Nigeria to Auction 31 Oil and Gas Blocks to Boost Production
Nigeria Targets 2mbbl/d Oil Output with 31 Block Auction
Nigeria Increases Oil Production, Plans Auction of 31 New Blocks
BY SHEKWOPEYELO
Nigeria will auction 31 onshore and offshore oil and gas blocks to increase its oil production and attract investment. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced this during an event in Lagos. The selected blocks are expected to boost the nation’s reserves and stimulate economic growth.
Currently, Nigeria produces 1.8 million barrels per day (mbbl/d) of oil, including crude and condensates, up from 1.54 mbbl/d in September. NUPRC plans to raise this figure to 2mbbl/d by the end of 2024. The increase in production comes from improved security around oil infrastructure and new investment incentives.
However, Nigeria’s rising production may challenge its OPEC+ production cap of 1.5 mbbl/d for crude oil. Nigeria plans to count condensates in its output, which could push its production beyond the OPEC+ cap.
The country has faced production disruptions due to underinvestment, theft, and vandalism, especially in the Niger Delta region. In response, President Bola Tinubu’s administration has introduced tax breaks and accelerated asset sales to attract both domestic and foreign investment. These measures aim to improve production capacity, create jobs, and drive long-term economic growth.
The auction of 31 oil blocks represents a strategic effort by NUPRC to foster exploration and ensure sustainable production growth while staying within OPEC+ guidelines.
