Nigeria Needs More Than Oil Block Awards to Boost Output

The Society of Petroleum Engineers, Nigeria Council, has warned that awarding new oil blocks alone will not enable Nigeria to achieve its target of producing three million barrels of crude oil per day by 2030. Chairman Francis Nwaochei emphasized that the country must support exploration licenses with technology deployment, infrastructure development, operational efficiency, and access to capital.

He made these remarks during a pre-event press conference in Lagos ahead of the 49th Nigeria Annual International Conference and Exhibition scheduled for August 3 to 5 at the Eko Hotel & Suites. Nwaochei noted that while the conclusion of the 2025 oil licensing round by the Nigerian Upstream Petroleum Regulatory Commission, which awarded 37 oil and gas blocks to 31 preferred bidders, was positive, the challenge lies in converting these licenses into production.

He stressed the need for collaboration among various stakeholders and highlighted that indigenous companies now account for about 60% of Nigeria’s oil production, increasing their responsibility in demonstrating technical competence and financial capacity.