NNPC, NUPRC Hailed Over $20 Billion Gas Deals, Rising Oil Production

The leadership of the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have been commended for “remarkable progress” in restoring confidence, increasing production and attracting fresh investment into Nigeria’s oil and gas sector.

The Citizens Forum for Energy Accountability and Development (CFEAD) said the recent achievements announced by NNPC Group Chief Executive Officer, Bayo Ojulari, and NUPRC Commission Chief Executive, Oritsemeyiwa Eyesan, demonstrated that sustained institutional reforms and stronger operational discipline could reposition the petroleum industry as a major driver of economic growth.

In a statement issued on Thursday and signed by its Executive Director, Patriot Unazi Gideon, CFEAD said the reported $20 billion worth of gas sale and purchase agreements secured by NNPC in the past year represented a significant vote of confidence in Nigeria’s energy market.

Gideon said: “The signing of gas sale and purchase agreements worth more than $20 billion is not simply a commercial achievement for NNPC. It is a strong signal to the international investment community that Nigeria remains open for business and is capable of providing the policy direction, resources and commercial opportunities required for long-term energy investments.”

Ojulari had disclosed that the agreements covered 1.29 billion standard cubic feet per day of long-term LNG feed gas and 750 million standard cubic feet per day of domestic industrial gas supply to DFL FZE and Dangote Refinery, with seven additional commercial transactions in the pipeline.

The group also praised NNPC for reducing operating costs by $3.4 billion through contract restructuring and optimisation, while recording a six percent increase in crude oil production and an 8.1 percent increase in gas production.

CFEAD said the reported increase in crude production to about 1.71 million barrels per day, the highest level in five years, was particularly significant given the challenges that have historically constrained Nigeria’s petroleum output.

“The increase in crude production to about 1.71 million barrels per day should matter to every Nigerian because production is directly connected to national revenue and economic stability. When the industry produces more efficiently, the country has greater capacity to earn revenue, fund public services, support infrastructure and create opportunities for businesses and workers,” Gideon declared.

The group also highlighted the record production of 365,000 barrels per day by NNPC Exploration and Production Limited and the reported 98 percent average recovery across NNPC’s five crude oil export terminals between April 2025 and May 2026.

According to CFEAD, such improvements were evidence that operational efficiency could recover value previously lost through production disruptions, infrastructure challenges and inefficient processes.

It said the performance of the NUPRC was equally deserving of recognition, particularly its role in implementing policies designed to unlock investments in deep offshore oil and gas projects.

The group welcomed the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026, which the NUPRC said could unlock about $50 billion in investments and increase crude oil and condensate production by an additional one million barrels per day over the coming years.

“The deep offshore incentive is potentially transformative because it addresses one of the biggest problems facing the petroleum industry: the enormous capital requirement and long investment cycle associated with offshore developments. If properly implemented, the policy can unlock projects that have remained on the drawing board, attract billions of dollars in capital and create thousands of direct and indirect jobs,” the statement said.

It added: “The real test of every petroleum reform is not how impressive the figures look at a conference. The real test is whether the benefits eventually reach the ordinary Nigerian. More production should mean stronger government revenue, more jobs, greater energy security, increased industrial activity and a more stable economy. Nigerians must be able to feel the impact of these reforms beyond the oil industry.”

The group specifically identified the $10 billion Bonga South project, expected to commence production in 2027, as an example of the scale of investment that could emerge from a more predictable regulatory environment.

It said the wider benefits of deep offshore developments could extend beyond crude production to the marine economy, logistics, engineering, technology transfer and skills development.

“Projects such as Bonga South are important not only because of the barrels they will produce but because of the ecosystem they can create around them. Nigeria needs a petroleum industry that builds Nigerian expertise, strengthens local businesses, develops technology and creates sustainable employment rather than one that simply extracts crude and exports value,” Gideon said.

It also called on oil-producing communities, operators, investors, security agencies and other stakeholders to support efforts to increase production and attract investment.

The group said the achievements recorded by NNPC and NUPRC should encourage the Federal Government to deepen reforms across the petroleum value chain and maintain an investment-friendly environment.

It also urged the two institutions to communicate their achievements more effectively to citizens, arguing that public understanding and confidence were essential to sustaining support for the reforms.