The Nigerian National Petroleum Company Limited (NNPCL), alongside International Oil Companies (IOCs) and local producers, has unveiled a strategic roadmap aimed at slashing oil production costs by $3 billion in the short term, with projections to hit $4.5 billion in savings by December 2025.
Speaking at the Nigerian Association of Petroleum Explorationists’ (NAPE) 50th anniversary, NNPCL Group CEO Bayo Ojulari emphasized that reducing Unit Operating Costs (UOCs) and Unit Technical Costs (UTCs) is key to industry sustainability.
Ojulari, represented by Executive Vice President (Upstream) Udobong Ntia, noted that lower production costs will benefit both operators and the national oil company, making Nigerian crude more competitive globally.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also announced plans to boost active rig counts from the current 43 to 50 rigs by the end of 2025, a significant rise from just 8 rigs in 2021.
Ojulari highlighted Nigeria’s recent production surge from 1.4 million barrels per day (bpd) in late 2024 to 1.8 million bpd in July 2025, attributing the gains to increased investments, including Shell’s $5 billion Bonga North project.
NUPRC Chief Gbenga Komolafe projected even greater output, targeting 3 million bpd of oil and 12 billion cubic feet of gas per day in the coming years, supported by Nigeria’s vast reserves of 37.28 billion barrels of oil and 210.54 trillion cubic feet of natural gas.
Industry leaders stressed that unlocking stranded oil discoveries, embracing digital technology, and fostering collaboration between government and operators will be vital to achieving Nigeria’s 2030 energy goals.
