Energy
NUPRC Aims for 5.13bn Barrels Deepwater Oil Reserves
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) aims to unlock 5.13 billion barrels of deepwater oil reserves, with a goal to boost Nigeria’s oil production by an additional 810,000 barrels per day (bpd).
According to Chief Executive of the NUPRC, Gbenga Komolafe, Nigeria aims to rejuvenate its offshore oil production and reinforce its standing as a key player in the global energy landscape.
He bared his mind at a stakeholders’ workshop on deep/shallow water cluster/nodal development in Abuja on Thursday.
Komolafe who was represented by the executive commissioner for Economic Regulation and Strategic Planning, Babajide Fashina, said the plan was conceived in response to the industry’s dwindling offshore output and the need to harness untapped reserves for sustainable growth.
ALSO READ: Okpebholo’s Construction Palliatives Reach Edo North
He highlighted the significant untapped potential within the country’s deepwater fields. While Nigeria’s offshore exploration has been successful with major fields such as Banga, Agbami, Erha, and Egina, deepwater production has declined from its 2016 peak of 800,000 bpd to less than 500,000 bpd, currently contributing about 26 per cent of total national output.
“The data shows more than 5.13 billion barrels of oil and 13.53 trillion cubic feet of natural gas remain undeveloped in our deepwater reserves,” Komolafe said. “Embedded in this are 3.59 billion barrels of proven and probable oil and condensate reserves along with approximately 13.53 trillion cubic feet of non-associated gas.”
To capitalise on this vast opportunity, NUPRC has set up the Shallow and Deepwater Cluster Development Committee, tasked with working alongside operators like Star Deepwater, ESSO, Nigeria Agip Exploration, Shell Nigeria Exploration and Production Company, and Total Energies to accelerate cluster or nodal developments in deepwater fields.
Execution of approved Field Development Plans (FDPs) alone could yield an increase of up to 810,000 bpd in peak production.
Currently, Nigeria averages 1.75 million barrels per day in oil and condensate output, which falls short of the technical potential of 2.2 million bpd. The Commission called on industry stakeholders to intensify collaboration and innovation to bridge this production gap.
“The Commission is committed to unlocking these deepwater resources in a safe, productive, and sustainable manner to secure our nation’s energy future and economic prosperity,” Komolafe said.
The event was themed, “Harnessing the potential of deep/shallow water, oil and gas accumulations through clusters/nodal development in Nigeria.”
“At the peak of our deepwater oil production in 2016, Nigeria was producing about 800,000 barrels of oil per day. Sadly, that figure has now dropped to below 500,000 barrels per day,” he said.
“Our data shows that we have over 5.13 billion barrels of oil and 13.53 trillion cubic feet of gas still sitting untapped in our deepwater acreages. Of this, 3.59 billion barrels fall under 2P reserves, meaning they are proven and probable but yet undeveloped,” Komolafe explained.
He disclosed that a preliminary regulatory deep-dive through the Field Development Plan approvals indicates that current developments-in-view could unlock around 1.55 billion barrels of oil and condensate and another 1.49 trillion cubic feet of associated gas.
“Once these approved FDPs are executed, we could see peak oil production rise by as much as 810,000 barrels of oil per day. The question we must ask is: what’s holding us back, and how can we overcome the barriers together?” he queried.
The Commission boss said a new Shallow and Deepwater Cluster Development Committee had been inaugurated within the NUPRC to work closely with international oil companies and indigenous producers to identify and mature these opportunities.
“Our goal is not just more production, but more value. Through this collaborative approach, we want to maximise returns from existing assets, ramp up volumes, and reduce unit technical costs,” he noted.
Komolafe lamented that deepwater fields, despite their huge potential, had become underutilised due to challenges such as funding gaps, infrastructure limitations, regulatory bottlenecks and delayed project sanctions.
“Our eight FPSOs, Floating Production Storage and Offloading units, are grossly underutilised today. We can do more if we work together,” he said.
He added that deep offshore reserves currently account for 18 per cent of Nigeria’s total oil and condensate reserves, with major discoveries such as Bonga, Agbami, Egina, and Erha fields leading the way.
“Today, we have cumulatively produced over 4.4 billion barrels from our deepwater operations, thanks to companies like Shell, ExxonMobil, TotalEnergies, Agip and Chevron. But we must now move beyond the past and look toward unlocking future barrels,” Komolafe said.
While commending industry stakeholders for their cooperation, he stressed the need for faster project development timelines, saying: “It is time for kinetic interventions, practical steps that will bring results, not more rhetoric.”
The NUPRC boss also disclosed that Nigeria’s average year-to-date crude oil and condensate production currently stands at 1.75 million barrels per day, which is below the country’s technical potential of 2.2 million bpd.
“We believe Nigeria can do much more. This cluster development framework is a realistic step toward bridging the gap and achieving our production targets,” he said.
Komolafe urged operators to embrace the Commission’s collaborative model and commit to delivering results that would drive energy security, economic stability, and prosperity for all stakeholders.
“It’s not just about barrels; it’s about shared value creation. Through strategic development of our shallow and deepwater assets, we can lift the entire economy,” he added.
In his technical presentation, the Executive Commissioner for Development and Production at NUPRC, Enorense Amadasu, said unlocking the production would rely on executing already-approved Field Development Plans and adopting new cost-saving frameworks.
“Execution of the approved development plans in deep offshore fields is expected to bring in an additional 810,000 barrels per day,” Amadasu stated. “This is not just theoretical. We already have projects like Bonga North that have taken Final Investment Decisions, and several more are in view—Owowo, Zaba Zaba, Eta, NAE, and others.”
Amadasu noted that while Nigeria has offered 31 deepwater blocks between 2022 and 2024, including seven deep offshore blocks in the 2022 mini-bid round and 24 licenses with two continental shelf awards in 2024, actual production volumes have failed to reflect the potential.
He said multiple challenges including high technology costs, uneconomic standalone developments, and delays in Final Investment Decisions have slowed progress.
“Suboptimal project economics mean that many of these assets are not viable if developed in isolation. That’s why we’re pushing for cluster or nodal development, where operators collaborate to share infrastructure, reduce cost, and deliver value,” he explained.
The NUPRC has already set up a Deepwater Cluster Development Committee, made up of technical and commercial experts, to identify viable groupings of assets and map out a path toward joint development. According to Amadasu, a wider industry-wide committee will be inaugurated soon with subcommittees focused on infrastructure, subsurface validation, economics, and policy needs.
“We have identified over 20 key deepwater assets, Owowo, Nsiko, Bolia, Aparo, Bonga South West, Doro, Sheki, Akpo West, and others. While some may lack scale individually, they can become viable if developed together,” he said.
On government incentives, Amadasu cited ongoing interventions, including zero hydrocarbon tax on deepwater fields under the Petroleum Industry Act, as well as Presidential Directives 40, 41 and 42. These directives respectively addressed tax incentives for non-associated gas, accelerated local content compliance, and cost reductions in contracting cycles.
“Despite fiscal reliefs such as zero per cent hydrocarbon tax on deepwater assets and reduced rates for other lease types, 15 per cent for PPLs and 30 per cent for BMLs, we still haven’t unlocked the full value,” he said. “That’s why this collaborative workshop is critical.”
“Let’s be honest, without deepwater volumes, we cannot lift our national production. If we don’t act now, in the next five years, we’ll struggle badly as an upstream nation,” he warned.
New crude grade variants, Utapate and Cawthorne, have boosted Nigeria’s crude oil production by 12.16 million barrels.
The crude grades, introduced in 2024 and early 2026, represent the latest additions to the country’s basket of crude oil grades aimed at expanding export streams and strengthening oil revenues.
Data contained in the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) monthly crude and condensate production, indicated that the Utapate crude grade produced a total of 8.75 million barrels between January and May 2026, while the newly introduced Cawthorne blend contributed 3.41 million barrels during the same period, bringing the combined output from both crude grades to approximately 12.16 million barrels.
The data also showed that Utapate has yet to achieve its projected output target announced by the government, even as production remained more than 20,000 barrels per day below the 80,000 bpd target set by operators.
The figures showed that Utapate recorded an average daily production of 55,190 barrels in January. Based on the 31-day month, this translated to a total monthly output of 1.71 million barrels.
Output increased to 57,970 barrels per day in February, yielding about 1.62 million barrels, before rising marginally to 58,020 barrels daily in March, equivalent to roughly 1.80 million barrels.
In April, the field attained its highest daily production level of 59,290 barrels, producing an estimated 1.78 million barrels during the month. Production moderated slightly to 59,170 barrels per day in May but still generated approximately 1.83 million barrels due to the longer calendar month.
However, despite the upward trend, the data indicated that Utapate remained significantly below the 80,000 barrels-per-day target. The field fell short by 24,810 barrels daily in January, 22,030 barrels in February, and 21,980 barrels in March.
The production gap narrowed to 20,710 barrels per day in April before widening marginally to 20,830 barrels in May.
The development suggests that although operators have made progress in scaling up production, the ambitious target announced earlier by the Nigerian National Petroleum Company Limited has yet to be realised.
The Utapate field, which commenced production in May 2024, had been projected to achieve 80,000 barrels per day by the end of 2025.
The Utapate crude blend was introduced into the international market by the NNPC Ltd and its partner, Sterling Oil Exploration and Energy Production Company Limited, following the lifting of the maiden cargo of 950,000 barrels destined for Spain.
Produced from Oil Mining Lease 13 in Akwa Ibom State, the crude grade possesses characteristics that have attracted international interest. It has a sulphur content of 0.0655 percent and a relatively low carbon footprint resulting from flare gas elimination.
Meanwhile, another emerging crude stream, Cawthorne, contributed 3.41 million barrels to Nigeria’s production between January and May, according to the NUPRC data.
The figures showed that Cawthorne’s average daily production rose sharply from 12,340 barrels in January to 16,450 barrels in February and 23,970 barrels in March. The field sustained the momentum in April, reaching 30,970 barrels per day before easing slightly to 28,940 barrels daily in May.
The monthly production volumes translated to 382,540 barrels in January, 460,600 barrels in February, 743,070 barrels in March, 929,100 barrels in April and 897,140 barrels in May.
The NNPC Ltd had recently announced the commencement of exports from the Cawthorne blend, describing the development as part of efforts to increase Nigeria’s crude oil production and strengthen the country’s position in the global energy market.
In a statement, the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, said the first cargo of the new grade was lifted aboard the MT Eburones vessel for shipment to the Netherlands.
“The Nigerian National Petroleum Company Limited has commenced export of its new crude grade, Cawthorne, marking a significant milestone in the company’s drive to increase Nigeria’s crude oil production and expand its portfolio of globally competitive export streams,” Odeh said.
He added, “Cawthorne blend crude, the latest addition to Nigeria’s basket of crude grades, has an API gravity of 36.4, placing it firmly within the light, sweet category, comparable to Bonny Light, and highly valued in the global market for its superior petrol and diesel yields.”
According to him, the maiden cargo, estimated at 950,000 barrels, was exported through the Cawthorne Floating Storage and Offloading vessel located offshore Bonny, Rivers State.
“The cargo was exported via the Cawthorne Floating Storage and Offloading vessel, which is strategically located offshore Bonny. The facility enhances crude evacuation from OML 18 and strengthens Nigeria’s export reliability, operational efficiency and overall energy security,” Odeh stated.
The emergence of both Utapate and Cawthorne underscores Nigeria’s determination to diversify its crude export portfolio and maximise oil earnings. However, the latest NUPRC figures also highlight the operational challenges facing producers as they strive to convert ambitious output targets into actual barrels.
Combined, Utapate and Cawthorne contributed an estimated 12.16 million barrels of crude oil between January and May, providing additional support to Nigeria’s broader efforts to sustain production growth and improve foreign exchange earnings from the oil sector.
On Thursday, the NUPRC reported that Nigeria’s crude oil production rose above its Organisation of the Petroleum Exporting Countries quota in May 2026, with the country recording its highest crude output in 15 months amid improved operational stability and the absence of major disruptions across key oil facilities.
Data released showed that Nigeria produced an average of 1,530,354 barrels of crude oil per day in May, representing 102 per cent of the country’s 1.5 million barrels-per-day quota approved by OPEC.
When condensate production of 170,446 barrels per day was added, Nigeria’s total oil output climbed to 1,700,800 barrels per day, further strengthening the country’s position as Africa’s largest oil producer and boosting revenue.
OPEC oil output in May hit its lowest in more than two decades, a Reuters survey found, as a U.S. naval blockade cut Iran’s exports and Iran’s effective closure of the Strait of Hormuz slashed exports by other Gulf producers.
Output by the 11-member Organization of the Petroleum Exporting Countries fell by 1.06 million barrels per day month-on-month to 16.13 million bpd, the survey found.
That was the lowest monthly figure since at least 2000, according to Reuters surveys, and well below the levels seen during the COVID-19 pandemic in 2020 when demand collapsed.
The figures exclude the United Arab Emirates which quit OPEC as of May 1.
ALSO READ: Dangote Foundation Distributes Rice to Cement Host Communities in Ogun
Saudi Arabia had a further decline, although Iraq was able to increase supply due to increased domestic use, sources in the survey said.
Venezuela and Nigeria also pumped more.
Eight members of the OPEC+ producer group, which includes OPEC plus allies including Russia, had agreed to raise production in May, but the Iran war and U.S. blockade made that impossible.
The Reuters survey is based on flow data from financial group LSEG, information from other companies that track flows, such as Kpler, and information provided by sources at oil companies, OPEC and consultants.
Credit – Times of India
Shell Nigeria Gas (SNG) shared its experiences in pioneering gas distribution nearly 30 years ago, and identified the expansion of pipeline natural gas infrastructure and the market‑making role of gas distributors as critical in moving gas from a policy aspiration to a practical energy solution for Nigerian industries.
“When SNG started in Agbara–Ota over 20 years ago, demand was nowhere near what it is today,” recalled Managing Director Ralph Gbobo at a panel session on “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand” at the 2nd business forum of the Association of Local Distributors of Gas (ALDG) in Abuja late last week.
Represented by Head, Gas Distribution, Chukwuka Amos-Ejesi, Raph said: “The economics was not perfect, but there was a leap of faith anchored on Nigeria’s industrialisation trajectory. That decision has proven right.”
He said SNG’s persistence proved that when demand ambition, supply certainty, enabling infrastructure, and commercial clarity come together, even if not perfectly at the start, it creates industrial clusters that can grow and attract long-term capital. “Sustainability and bankability emerge over time, as utilization deepens and confidence builds,” he pointed out.
ALSO READ: Africa’s Largest Bank Backs Dangote Refinery’s IPO
The theme of the forum was “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” with industry leaders and other stakeholders discussing the use of gas to drive industrialisation. The panel session agreed on the need for “clear, supportive and credible policy frameworks, especially measures designed to improve the use of gas.
Ralph noted: “The introduction of gas-focused policies, notably the Petroleum Industry Act, marked a turning point. By reinforcing the role of gas in Nigeria’s energy and industrial strategy and embedding instruments such as the Network Code- a critical framework that governs the operations of the Domestic Gas market and ensures transparency and stability, and the Domestic Gas Supply Obligation which compels gas producers to allocate gas to the domestic market, the PIA significantly reduced policy ambiguity around gas development.”
He added: “The introduction of clearer pricing frameworks for gas supply and transportation and a more transparent and competitive licensing regime, has also strengthened market confidence. Together, these measures have improved producer confidence, particularly for domestic gas projects, and signaled the government’s strong commitment to gas as a driver of industrial development.”
Incorporated in 1998 as a fully Shell-owned gas distribution company, SNG currently serves over 150 clients in Abia, Bayelsa, Ogun and Rivers states, partnering with governments and other stakeholders to take the cleaner and more affordable energy to the doorsteps of industries. In the first half of this year alone, the company has connected two additional companies in Ogun State to its gas distribution network.
Photo Caption – L–R: Chairman, Association of Local Distributors of Gas (ALDG), and Managing Director, Axxela Gas Distribution, Kehinde Alabi; and Head of Gas Distribution, Shell Nigeria Gas, Chukwuka Amos-Ejesi, receiving a commendation plaque on behalf of SNG Managing Director, Ralph Gbobo, in recognition of his professional and diligent service on the Governing Board of the Association, at the Association of Local Distributors of Gas (ALDG) Business Forum in Abuja
Edo Queens Clinch Second NWFL Premiership Title
NGX Poised for Dollar Denominated DPRP IPO, Pioneer African Exchanges Linkage Project
SERAP Sues NNPC Ltd over ₦5.9bn Incorporation, Rebranding Expense
Osun Accuses MURIC of Misinformation Campaign
Why NYSC Stopped Orientation Exercise for Corps Members in Niger State
Nigeria’s Crude Output Grows to 12m Barrels on Utapate, Cawthorne
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
83sapf
6rxgmo
xi63f6
F*ckin’ remarkable things here. I am very glad to see your post. Thanks a lot and i’m looking forward to contact you. Will you please drop me a mail?
I like this weblog very much, Its a very nice billet to read and incur information.
I wish to show my affection for your generosity in support of men and women who have the need for help on this one concept. Your special dedication to passing the message up and down had been particularly significant and have constantly allowed some individuals much like me to attain their goals. Your own invaluable guide means much to me and much more to my colleagues. With thanks; from all of us.
Youre so cool! I dont suppose Ive read something like this before. So nice to search out any person with some authentic ideas on this subject. realy thanks for beginning this up. this website is something that’s needed on the internet, somebody with just a little originality. helpful job for bringing one thing new to the internet!
Hello my friend! I wish to say that this article is amazing, nice written and include almost all significant infos. I¦d like to peer extra posts like this .
I truly enjoy reading on this website , it contains great content. “The longing to produce great inspirations didn’t produce anything but more longing.” by Sophie Kerr.
Hello.This article was really remarkable, particularly because I was searching for thoughts on this matter last Monday.
Hi, I think your website might be having browser compatibility issues. When I look at your website in Ie, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, very good blog!
Great write-up, I am regular visitor of one’s site, maintain up the excellent operate, and It is going to be a regular visitor for a lengthy time.
Utterly pent articles, thanks for selective information. “The last time I saw him he was walking down Lover’s Lane holding his own hand.” by Fred Allen.
You have remarked very interesting points! ps nice web site. “I didn’t attend the funeral, but I sent a nice letter saying that I approved of it.” by Mark Twain.
Hello there, just became alert to your blog through Google, and found that it’s truly informative. I am gonna watch out for brussels. I’ll be grateful if you continue this in future. Many people will be benefited from your writing. Cheers!
I have been exploring for a bit for any high-quality articles or blog posts on this kind of space . Exploring in Yahoo I eventually stumbled upon this web site. Studying this information So i¦m satisfied to exhibit that I’ve a very excellent uncanny feeling I found out exactly what I needed. I such a lot indisputably will make certain to do not overlook this website and give it a look on a continuing basis.
I don’t even know how I ended up here, but I thought this post was great. I do not know who you are but certainly you are going to a famous blogger if you are not already 😉 Cheers!