Nigeria is intensifying efforts to revive oil production by pushing deeper into offshore exploration, as part of a broader strategy aimed at increasing crude output and attracting new investments into the sector.
The renewed focus comes as Africa’s largest oil producer continues to struggle to meet the production quota allocated by the Organization of the Petroleum Exporting Countries.
Authorities are now pursuing regulatory reforms, legal settlements and fresh licensing opportunities to stimulate upstream activity and lift output to about three million barrels per day.
One of the latest developments involves Italian energy giant Eni, which is preparing to expand its deepwater operations in Nigeria. The move follows discussions between President Bola Ahmed Tinubu and the company’s Chief Executive Officer, Claudio Descalzi, in Abuja on plans to strengthen offshore investment.
Central to the plan is the restructuring of Oil Prospecting Licence 245 (OPL 245). Under an agreement reached with the Federal Government, the block has been split into two Petroleum Mining Leases, PML 102 and PML 103, and two Petroleum Prospecting Leases, PPL 2011 and PPL 2012.
The arrangement was reached after both sides agreed to resolve longstanding disputes and discontinue arbitration proceedings at the International Centre for Settlement of Investment Disputes.
The licences will be operated by Nigerian Agip Exploration Limited in partnership with the Nigerian National Petroleum Company Limited and Shell Nigeria Exploration and Production Company Limited.
The development clears the way for the Etan and Zabazaba deepwater fields to move toward production. The combined project is believed to hold about 500 million barrels of oil reserves and is expected to rely on a floating production, storage and offloading facility capable of producing around 150,000 barrels per day. Gas production from the project, estimated to reach 200 million standard cubic feet per day at peak levels, is expected to be supplied to Nigeria LNG.
Eni, which has maintained operations in Nigeria for decades, also discussed its broader offshore assets in the country, including stakes in the Abo and Bonga fields as well as Nigeria LNG.
The company recently raised its shareholding in Oil Mining Lease 118 to 15 per cent, strengthening its position in Nigeria’s deepwater oil sector where it currently produces roughly 55,000 barrels of oil equivalent per day.
Meanwhile, Nigeria’s 2026 licensing round has opened 50 oil and gas blocks to investors. The exercise places strong emphasis on deepwater and frontier basins in an effort to unlock new reserves.
Exploration activity is also expected to expand through a new 3D seismic survey covering about 11,700 square kilometres in the eastern Niger Delta’s outer toe thrust deepwater region. The survey, conducted by TGS in collaboration with the Nigerian Upstream Petroleum Regulatory Commission, aims to identify fresh drilling prospects.
Other international oil companies are also stepping up plans in the country. Chevron has indicated it will deploy a new drilling rig in late 2026 to explore areas near the Agbami field as part of efforts to expand its operations.
Reforms introduced under the Petroleum Industry Act and additional fiscal incentives implemented between 2024 and 2025 have already attracted more than eight billion dollars in foreign direct investment into Nigeria’s oil and gas sector.
TotalEnergies is also assessing a potential 150-million-barrel prospect expected to be drilled in 2026, with plans to link any discoveries to existing offshore production facilities.
Industry projections suggest that exploration and production spending across Africa could reach about 41 billion dollars by 2026, with Nigeria expected to account for the largest share as deepwater development accelerates.
