The Federal Government is moving to boost crude oil production by an additional 810,000 barrels per day through a renewed push into Nigeria’s underperforming deepwater oil fields.
Spearheaded by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the plan is designed to reignite offshore output using a cluster and nodal development strategy—an approach that allows operators to share infrastructure and cut project costs.
At a stakeholders’ workshop in Abuja, NUPRC Chief Executive Gbenga Komolafe, represented by Executive Commissioner Babajide Fashina, noted that Nigeria’s offshore production has dropped significantly, from 800,000 barrels per day in 2016 to less than 500,000 currently. He revealed that more than 5 billion barrels of oil and over 13 trillion cubic feet of gas remain untapped in deepwater reserves.
The NUPRC believes implementing already-approved field development plans could unlock 1.55 billion barrels of oil and nearly 1.5 trillion cubic feet of gas, pushing peak production by as much as 810,000 bpd.
Despite multiple discoveries and licensing rounds in recent years—including 31 deepwater blocks offered between 2022 and 2024—actual production has lagged. Factors such as delayed investment decisions, high technology costs, and fragmented development efforts have been major obstacles.
To tackle this, the Commission has set up a Deepwater Cluster Development Committee, with plans to involve more stakeholders in subcommittees focused on infrastructure, economics, and policy alignment. Projects like Bonga North have already received final investment approvals, while others like Owowo, Zaba Zaba, and Akpo West are being evaluated.
Executive Commissioner for Development and Production, Enorense Amadasu, emphasized the need for collaboration among operators to make projects more economically viable. He said many smaller assets can become productive when developed together, rather than in isolation.
The government is also leaning on fiscal incentives, including zero hydrocarbon tax for deepwater fields and reduced tax rates for other lease types under the Petroleum Industry Act, to attract more investment.
Currently, deepwater reserves make up about 18% of Nigeria’s total crude and condensate reserves. While Nigeria has produced over 4.4 billion barrels from deepwater fields to date, NUPRC officials stressed that further growth hinges on urgent action.
“If we don’t develop these fields now, we’ll be in trouble in five years,” Amadasu warned. “We have the reserves, the approvals, and the incentives—what we need now is execution.”
