Are you interested in acquiring an oil and gas block in Nigeria? The NUPRC is hosting the 2025 Licensing Round webinar on Wednesday, January 28, 2026 at 10am WAT. Register to attend: https://t.co/9W5W2nnQu3
“Going forward, NUPRC will be measured by faster, predictable regulatory approvals; secure and sustainable production; credible licensing and disciplined acreage performance; world-class HSE and process safety; and trusted measurement, transparency, governance, and data integrity”- Mrs Oritsemeyiwa Eyesan, Commission Chief Executive, NUPRC
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NUPRC issues 28 permits for flare gas utilisation, projects $2bn investments, 100,000 jobs
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued Permits to Access Flare Gas to 28 successful awardees under the Nigerian Gas Flare Commercialisation Programme (NGFCP), marking a pivotal shift from environmental liability to economic opportunity in Nigeria’s upstream petroleum sector.
The Commission Chief Executive (CCE), Engr. Gbenga Komolafe, said the issuance of the Permit to Access Flare Gas (PAFG) under the 2022 NGFCP signifies the transition from legacy challenges to market-driven solutions that unlock economic opportunities, strengthen energy security, reduce emissions and improve operational efficiency across the industry.
On the benefits of the award, Engr. Komolafe said the programme is expected to reduce carbon dioxide by six million tonnes yearly, attract US$2 billion in investments, and create over 100,000 jobs.
The NUPRC boss stated: “A total of 49 flare sites have been auctioned. Forty-two (42) bidders have been awarded the sites. Between 250 and 300 mmscfd of currently flared gas will be captured and commercialised, eliminating approximately six (6) million tonnes of carbon dioxide (CO₂) annually.”
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Before and after photos of a school in Obagi oil producing community in Rivers State.
The school is just one out of the 536 community projects being handled simultaneously through the Host Community Development Trust (HCDT).
The HCDT has risen to N373bn as of October 13, 2025, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said.
Section 235 of the Petroleum Industry Act of 2021, mandates settlors (oil companies) to incorporate Host Community Development Trust for the benefit of host communities where they operate.
The HCDT requires oil companies to deposit 3% of their operating expenditures of the preceding financial year into a trust fund which will be housed in a bank with BBB rating.
While the NUPRC does not have direct access to the funds, it monitors the fund through a dashboard known as HostComply. The Commission also monitors the implementation of the fund as mandated by the extant laws.
In line with the PIA, the NUPRC last month facilitated the delivery of over 10 life-changing projects and the flag-off of more than 10 others under the Obagi Host Community Development Trust (HCDT) in Rivers State, operated by TotalEnergies.
NUPRC greenlights TotalEnergies’ $510m deal with Shell, Agip
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signed off on a Sales Purchase Agreement (SPA) by TotalEnergies Exploration and Production Nigeria Limited to assign its entire 12.5% contractor interest in Oil Mining Lease (OML) 118 to Shell Nigeria Exploration and Production Company (SNEPco) and Nigerian AgipExploration Limited (NAE).
According to the details of the agreement, TotalEnergies will transfer 10% of its interest to SNEPco at a cost of $408, 000,000 while NAE will pay $102,000,000 for the remaining 2.5%.
The NUPRC said in a statement on Thursday, September 25, 2025 that pursuant to Section 95 of the Petroleum Industry Act 2021, the Commission carried out due diligence on SNEPco to ascertain their financial capacity and technical competence.
“SNEPco and NAE have demonstrated both technical and managerial competence to optimally contribute to the upstream operations (explore, develop and produce) in OML 118. They already maintain a participating interest in the asset.
“Based on the presentations and documents submitted, there is a clear evidence that they have access to funding to meet their financial obligations,” the Commission said.
The NUPRC further stated that TotalEnergies, a committed operator in Nigeria’s vibrant upstream sector, had also paid the statutory application fee for the deal.
The Commission noted that SNEPCO and NAE will bear the decommissioning and abandonment liabilities owed by TotalEnergies to the Federal Government of Nigeria with respect to the divested interest.
The upstream regulator explained that the divestment is subject to a ministerial consent in line Sections 95(1), (2), (7), (11) and 12 of the Petroleum Industry Act, 2021.
The Commission therefore expects SNEPco and NAE to pay 5% and 2% respectively of the transaction purse on the total value of $510,000,000 as premium on ministerial consent and processing fees.
The assignees are also to give an undertaking in favour of the Commission that they will bear all the decommissioning and abandonment liabilities and the host community liabilities owed by TotalEnergies
NUPRC clarifies TotalEnergies/Chappal deal
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued an official clarification on the status of the TotalEnergies and Chappal Energies deal which first received a ministerial consent on October 28, 2024.
The clarification has become imperative due to a series of media enquiries.
Recall that the NUPRC had on October 28, 2024 conveyed a grant of ministerial consent to the transfer of TotalEnergies’ entire 10% participating interest in the Nigerian National Petroleum Company Limited (NNPCL) and Shell Petroleum Development Company (SPDC) Joint Venture – excluding OMLs 23, 28 and 77 – to Telema Energies Nigeria Limited (owned by Chappal Energies).
Specifically, this divestment involved TotalEnergies’ 10% participating interest in Oil Mining Leases (OML) 20, 21, 22, 23, 25, 27, 28, 31, 32, 33, 35, 36, 43, 45, 46, 74, 77 and 79.
However, months after the approval, Chappal Energies failed to consummate the deal. This was despite extensions graciously granted by the Commission.
Based on this, the ministerial consent for the deal was withdrawn on May 29, 2025.
Also, the withdrawal of a ministerial consent does not in any way rule out the possibility of a future divestment by the interested parties provided such an asset sale is in line with extant laws.
The NUPRC affirms that in line with Section 6(h) of the Petroleum Industry Act, it remains committed to promoting an enabling environment for investments in upstream petroleum operations.
NUPRC Denies Report On N8.4trn Oil Theft, Says Crude Losses Dropped 90% In 4 Years
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has faulted a report titled, ‘N8.41tn oil theft drains economy, fuels investors’ doubts’ published on the front page of The PUNCH on Wednesday September 24, 2025.
The report in question was based on a misinterpretation of crude loss statistics between 2021 and July 2025 which had been released by the NUPRC in the spirit of transparency and in line with the Petroleum Industry Act, 2021.
Recall that the commission had revealed on September 11, 2025 that daily crude oil losses had dropped to 9,600 barrels per day, the lowest since 2009 which was reported widely and accurately.
The NUPRC was vindicated again when the latest figures released by the National Bureau of Statistics (NBS) showed that Nigeria’s economy grew by 4.23% largely on the back of an increased oil output and two other sectors an-acknowledgement of the steady progress made by the industry to combat the menace of crude oil theft.
Against the foregoing, the report by The PUNCH is not only specious but lacks proper context for the following reasons:
• Firstly, crude oil losses have been on the downward trend due to collaborative efforts between the NUPRC, the Office of the National Security Adviser, the military, Operators and other relevant stakeholders. This collaboration through both kinetic and non-kinetic means, dropped oil theft from a staggering 102,900 in 2021 – when the Commission was established – to the current 9,600bopd representing over 90% reduction in losses.
• Also, in the misleading report, an exchange rate of N1,500/$1 is used from 2021 to 2025 to increase the figures and sensationalize actual losses when in actual fact, Nigeria’s exchange rate was less than N430 on the official market and barely N600/$1 on average between 2021 (when most of the crude theft occurred) and in mid-2023. The N8.41 trillion is therefore inaccurate. Attempting to situate it within the current 2025 federal budget is flawed.
• Furthermore, the methodology adopted by the Newspaper is significantly flawed because it lacks in-depth understanding of operations, crude oil price trends and exchange rate mechanisms
• Nigeria has continued to meet its OPEC quota due to the Commission’s initiatives and working collaboratively with industry stakeholders to sustain and grow productions. Such initiatives include: the project 1 million barrels, implementation of the metering audit, restoration of shut-in strings and increased rig counts, facility uptime, creation of alternative crude evacuation mechanism etc.
• Furthermore, Nigeria now has the technical capacity to produce above two million barrels daily. The Commission is galvanizing Industry stakeholders – Operators, service providers (local and international), rig owners, off-takers, and financiers - in order to fully unlock the potential, riding on the improved operating environment and social inclusion in operating areas
• The story also fails the integrity test as no attempt was made by the reporter to get a clarification from the commission in the spirit of fairness and balanced reporting.
We urge the media to seek clarifications whenever the need arises. Inquiries could be sent to [email protected]
If you have been awarded an oil block and you refuse to develop it in accordance with the terms, it will be revoked.
“Every award has very clear terms about its tenure but the clear provisions of the PIA being the instrument that guides our regulatory activities is that unexplored acreages are expected to be relinquished apart from the clear terms of the award itself,” says NUPRC Chief Executive, Engineer Gbenga Komolafe.
Nigeria’s Gas Production Hits Daily Average of 7.59Billion SCF as NUPRC Releases July Production Stats
… Gas Production Rises 8.58% Year-On-Year
Gas Flare Reaches Three-Year Low Of 7.16%
Nigeria has achieved a rare energy milestone as gas flaring fell to 7.16% in July 2025, even as daily gas production rose to 7.59 billion standard cubic feet per day (BSCFD). The simultaneous growth in output and decline in flaring underscores the Commission’s drive to boost production while advancing its 2030 zero-flare commitment.
Nigeria’s gas industry has sustained steady growth over the past three years, with daily average production hitting 7.59 BSCFD in July 2025. This marks an 8.58% increase compared to the 6.99 BSCFD recorded in the full year of 2024.
The 7.59 BSCFD daily average also represents a 9.84% increase from the 6.91 BSCFD posted in the full year of 2023, which shows a sustained rise in gas production.
Despite an increase in production, the Commission also reported a continued reduction in gas flaring, which fell to 7.16% in July 2025, down from 7.55% in 2024 and 7.38% in the corresponding period of 2023.
The reduction in gas flare was recorded despite the steady increase in gas production which reflects the Commission’s commitment to end routine gas flaring by 2030.
The Commission has embarked on gas reduction programmeslike the Nigerian Gas Flare Commercialisation Programme(NGFCP).
Other initiatives include developing a Decarbonisation and Sustainability Blueprint, promoting Carbon Capture and Storage (CCS), and integrating sustainability into project planning through the Upstream Petroleum Decarbonisation Template (UPDT).
In terms of Domestic Gas Delivery Obligation (DGDO) performance, the sector delivered 72.5% in July 2025, up from 71.8% in June. Data from the Commission further shows that DGDO performance stood at 72.2% in January, rose to 73.5% in February, dipped slightly to 70.8% in March, before climbing again to 73.7% and 73.0% in April and May, respectively.
On gas production by contract type, 63% of output during the review period came from Marginal Sole Risk (formerly Marginal Fields), while Production Sharing Contracts (PSCs) accounted for 24%. Joint Venture (JV) contracts contributed 10%, and Sole Risk (SR) operators delivered the remaining 3%.
Gas utilisation data shows that, year-to-date as of July 2025, 35.88% of production was channelled to export sales, 27.82% was supplied to the domestic market, while 29.13% was utilisedfor field and plant operations (own use). Companies deployed gas mainly for in-house purposes such as fuel, gas lifting, and reinjection for pressure maintenance.
Gas-to-Power supply hit its strongest level in three months, with average daily deliveries rising by 3.48% month-on-month, from 833.86 million standard cubic feet per day (MMSCF/D) in June to 862.86 MMSCF/D in July 2025, the highest in three months.
Over the first seven months of the year, Gas-to-Power supply stood at 780.23 MMSCF/D in January, increased to 849.37 MMSCF/D in February, and rose further to 886.83 MMSCF/D and 886.7 MMSCF/D in March and April, respectively.
The daily averages for May, June, and July were 837.64 MMSCF/D, 833.86 MMSCF/D, and 862.86 MMSCF/D, respectively.
Even though Nigeria’s oil production has hit a six-month high with over 1.7 million barrels being produced daily, we at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are still exploring ways to expand the frontiers of energy production. We plan to achieve this by providing an enabling environment that will attract fresh investments and encourage existing investors to scale up. To this end, the Commission Chief Executive, NUPRC, Engineer Gbenga Komolafe; hosted the President, Exploration and Production of @TotalEnergies , Nicolas Terraz; and his team at the NUPRC’s corporate headquarters in Abuja. The message is clear: Nigeria is ready for business.
A meeting of Comrades
The Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engineer Gbenga Komolafe; and the President, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Festus Osifo; during the PENGASSAN Energy and Labour Summit on Thursday in Abuja