The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has scheduled a new licensing round for 2026 as part of an aggressive strategy to expand the country’s oil production capacity.
The regulator also unveiled plans to restore more than 788,000 barrels per day (bpd) of shut-in production. Additionally, the commission aims to move offshore projects with an estimated value of $30 billion to $50 billion to the final investment decision (FID) stage.
These measures are designed to address the production gaps that have hindered Nigeria’s ability to meet national oil output targets. The commission outlined these production-boosting objectives to attract new capital and stabilise the energy sector.
Strategies for production recovery
The NUPRC’s plan to recover 788,000 bpd of shut-in production focuses on addressing technical and operational bottlenecks that have left significant volumes of crude oil stranded. Shut-in production occurs when wells are temporarily closed due to maintenance requirements, pipeline outages, or security challenges in the Niger Delta.
By focusing on these existing assets, the commission intends to provide a faster route to increasing the volume of crude available for export without relying solely on the lengthy timeline required for new discoveries. This approach aims to provide immediate relief to the national output levels.
Simultaneously, the commission is prioritising deepwater and offshore developments. The push to advance projects worth up to $50 billion to the FID stage is a move to secure large-scale capital from both international oil companies (IOCs) and independent producers. Offshore assets are increasingly viewed as more secure alternatives to onshore operations, which have frequently been affected by oil theft and infrastructure vandalism.
The 2026 licensing round will provide a structured framework for companies to bid for new oil and gas blocks, ensuring that the next cycle of exploration is supported by the regulatory clarity provided under the Petroleum Industry Act (PIA). The PIA was designed to create a more transparent and stable environment for investors, and the upcoming licensing round serves as a primary application of this regulatory framework.
Industry experts note that the success of these plans will depend on the ability of the government to maintain security in production areas and provide the necessary infrastructure to transport recovered oil. While the 2026 round offers long-term growth potential, the immediate priority remains the $30 billion to $50 billion offshore pipeline of projects currently awaiting investment decisions.
The NUPRC is expected to release further technical details regarding the specific blocks and terms of the 2026 licensing round in the coming months.
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