FG targets additional 300,000bpd oil production with 2026 bid round
Federal Government Offers 37 Blocks Amid Plans to Boost Oil Production
By Udeme Akpan and Obas Esiedesa
ABUJA—The Federal Government has announced its intentions for the ongoing 2025 Licensing Round, aiming to yield an additional 300,000 barrels per day (bpd) of crude oil and condensate production within the next three years.
At the Commercial Bid Conference held yesterday, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, stated that these new production levels would assist in the government’s goal of increasing national oil output to three million bpd by 2030.
“The assets available in this licensing round have the potential to add about 500 million barrels to Nigeria’s reserves,” Eyesan remarked. Currently, Nigeria’s crude oil and condensate reserves are estimated at 37.01 billion barrels, alongside 215.19 trillion cubic feet of gas reserves.
The interest in this licensing round has been significant. Approximately 300 companies expressed interest in 50 available assets. After a prequalification process, 196 firms qualified, and 143 companies submitted 200 technical and commercial bids covering 37 assets. However, 13 blocks attracted no bids and have been returned to the licensing basket.
Eyesan noted, “Some of these assets are in frontier basins; they have not yet been de-risked. We were not surprised when we saw that some of these assets returned with no bidders. We will do more work to de-risk these assets and bring them back to the market.”
The Chief Executive emphasized that the licensing process, following President Bola Tinubu’s directive, aims to ensure transparency and adherence to international best practices. The selection of winning bids will be based on a combination of technical and commercial scores rather than the highest signature bonus.
“Our message is clear: drill or drop. Work programs must be implemented, financial commitments honored, and agreed milestones achieved,” she stated.
Additionally, Eyesan announced that President Tinubu has approved another licensing round for 2026, indicating that successful bidders will have 90 days to fulfill post-award conditions or risk forfeiting their licenses.
In response, Mazi Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), commented that increased upstream investments could lead to higher production. Nigeria’s current production is about 1.7 million bpd, including condensate.
“The Federal Government’s ₦68.32 trillion 2026 budget is based on a crude oil production target of 1.84 million bpd. With ongoing investments and the successful execution of projects, Nigeria is expected to see significant improvements in oil production over time,” Obasi added.
Petroleum economist Prof. Iledare Wumi expressed a measured optimism regarding the government’s initiatives, stating, “My reaction is one of cautious optimism. Nigeria is not visionless; rather, it has been execution-deficient. Transformational leadership and sustained execution are key to turning vision into reality.”
