Nigeria aims to increase its crude oil production by 810,000 barrels per day through a new initiative targeting deepwater fields, a move set to bolster national revenue and strengthen its OPEC+ standing. The plan, led by the Nigerian Upstream Petroleum Regulatory Commission, seeks to revive offshore production, which has declined in recent years, impacting states like Rivers with significant oil interests.
The commission’s cluster and nodal development strategy promotes collaboration among operators to share infrastructure, reduce costs, and unlock untapped reserves. Nigeria’s deepwater fields hold over 5.13 billion barrels of oil and 13.53 trillion cubic feet of gas, with 3.59 billion barrels classified as proven but undeveloped. Approved field development plans could yield 1.55 billion barrels of oil and condensate, plus 1.49 trillion cubic feet of gas, significantly enhancing output.
At a recent stakeholders’ workshop in Abuja, the commission’s chief, represented by a senior official, highlighted the urgency of addressing production challenges. Nigeria’s current output of 1.75 million barrels per day falls short of its 2.2 million barrel potential. The initiative targets assets like Bonga South West and Owowo, which could become viable through joint development. A dedicated committee will guide this process, focusing on infrastructure and economic viability.
Also Read: Aliko Dangote Steps Down as Dangote Cement Chairman, Shifts Focus to Refinery
The decline in deepwater production, from 800,000 barrels per day in 2016 to below 500,000 today, stems from high costs, funding gaps, and delayed investment decisions. To counter this, the government offers incentives like zero hydrocarbon tax under the Petroleum Industry Act, attracting interest from companies such as ExxonMobil, which plans a $1.5 billion investment by 2027. This could benefit oil-dependent regions by boosting federal allocations.
Analysts see the plan as a step toward energy security and economic growth, particularly for states reliant on oil revenue. However, challenges like regulatory hurdles and global market volatility remain. As Nigeria pushes for higher output, collaboration between operators and sustained investment will be key to unlocking its deepwater potential and driving prosperity.
