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NUPRC: Nigeria’s Crude Oil Production Rose 10% Y-o-Y to 1.71m Bpd in July

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Nembe Oil Spill: NUPRC Describes NOSDRA’s Allegations as Unfounded

 

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that Nigeria’s oil output recorded a significant growth in July 2025, averaging 1.71 million barrels per day, a 9.9 percent year-on-year surge from the 1.56 million bpd produced in July 2024.

This was contained in a statement in Abuja on Monday, in which the commission explained that the figure comprised 1.507 million bpd of crude oil and 204,864 bpd of condensates.

“This reflects a 9.9 percent year-on-year surge from the 1.56 million bpd produced in July 2024, which included 1.33 million bpd of crude oil and 226,866 bpd of condensates”, the organisation wrote in the statement.

On a month-on-month basis, output rose by 0.89 percent compared to the 1.69 million bpd recorded in June 2025, which comprised 1.505 million bpd of crude oil and 191,572 bpd of condensates, the commission added.

On the monthly performance of Nigeria’s crude oil terminals, Forcados recorded the highest output in July 2025 with 9.04 million barrels, representing a 2.1 per cent increase from 8.85 million barrels in June.

At the Bonny terminal, production rose to 8.07 million barrels in July, a 12.7 per cent increase compared to 7.16 million barrels recorded in the previous month, the document added, while the Qua Iboe terminal pumped 4.55 million barrels in July, lower than the 5.08 million barrels produced in June.

The NUPRC noted that output from the Escravos terminal climbed by 7.1 per cent to 4.47 million barrels in July, up from 4.17 million barrels in June, while Bonga terminal delivered 3.68 million barrels during the month, reflecting a 4.2 per cent rise from the 3.53 million barrels recorded in June.

The Odudu (Amenam Blend) terminal posted a 2.9 percent growth, producing 2.12 million barrels in July compared to 2.06 million barrels the month before. Production output at the Tulja-Okwuibome terminal rose by 2.8 per cent, from 2.02 million barrels in June to 2.08 million barrels in July.

In the same vein, production at the Brass terminal, the statement said, surged by 27 per cent during the month under consideration, increasing from 877,975 barrels in June 2024 to 1.12 million barrels in July.

Recall that Nigeria’s 2025 federal budget is built on an oil benchmark price of about $75 per barrel and a production target of 2.06 million, a target the federal government is yet to meet this year.

Meanwhile, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bayo Ojulari, has expressed the view that specialised international and continental gangs take advantage of security gaps to steal the crude from Nigeria and across Africa.

Ojulari shared this view at the opening of the Africa Chiefs of Defence Staff Conference held in Abuja, where he maintained that crude oil theft has continental and international dimensions and should be tackled holistically through collaboration and synergy among various military formations across Africa.

“Crude theft and its attendant illegal activities are by no means a purely localised occurrence; rather, these operations involve specialised international syndicates that take advantage of gaps within the state, national and continental security architecture to conduct illegal activities,” he said.

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Ojulari, however, declared that crude theft and pipeline vandalism, especially within the oil-rich Niger Delta area of Nigeria, have been largely resolved because of the efforts of security agencies.

“Security forms a key pillar of the energy business and therefore plays a very important and strategic role in achieving national, regional and continental energy security goals,” he added, noting that as head of the largest national oil company on the continent, “we have seen the benefit of the collaboration within the energy space, with significant improvement in our operating environment”.

The NNPC GCEO also stated that, “The dilapidating impact of crude theft, low pipeline availability and attacks are issues that have become stories of the past for us. These have come from the immense and intentional efforts of our government agencies across the nation and, in particular, within the Niger Delta.

“Today, I can proudly report to you all that our pipelines and terminals’ receipt of crude oil, which was somewhere as low as 20 per cent to 30 per cent, that we are attaining close to 100 per cent due to the support of the security forces and the intelligence agencies.”

Besides, Ojulari said continental forums such as the gathering should be encouraged to strengthen strategic activities within the continent of Africa.

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Energy

Nigeria’s Q1 Gas Production Increases to 687bscf, Flaring Drops 8%

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Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria’s gas production rose by about 3 percent in the first quarter of 2026, while gas flaring declined by over 8 percent year-on-year.

An analysis of the commission’s gas production status reports for the first three months of 2025 and 2026 revealed that total gas output increased from 667.27 Billion Standard Cubic Feet (BSCF) in Q1 2025 to 687.09 billion scf in Q1 2026.

The increase of approximately 19.81 billion standard cubic feet represented a year-on-year growth of about 2.97 percent, highlighting continued slow but steady expansion in Nigeria’s gas sector amid the federal government’s push to deepen gas utilisation and monetisation.

In addition, the NUPRC figures had it that January 2026 gas production stood at 233.96 billion scf, compared to 236.32 billion scf in January 2025.

However, production rebounded strongly in the subsequent months, with February 2026 output rising to 212.62 billion scf from 199.68 billion scf in February 2025.

In the same vein, March 2026 production climbed to 240.51 billion scf, compared to 231.28 billion scf recorded in March 2025, making it the highest monthly production level in the period under review.

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At the same time, the data showed marked improvement in gas flare management. Total gas flared in Q1 2025 stood at 50.95 billion scf, compared to 46.83 billion scf in Q1 2026. The reduction of about 4.12 billion scf translated to a decline of roughly 8.1 percent year-on-year.

Similarly, average flare intensity improved significantly during the period. The average gas flare rate dropped from about 7.65 percent in Q1 2025 to approximately 6.81 percent in Q1 2026, indicating that a larger proportion of produced gas was captured for productive use rather than burnt off.

In the same vein, monthly flare rates for Q1 2025 were 7.92 percent in January, 7.94 per cent in February and 7.08 percent in March. For Q1 2026, the flare rates declined to 7.34 percent in January, 6.62 percent in February and 6.48 percent in March.

The data also revealed a significant shift in the structure of Nigeria’s gas production. Associated gas production, which is gas produced alongside crude oil, declined during the review period.

Total associated gas output fell from 370.28 billion standard cubic feet in Q1 2025 to 332.82 billion standard cubic feet in Q1 2026. In contrast, non-associated gas production recorded substantial growth.

Non-associated gas output increased from 296.99 billion standard cubic feet in Q1 2025 to 354.17 billion standard cubic feet in Q1 2026, suggesting increased contribution from standalone gas projects and dedicated gas developments, rather than reliance on oil-linked gas production.

Also, export gas sales recorded one of the strongest improvements during the quarter. The NUPRC data showed that export gas sales rose from 223.99 billion standard cubic feet in Q1 2025 to 292.87 billion standard cubic feet in Q1 2026.

This represented an increase of about 68.89 billion standard cubic feet or approximately 30.75 percent year-on-year. Findings show that the increase was likely driven by stronger Liquefied Natural Gas (LNG) export performance and improved international demand for Nigerian gas supplies.

However, domestic gas sales weakened slightly during the same period. Domestic sales declined from 186.98 billion standard cubic feet in Q1 2025 to 171.15 billion standard cubic feet in Q1 2026, representing a drop of roughly 8.5 percent.

This raised concerns regarding the adequacy of gas supply to Nigeria’s domestic market, especially for power generation and industrial use. Despite the decline in domestic sales, gas utilisation efficiency improved marginally due to lower flare volumes.

The improved flare metrics suggested that operators were more efficient in capturing and commercialising produced gas. According to the data, total utilised gas stood at 639.91 billion scf in Q1 2025 and 639.68 billion scf in Q1 2026, indicating relatively stable utilisation volumes despite higher production.

With proven gas reserves estimated at about 215.19 trillion cubic feet (TCF), Nigeria has in recent years increasingly prioritised natural gas as a transition fuel capable of supporting domestic energy needs, industrial growth, petrochemical expansion and export earnings.

The federal government has also intensified efforts to reduce routine gas flaring through stricter regulatory enforcement and commercialisation initiatives targeted at flare gas recovery, especially through the Nigerian Gas Flare Commercialisation Programme (NGFCP).

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Energy

Renewed US-Iran Tensions Drag Oil Price Northwards

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After the United States carried out what it described as defensive strikes in southern Iran, which put fresh question marks over the fragile ceasefire and ongoing peace talks between Washington and Tehran, oil prices spiralled on Tuesday.

The world is taken aback because the strikes came in the midst of hopes that both countries were nearing an agreement to end the three-month war and reopen the Strait of Hormuz for the free movement of oil shipments.

Consequently, from about $97 per barrel on Monday, global benchmark Brent crude futures rose by roughly 3.5 percent on Tuesday to around $100 per barrel.

According to reports, US forces struck missile-launch sites and other targets in southern Iran on Monday, even as the Donald Trump administration signalled that a peace agreement between the two sides could be close.

In a statement, the US Central Command said the attacks were defensive in nature. “US forces conducted self-defense strikes in southern Iran today to protect our troops from threats posed by Iranian forces. Targets included missile launch sites and Iranian boats attempting to emplace mines,” CENTCOM spokesman Capt. Tim Hawkins said.

Reacting, Iran accused the United States of violating the ceasefire with the strikes. Iran’s Foreign Ministry said the attacks in the southern Hormozgan province, where Iranian media reported explosions early on Tuesday, amounted to a “gross violation” of the fragile ceasefire that has been in place for nearly seven weeks, according to Reuters.

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Both sides had earlier indicated progress on a memorandum of understanding that could halt the war and restore shipping activities through the Strait of Hormuz, while giving negotiators 60 days to address more contentious issues, including Iran’s nuclear programme.

Reports also indicated that Iranian negotiators had pushed for the proposed agreement to include the release of billions of dollars in frozen assets during talks held in Qatar.

The war, which began with US and Israeli strikes on Iran on February 28, has triggered a major oil supply shock, increasing the costs of fuel, fertiliser, and food globally. Iran had responded to the attacks by launching drones and missiles at Gulf states hosting US military bases.

Traffic through the Strait of Hormuz, which accounts for about one-fifth of global oil and liquefied natural gas trade, has remained significantly below normal levels since the conflict began.

Although diplomatic efforts are continuing, there are growing fears that the latest US strikes could further escalate tensions in the Middle East and disrupt global energy supplies.

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Energy

At 92% Completion, NLNG Train 7 Nears Pre-commissioning Phase

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The seventh gas liquefaction train of the Nigeria Liquefied Natural Gas (NLNG) Limited is on the verge of completion, having reached 92 percent of project stages.

The plant which aligns with existing trains at the company’s gas processing complex in Bonny Island, Rivers State, will propel Nigeria’s LNG production capacity with additional 8.0 million tons per annum (mtpa) from current 22 mtpa to 30 mpta upon completion.

Managing Director and Chief Executive Officer, NLNG, Adeleye Falade, made the revelation at a forum hosted by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos.

According to him, the $7.0 billion project driven by Saipem, Chiyoda, Daewoo continues to enjoy broad support from the presidency and industry regulators.

In a presentation delivered on his behalf at the event, Falade stated that the project has so far consumed a significant 120 million man hours out of the target 200 million man hours of mostly indigenous labour.

He also declared that the company has enhanced all safety measures on the construction site after recording two lost time on injury (LTI) incidents. He assured that the project contractors are prioritizing workplace safety as the project drives to pre-commissioning stages.

Mr Falade, whose presentation was delivered by Train 7 Project Manager, Ali Uwais, also noted that the Train 7 project has helped galvanize local investment in steel fabrication and galvanizing capabilities, pointing at the 4000 tons of steel already deployed in the project.

He also pointed to the spur effect in the domestic cable manufacturing industry, stating that all cables used in the project are manufactured in Nigeria. He, however, added that additional interventions are required to close quality gaps in the local manufacturing industry.

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In noting the urgent need for in-country standard accountabilities, Mr Falade challenged agencies and regulators in the manufacturing industry to rise to the plate of ensuring international competitiveness on product quality.’

In counting some of the interventions driven by the company to close capacity and capability gaps in the domestic industry, he noted that the NLNG is relentless in establishing centers of excellence in tertiary institutions in the country with the purpose of addressing human capacity deficits.

The Train 7 project alone, he pointed out, has facilitated the training of 13,000 Nigerians, bolstered community focused participation initiatives, and facilitated rapid infrastructure development in the host Bonny Island.

Mr Falade told the industry audience at the event that the real value of the Train 7 project must transcend site activities to capture capacity, facilities and infrastructure developed for the project.

He called on other players in the industry to contribute to building capacity, standards and quality that compete globally, adding that Train 7 proves that Nigeria can grow and develop to global standards.

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