Your Excellencies, Captains of Industry, Other Industry Stakeholders, Gentlemen of the Press, Ladies and Gentlemen, I am particularly pleased to present this opening address today, at the 2025 Nigeria International Energy Summit (NIES). As we are all aware, the theme of this session is: “Transformative Deals and Nigeria’s Upstream Future”. While commending the organisers of the Summit for sustaining the laudable ideal that NIES represents, it is appropriate to start the session with an address titled:”Imperative of Regulatory Efficacy in Optimisation of Upstream Activities”. This topic will provide the foundation for our esteemed panellists to delve into the critical conversations shaping the future of Nigeria’s upstream oil and gas sector.

2. There is no doubt that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) stands as a powerful catalyst for the growth, sustainability, and global competitiveness of our sector. The Nigerian oil and gas industry is the heartbeat of our economycontributing 95% of foreign exchange earnings and 70% to government revenue, unlocking employment opportunities, and positioning Nigeria as a formidable leader in the global energy arena. Yet, sustaining and accelerating this momentum demands a regulator that is visionary, predictable, firm, transparent, innovative and business enabling. We are proud to remark that the NUPRC today strives to sustain all these attributes of a 21st century regulator. This address briefly outlines how NUPRC’s strategic regulatory interventions are attracting investment, driving production optimisation, enhancing local contentand technological innovation, promoting decarbonisation and social inclusivity, thereby securing a future of resilience and prosperity for Nigeria’s oil and gas sector.

Harnessing Nigeria’s Energy Potential 

3. Ladies and Gentlemen, at the heart of NUPRC’s efforts is the growth of Nigeria’s hydrocarbon reserves and production in a cleaner manner for enhanced revenue generation. In the short-term, we have set new benchmarks for oil and gas production and significantly strengthening the nation’s energy security. Our achievements speak for themselves: between 2023 and 2024, oil reserves increased by 1.43%, reaching 37.5 billion barrels, while gas reserves grew by 0.21%, reaching 209.26 trillion cubic feet. Rig count increased from 8 in 2021 to 40 in 2025 and is projected to reach 50 before year end while production increased by 70% from 1 million bopd in 2021 to the current production of circa 1.75 million bopd. These accomplishments are not just numbersbut are parameters for measuring vibrancy in the industry driven by effective regulatory policies.
4. In pursuit of our goal to reach 40 billion barrels of oil and 220 trillion cubic feet of gas, we have vigorously pursued strategies to stimulate explorationactivities and accelerate development. As part of these efforts, the Commission successfully completed the 2022/2024 bid licensing round, and awardedtwenty-seven (27) Petroleum Prospecting Licenses (PPLs) across various terrains. Efforts are also on for the 2025 bid round, embracing a new paradigm ofannual licensing rounds. At this point, it is worth highlighting that the Commission has deliberatelybeen acquiring high-quality geological and geophysical data through multiclient service arrangements. The Commission also ensures access to the data for enhanced value especially during licensing rounds and other transformative deals. This proactive approach empowers informed decision-making and fuels strategic investments that will shape the future of Nigeria’s oil and gas sector for shared prosperity.

Optimizing Production and Bridging the Gap

5. Nigeria’s vast oil reserves present a remarkable opportunity for growth and economic transformation. While our current production averages circa 1.75 million barrels per day, our technical potential is 2.24 million barrels per day. The Commission is working assiduously to bridge the gap between the actual production and the potential through actions aimed at improving transparency, driving collaboration with E&P companies, ensuringfinancial viability, fast-tracking field developments, adopting cutting-edge improved oil recoverytechnologies, reducing costs, eliminating entry barriersand optimizing production. The potential for increased production is immense, and NUPRC is committed to unlocking every opportunity. Our efforts to reactivate shut-in wells and leverage low hanging fruits opportunities will bring us closer to actualisation of the Project 1MMbopd additional production target recently launched by the Commission. We are steadily progressing actions on Advanced Cargo Declaration Solution and Engineering Audit of Upstream Measurement Equipment and Facilities as part of our non-kinetic approach to combat crude theft, eliminate revenue leakage and maximize value.

Regulations and Policy Frameworks: Championing Transparency and Building Trust

6. At NUPRC, transparency is the cornerstone of our regulatory approach. We have introduced innovative regulations to improve hydrocarbon measurement, combat crude oil theft, and enhance hydrocarbon accounting. Through our Upstream Divestment and Exit Guidance Framework, we have ensured smooth asset transitions, attracting new capital and expertise. In collaboration with industry stakeholders, we have developed 24 forward-thinking regulations to bolster energy security, address transition risks, and foster a resilient, competitive upstream sector. In 2024, we rolled out a Regulatory Action Plan (RAP) 2024-2026, comprising 24 cardinal pillars designed to boost operational efficiency, enhance transparency, and position Nigeria’s upstream sector for global competitiveness and sustainable growth.

Driving Energy Transition and Sustainability

7. Sustainability is not just a choice; it is an imperative. As the global focus shifts toward a low-carbon future, NUPRC is embedding sustainability into upstream operations, mitigating environmental risks, and protecting communities. Key actions include:

Managing methane and GHG emissions, fostering energy efficiency and carbon credits.

Promoting investments in Carbon Capture, Utilization, and Storage (CCUS).

Enforcing ESG goals in FDPs

Through the Nigeria Gas Flare Commercialization Programme (NGFCP), approximately $2.5 billion in investment will potentially be unlocked, generating huge revenue, and creating significant number of jobs.

Social Inclusiveness: Enhancing Host Community Development

8. NUPRC’s commitment to shared prosperity is demonstrated in its effective implementation of the Host Community Development Trusts (HCDTs) provisions of the PIA 2021. With 154 HCDTs registered and over N78.8 billion and $122 million contributed to the fund, we are steering tangible change, resulting in 198 ongoing projects in host communities and enhanced peace and economic growth in resource-rich regions.

Enabling Transformative Deals in Nigeria’s Upstream Sector.

9. Through strategic policy interventions, we have fostered an environment that enables transformative deals, unlocking value for both investors and the nation. One of our key achievements has been the establishment of a clear and robust divestment framework. This framework has provided a structured pathway for asset transitions, ensuring regulatory certainty, protecting industry interests, and sustaining production. The framework was critical in facilitating high-profile transactions, such as the divestment of NAOC’s onshore and shallow water assets to Oando, Equinor’s exit through

Project Odinmim, as well as the Shell Petroleum Development Company (SPDC) divestment to Renaissance and ExxonMobil’s (MPN) asset transfer to Seplat Energy, ensuring a seamless transition while maintaining production stability, and allowing new players to bring fresh capital and expertise into the industry. As we continue this transformative journey, NUPRC remains committed to fostering a resilient, competitive, and investment-driven upstream sector. The success of these deals is a testament to our dedication to regulatory excellence, and we look forward to enabling even greater milestones in the future.

10. Indeed, NUPRC has provided, and will continue to provide regulatory support in advancing Nigeria’s upstream oil and gas success. NUPRC’s relentless efforts to eliminate investment barriers, streamline regulatory processes, and foster transparency, alongside strategic investment roadshows, have strengthened investor confidence and firmly re-established Nigeria as a dominant force in the global energy market. Through clear policies and competitive frameworks, we are attracting both local and international investments. We are also fosterisng innovation, advancing automation, digital oilfields, and Enhanced Oil Recovery (EOR) to drive sustainability as well as supporting local content and technology localization.
11. NUPRC’s commitment to transparency, accountability, and global safety standards providesa level playing field and securing a resilient, thriving future for Nigeria’s oil and gas sector. We are also adopting innovative approaches to enhance industry stability. An example of such approaches is the NUPRC’s Alternative Dispute Resolution Centre (ADRC) which plays a crucial role in fostering efficient, fair, and timely resolution of conflicts within Nigeria’s oil and gas sector. Through the recent inauguration of the Body of Neutrals, the Commission has established a trusted panel of experts to mediate disputes, ensuring impartiality and minimizing legal delays.

More on Forward-looking Plan

12. At NUPRC, we are also committed to enriching domestic gas utilization and expanding gas infrastructure to meet Nigeria’s growing energydemands. In this regard, we will ensure that every Field Development Plan (FDP) includes a firm commitment to fulfilling gas delivery obligations and increasing gas supply to the domestic market to meet rising local demand. As part of our forward-looking plan to advance deepwater development, we will promote the creation of deepwater clusters, fostering synergies in facility use to unlock the vast potential of Nigeria’s deepwater resources while reducing costs and leveraging economies of scale. Furthermore, we are aligning our upstream operations with global decarbonization goals. In this regard, the Commission is organizing the first Nigeria Upstream Oil and Gas Decarbonization Forum next month, where we will present our governance and regulatory framework for decarbonization in the Nigerian upstream sector. This

forum will provide a platform for key stakeholders to engage in meaningful discussions on decarbonization and carbon monetization, while allowing regulators, agencies, and companies across the globe to share their valuable insights and experiences.

Conclusion

Ladies and gentlemen, Nigeria’s success in the upstream oil and gas sector is anchored on a predictable and enabling regulatory environment.

Through regulatory excellence, collaboration, and visionary planning, NUPRC is poised to guide Nigeria toward a future defined by energy security, economic growth, and environmental responsibility. The journey ahead is promising, and with the sustenance of the right regulatory direction as being steered by the NUPRC, Nigeria’s upstream sector will continue to be a beacon of success on the global stage. As Albert Einstein wisely said,  “In the middle of difficulty lies opportunity.” With every challenge comes an opportunity to build a brighter, more prosperous future.

• Engr. Gbenga Komolafe, Chief Executive (CCE)  of  the Nigerian Upstream Petroleum Regulatory Commission  (NUPRC), delivered this paper at the ongoing Nigeria International Energy Summit(   (NIES)