NNPC, NUPRC Hailed As $20bn Gas Deals, Oil Production Surge

The leadership of the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has received commendation for what has been described as significant progress in boosting oil production, attracting investments and restoring confidence in Nigeria’s petroleum industry.

The Citizens Forum for Energy Accountability and Development (CFEAD) said recent developments in the sector showed that sustained reforms and improved operational efficiency could help reposition Nigeria’s oil and gas industry as a major contributor to economic growth.

In a statement issued on Thursday by its Executive Director, Patriot Unazi Gideon, the group highlighted the more than $20 billion worth of gas sale and purchase agreements secured by NNPC within the past year as a major indication of renewed investor confidence in Nigeria’s energy market.

Gideon said the agreements, which cover 1.29 billion standard cubic feet per day of long-term LNG feed gas and 750 million standard cubic feet per day of domestic industrial gas supply to DFL FZE and Dangote Refinery, demonstrated the growing commercial potential of the sector.

He noted that seven additional transactions were also in the pipeline, describing the development as a positive signal to international investors seeking long-term opportunities in Nigeria.

CFEAD also commended NNPC for cutting operating costs by $3.4 billion through contract restructuring and optimisation, while crude oil production reportedly increased by six per cent and gas production by 8.1 per cent.

The group particularly welcomed the reported rise in crude oil production to approximately 1.71 million barrels per day, describing it as the highest level recorded in five years.

According to the organisation, higher crude production could strengthen government revenue, support public infrastructure, create employment opportunities and improve economic stability.

It further highlighted NNPC Exploration and Production Limited’s record output of 365,000 barrels per day and an average 98 per cent recovery rate recorded across NNPC’s five crude oil export terminals between April 2025 and May 2026.

CFEAD said the figures demonstrated that greater operational efficiency could help recover value previously lost to production disruptions, infrastructure challenges and inefficient processes.

The organisation also praised the NUPRC for implementing measures aimed at attracting fresh investments into Nigeria’s deep offshore oil and gas sector.

It specifically cited the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026, which the commission said could attract approximately $50 billion in investments and increase crude oil and condensate production by an additional one million barrels per day in the coming years.

CFEAD said the policy could unlock major offshore projects that had remained undeveloped because of their high capital requirements and lengthy investment cycles.

The group identified the $10 billion Bonga South project, expected to begin production in 2027, as an example of the scale of investment that could emerge from a more predictable regulatory environment.

It added that major offshore projects could generate wider benefits for Nigeria through the development of the marine economy, logistics, engineering, technology transfer and local skills.

However, CFEAD stressed that the ultimate measure of the petroleum reforms should be their impact on ordinary Nigerians, arguing that increased production should translate into higher government revenue, job creation, improved energy security and greater industrial activity.

The organisation urged oil-producing communities, operators, investors, security agencies and other stakeholders to support efforts to increase production and attract additional investments into the sector.

It also called on the Federal Government to sustain and deepen reforms across the petroleum value chain while maintaining an environment capable of attracting long-term investment.

CFEAD further urged NNPC and NUPRC to improve public communication about their achievements, noting that greater understanding and confidence among Nigerians would be important to sustaining support for ongoing reforms.