Nigeria is preparing to open bids for 31 onshore and offshore oil and gas blocs in a race to increase oil output and attract new investment, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

?These 31 oil and gas blocs have been carefully selected for their potential to boost our reserves and stimulate economic activities,? Enorense Amadasu, executive commissioner, of development and production at the Nigerian Upstream Regulatory Commission (NUPRC) said at an event in Nigeria?s commercial capital.

Amadasu noted that further details on the bidding timeline would be released soon.

According to NUPRC, Nigeria?s current production rate, including crude oil and condensates, has reached 1.8 million barrels per day (bpd), up from 1.54 million bpd in September, with plans to push this figure to 2 million bpd by year-end.

Amadasu confirmed the anticipated growth, attributing it to enhanced security around oil infrastructure and new incentives designed to draw investors.

Nigeria?s increased production trajectory, however, could challenge its OPEC+ production cap of 1.5 million bpd of crude.

While the 23-nation OPEC+ group aims to limit supply to stabilize global oil prices, Nigeria?s target output of 2 million bpd, which includes condensates, could exceed its cap.

Nigeria?s government is focused on revitalising its energy sector after years of underinvestment, theft, and vandalism, particularly in the Niger Delta region, which has hindered the country?s ability to meet its production targets.

As Africa?s largest oil producer, Nigeria has struggled in recent years to stay within its OPEC+ quota, largely due to production disruptions.

To address these issues, President Bola Tinubu?s administration has implemented new incentives, including tax breaks for producers and expedited asset sales, to increase both domestic and foreign investment.

The renewed focus on drawing investment comes as part of broader economic reforms aimed at boosting local production capacity and creating jobs in the energy sector.

The auctioning of the 31 oil blocks is one of several steps Nigeria is taking to encourage exploration and secure sustainable production growth.

Industry experts believe that these efforts, combined with ongoing security improvements, could position Nigeria to reclaim its status as a leading oil producer within OPEC+. The NUPRC has emphasized that while meeting OPEC+ guidelines is a priority, it is equally focused on maximising Nigeria?s energy potential to support long-term economic growth. (BusinessDay)

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