per day in October, reflecting an increase of 1.1 million litres per day or 68.8 per cent.
No domestic refinery receipts were recorded in November 2025, indicating a 100 per cent decline from October’s level. Supply rebounded strongly in December 2025, when domestic refinery receipts climbed to 14.0 million litres per day, the highest level during the review period.
Although a percentage comparison could not be made because no receipts were recorded in November, the December figure represented an increase of 14.0 million litres per day.
Receipts then fell sharply to 6.0 million litres per day in January 2026, a decrease of 8.0 million litres per day or 57.1 per cent, before dropping further to 1.6 million litres per day in February, down by 4.4 million litres per day or 73.3 per cent.
Supplies recovered modestly to 2.1 million litres per day in March, an increase of 0.5 million litres per day or 31.3 per cent, rose to 3.0 million litres per day in April, up by 0.9 million litres per day or 42.9 per cent, and increased further to 4.3 million litres per day in May, representing a gain of 1.3 million litres per day or 43.3 per cent.
However, the upward trend reversed in June 2026, as domestic refinery receipts fell from 4.3 million litres per day in May to 2.5 million litres per day, a decline of 1.8 million litres per day or 41.9 per cent.
Throughout the 13 months, no aviation fuel imports by Oil Marketing Companies were recorded, indicating that 100 per cent of Nigeria’s reported ATK receipts came from domestic refineries.
Industry data further showed that aviation fuel consumption remained relatively stable despite fluctuations in refinery receipts.
Consumption stood at 3.5 million litres per day in January before declining to 2.9 million litres per day in February. It fell further to 2.1 million litres per day in March before rising to 2.5 million litres per day in April and increasing to 3.1 million litres per day in May. Consumption moderated again to 2.9 million litres per day in June, representing a six per cent decline compared to the previous month.
The latest NMDPRA daily consumption figures also showed that aviation fuel demand averaged about 2.9 million litres per day, close to the country’s 2026 benchmark demand of three million litres daily.
The regulator noted that petroleum product consumption figures are based on volumes trucked into the domestic market.
The report also showed that ATK supply rose from 2.6 million litres per day in April to 3.6 million litres per day in May, representing an increase of about 38.5 per cent during that reporting cycle.
The disappearance of aviation fuel imports underscores the growing contribution of domestic refining following the commencement and expansion of operations at new and rehabilitated refineries across the country.
For years, Nigeria depended almost entirely on imported aviation fuel, exposing airlines to exchange rate volatility, high logistics costs and periodic supply disruptions. The growing role of local refineries is expected to improve product availability, shorten supply chains and reduce the country’s dependence on imported petroleum products.
The development also aligns with the Federal Government’s broader objective of achieving energy security through increased domestic refining capacity while conserving foreign exchange previously spent on importing refined petroleum products.
Although monthly refinery receipts remained volatile, the absence of imported ATK throughout the review period suggests that local production has become sufficiently established to support Nigeria’s aviation fuel requirements, with consumption largely hovering around the country’s daily benchmark demand of three million litres.
The development comes against the backdrop of a sharp increase in aviation fuel prices that recently pushed up the cost of air travel in Nigeria.
In March 2026, Jet A-1 prices rose from about N900 per litre in January to N2,557 per litre by the end of March, representing an increase of 184 per cent. The surge, which was linked to disruptions in the global oil market following the Middle East crisis, placed significant pressure on airlines because aviation fuel accounts for about 40 per cent of their operating costs.
Although intense competition initially prevented carriers from immediately passing the higher cost to passengers, domestic airfares later rose to N200,000 and above for one-hour, one-way flights as Jet A-1 prices remained between N1,750 and N2,650 per litre.
The sharp increase in airfares intensified calls for a more reliable and affordable domestic supply of aviation fuel.
The latest supply figures, showing that domestic refineries accounted for all recorded ATK receipts between June 2025 and June 2026, could provide some relief to the aviation industry by reducing its exposure to imported fuel and foreign exchange volatility.
However, the significant month-to-month swings in local receipts, from a record 14 million litres per day in December 2025 to 2.5 million litres per day in June 2026, show that supply stability remains as important as domestic production.
Courtesy – The Punch
Energy
Chevron Wins a Bid in Nigeria’s 2025 Licensing Round
Star Deep Water Petroleum Limited, a Chevron company and operator of the Agbami unit, has won the bid for Petroleum Prospecting Licence (PPL) 2010 in Nigeria’s 2025 licensing round.
Biztellers reports that the winners of the bid round were announced by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, on Tuesday July 21, 2026.
“Chevron continues to evaluate high-potential exploration opportunities across our global portfolio, with Nigeria long being an important part of our business,” Kevin McLachlan, Vice President of Exploration at Chevron said. “This award reflects our disciplined approach to adding quality acreage to our portfolio.”
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“We appreciate the efforts of the Nigerian Upstream Petroleum Regulatory Commission and all stakeholders in delivering a successful licensing round,” said Jim Swartz, Chairman and Managing Director of Chevron companies in Nigeria and the Mid-Africa region. “Chevron remains committed to working collaboratively with the Nigerian government and our partners to support the development of Nigeria’s oil and gas industry and contribute to the country’s broader economic growth,” he added.
A company statement has it that the award of the PPL 2010 supports Chevron’s global exploration strategy, which combines technology-enabled exploration, disciplined portfolio management and selective entry into high-potential opportunities. Beyond Nigeria, Chevron continues to advance exploration activities across Africa while growing a global portfolio to develop the energy needed to enable human progress.
Energy
Navy Uncovers 9 Illegal Refineries in Rivers, Seizes 104,000 Litres of Stolen Crude
The Nigerian Navy has uncovered nine illegal refining sites comprising 23 dugout pits in Bonny Local Government Area of Rivers State, with 18 of the pits containing an estimated 104,000 litres of products suspected to be stolen crude oil.
The Director of Naval Information, Captain Abiodun Folorunsho, disclosed the discovery in an operational report on Tuesday in Abuja, according to the News Agency of Nigeria.
He said the sites were uncovered during an operation carried out by personnel of Forward Operating Base Bonny under Operation DELTA SENTINEL.
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The operation also neutralised five newly excavated pits that had been prepared for imminent use before they could become operational, preventing the further expansion of the illegal refining network in the area.
Folorunsho said the operation delivered a significant setback to crude oil theft syndicates operating in the Bonny area, targeting criminal infrastructure across two communities simultaneously.
“Following actionable intelligence, personnel targeted criminal infrastructure concealed within the Wakama/Bolo and Aworkiri communities. The operation denied economic saboteurs the opportunity to activate new refining locations and sustain illicit petroleum production,” he said.
“The operation dealt another major setback to crude oil theft syndicates and further reinforced the service’s resolve to safeguard Nigeria’s critical oil and gas infrastructure,” Folorunsho added.
He said eight locally fabricated refining pots and three large storage tanks were also recovered during the operation, further disrupting the criminal network’s refining capability.
“All illegal facilities and recovered products were handled in accordance with extant anti-crude oil theft procedures,” he said, adding that by targeting both active and emerging illegal refining hubs, the Navy continues to weaken the operational resilience of crude oil theft syndicates.
“The latest success highlights the Nigerian Navy’s determination not only to disrupt illegal refining activities, but also to prevent criminal networks from rebuilding their infrastructure. By targeting both active and emerging illegal refining hubs, the service continues to weaken the operational resilience of crude oil theft syndicates and protecting Nigeria’s economic interests,” he said.





