Nigeria plans frequent oil licensing rounds to boost production

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) plans to implement annual or even biannual oil licensing rounds to boost the country’s crude production. NUPRC Chief Executive Oritsemeyiwa Eyesan stated that the commission aims to maintain a strict cycle with a six to seven-month turnaround time to encourage market activity.

The strategy seeks to increase output from current levels of approximately 1.5 million barrels per day (bpd) toward a long-term goal of 4 million bpd. To achieve this, the regulator is introducing “drill-or-drop” clauses designed to prevent passive ownership and discourage idle concessions. The commission is also targeting new operators rather than the international majors that have recently exited several onshore fields.

A recent bid round is projected to add 300,000 bpd within three years, and the regulator expects future rounds to replicate or exceed this. A new round of auctions is expected to open by early October. Additionally, the commission supports plans to route all domestic crude to local refiners, such as the Dangote refinery, by 2030.