Olufemi Adeyemi
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has identified more than 788,000 barrels per day (bpd) of shut-in oil production across 63 operators, intensifying efforts to recover idle output and strengthen Nigeria’s position in the global oil market.
The planned restoration forms part of the commission’s broader strategy to increase crude oil production, accelerate upstream investments and support the Federal Government’s ambition to raise national output to three million barrels per day by 2030.
The Commission Chief Executive, Oritsemeyiwa Eyesan, disclosed the development at the national conference of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos. She was represented at the event by Patricia Temisan-Olatunde, Assistant Director, Corporate Services and Administration, according to a statement shared by the commission on its official X account on Saturday.
Eyesan said the regulator was stepping up measures to unlock existing production capacity, including speeding up approval processes and advancing licensing activities to encourage investment and deliver additional volumes in the near term.
Shut-in production refers to oil wells that are temporarily not producing crude, although they retain the potential to do so. Such interruptions may arise from operational difficulties, technical failures, commercial considerations, infrastructure limitations or other constraints affecting production.
The volume identified by the NUPRC represents a significant opportunity to increase output by resolving production bottlenecks and bringing existing wells back online, potentially complementing the development of new oil and gas assets.
788,000bpd restoration tops NUPRC’s priorities
Outlining the commission’s immediate priorities, Eyesan said the regulator was focusing on recovering shut-in production, moving major offshore projects towards final investment decisions and ensuring that domestic gas supply obligations were fully met.
“Our key priority is simple: restoring the more than 788,000 barrels per day of shut-in production identified across 63 operators; taking offshore projects valued at an estimated $30 billion to $50 billion to final investment decision; and raising domestic gas delivery from about two-thirds of the domestic obligation to full delivery,” the commission stated.
The statement underscores the regulator’s intention to pursue production growth on several fronts, combining the recovery of existing oil output with the development of major offshore assets and improvements in the domestic gas supply chain.
Restoring the identified shut-in volumes could provide a substantial boost to Nigeria’s production capacity if operators are able to resolve the constraints preventing the wells from producing. However, the actual volume recovered will depend on the condition of the affected assets, the nature of the operational challenges and the time required to address them.
The commission also reported progress in drilling and well-re-entry activities between January and September 2026.
During the nine-month period, 77 wells were successfully re-entered, while 128 wells received approval for drilling. The activities form part of efforts to accelerate upstream development and shorten the time required for projects to contribute to national production.
Faster approvals are expected to help operators advance eligible projects, although regulatory authorisation alone does not guarantee that wells will be drilled, completed or brought into commercial production within a specific timeframe.
$50bn offshore investment pipeline in focus
Beyond recovering existing production, the NUPRC is seeking to advance offshore petroleum projects estimated to be worth between $30 billion and $50 billion to final investment decision (FID).
FID is a critical stage in project development at which investors formally commit capital to proceed with a project after evaluating its commercial viability, technical requirements and other key considerations.
Moving the projects to this stage could help unlock substantial investment in Nigeria’s offshore oil and gas industry, supporting field development, infrastructure expansion and future production capacity.
The proposed investment push also aligns with the Federal Government’s broader efforts to attract capital into deepwater petroleum projects through executive orders issued by President Bola Tinubu.
Nigeria’s ability to attract and retain investment in offshore developments remains important to its long-term production ambitions, particularly as major projects typically require significant upfront capital, extensive infrastructure and lengthy development periods.
The NUPRC’s approach therefore combines the potential for near-term gains from restoring shut-in production with longer-term growth expected from the development of new offshore assets.
Commission seeks full delivery of domestic gas obligations
Improving domestic gas supply is another central element of the commission’s strategy.
According to the NUPRC, domestic gas delivery currently stands at about two-thirds of the applicable domestic supply obligation, leaving a gap that the regulator intends to close.
The commission’s target is to raise delivery to the full domestic obligation, a move intended to strengthen the availability of natural gas for local consumption.
Reliable domestic gas supply is important to power generation, industrial activity and other sectors that depend on gas as a source of energy or industrial feedstock. Improving delivery could help reduce supply constraints and support broader economic activity, provided that production, processing, transportation and payment challenges are also addressed.
Achieving full compliance, however, will require sustained coordination among producers, gas suppliers, infrastructure operators and domestic buyers.
2026 licensing round offers 40 oil and gas blocks
The production recovery drive comes as the Federal Government expands opportunities for upstream investment through successive oil and gas licensing rounds.
The government opened the 2026 oil and gas licensing round on Wednesday, offering 40 blocks across onshore, shallow-water and deepwater terrains to local and international investors.
The exercise follows the 2025 licensing round, in which 31 companies emerged as winners of 37 oil and gas blocks after a competitive bidding process.
The licensing programme is intended to attract fresh investment, encourage exploration and development, and increase the number of assets capable of contributing to Nigeria’s future oil and gas production.
Earlier projections indicated that assets offered under the 2025 licensing round could add approximately 500 million barrels to the country’s crude oil reserves and contribute at least 300,000 barrels per day of crude oil and condensate production within five years, subject to successful development.
If realised, the projected contribution could support the country’s ambition to increase production to three million barrels per day by 2030.
However, the projected gains remain dependent on the successful development of the licensed assets, including the availability of financing, the completion of technical and commercial assessments, the construction of required infrastructure and the resolution of operational challenges.
Delivery will determine success of production strategy
Nigeria’s latest production drive reflects a two-pronged approach to increasing output: recovering volumes from existing wells that are currently not producing and creating opportunities for new investment through licensing and offshore project development.
The identification of more than 788,000 barrels per day of shut-in production provides the regulator with a significant pool of potential output to pursue. Yet the figure represents production targeted for restoration, not barrels already recovered or guaranteed to return to the market.
The pace of recovery will depend on how quickly operators can identify and resolve the constraints affecting individual wells, secure the necessary funding and infrastructure, and resume production safely and commercially.
Similarly, the expected contribution from newly licensed assets and major offshore projects will depend on how efficiently companies progress from regulatory approvals to actual field development and production.
As Nigeria pursues its 2030 oil and gas ambitions, the central challenge will be translating licensing awards, approved drilling programmes and identified production opportunities into sustained output growth.
For the NUPRC, success will ultimately be measured not only by the volume of idle production identified or the number of wells approved, but by the quantity of additional oil and gas that operators can successfully bring to market.
