Oil Producers Support Plan To Boost Nigeria’s Daily Crude Output By 1 Million Barrels
The Independent Petroleum Producers Group (IPPG) has pledged its support for the "Project One Million Barrels Incremental" initiative launched by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to boost Nigeria’s daily crude oil production.
During a strategic visit to NUPRC’s Abuja headquarters, the IPPG delegation commended the Commission’s ongoing regulatory reforms and its role in facilitating recent asset divestments by international oil companies (IOCs). The visit also served to reinforce collaboration between the regulatory body and indigenous oil producers.
According to the NUPRC’s “Crude Oil and Condensate Production Report – May 2025”, Nigeria achieved 97% of its 1.5 million barrels per day (mbopd) OPEC production quota in May.
Crude oil output: 1.45 mbopd
Condensate output: 204,493 barrels per day (bopd)
Total daily output (crude + condensate): 1.81 mbopd
Daily average production: 1.65 mbopd
This marked an improvement over April’s 1.68 mbopd output, though slightly below the previous month’s 99% quota attainment.
Indigenous Operators Take the Lead
IPPG Chairman, Abdulrazaq Isa—also the Chairman of Waltersmith Group—noted that the supervised divestments by IOCs have enabled a significant transfer of upstream assets to indigenous operators. He described this transition as a "pivotal shift in Nigeria’s energy landscape", opening new opportunities for local companies to scale operations and deepen participation in both oil and gas development.
Reforms Driving Confidence and Growth
Receiving the delegation, NUPRC Chief Executive, Engr. Gbenga Komolafe, highlighted the Commission’s progress under the Petroleum Industry Act (PIA), including:
Automation of licensing and permit processes
Introduction of the “Drill or Drop” policy: operators must develop allocated assets or forfeit licenses
Increased rig activity—from 11 rigs before the PIA to 42 rigs currently, a strong signal of revived investor confidence
Komolafe stressed the Commission’s continued focus on transparency, accountability, and anti-corruption, calling for open dialogue and stakeholder feedback to ensure regulatory policies remain responsive to the sector’s evolving needs.
Upstream Outlook: Positive Momentum
The IPPG acknowledged the impact of recent reforms, noting increased local and international confidence in Nigeria’s upstream oil sector. As the country eyes an incremental production increase of 1 million barrels per day, the collaboration between regulators and local producers is expected to play a vital role in achieving this national target.