Nigeria is preparing to open bids for 31 onshore and offshore oil and gas blocks in a strategic move to increase oil output and attract new investments, as announced by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“These 31 oil and gas blocs have been carefully selected for their potential to boost our reserves and stimulate economic activities,” said Enorense Amadasu, executive commissioner of development and production at the NUPRC, speaking at an event in Nigeria’s commercial capital.
Amadasu added that further details on the bidding timeline would be released soon.
According to the NUPRC, Nigeria’s current production rate, including crude oil and condensates, has reached 1.8 million barrels per day (bpd), up from 1.54 million bpd in September, with ambitions to increase this figure to 2 million bpd by year-end.
Amadasu attributed the anticipated growth to improved security around oil infrastructure and new incentives aimed at attracting investors.
However, Nigeria’s increased production ambitions could pose a challenge to its OPEC+ production cap of 1.5 million bpd of crude.
While the 23-member OPEC+ alliance aims to limit global oil supply to stabilise prices, Nigeria’s target output of 2 million bpd, which includes condensates, may exceed its cap.
Nigeria’s government is focused on revitalising its energy sector after years of underinvestment, theft, and vandalism, particularly in the Niger Delta, which has hindered the country’s ability to meet its production goals.
To address these challenges, President Bola Tinubu’s administration has introduced new incentives, including tax breaks for producers and streamlined asset sales, to encourage both domestic and foreign investment.
The decision to auction the 31 oil blocks is part of broader economic reforms aimed at enhancing local production capacity and generating jobs in the energy sector.
Industry experts believe that these efforts, combined with ongoing improvements in security, could enable Nigeria to regain its standing as a leading oil producer within OPEC+. The NUPRC has emphasised that while complying with OPEC+ guidelines is a priority, it is equally committed to maximising Nigeria’s energy potential to drive long-term economic growth.
