Despite volatile global oil market in 2024, no thanks to geopolitical tensions and other local challenges, Nigeria grew its crude oil production to 1.7 million barrels per day in November 2024 from 1.4mbpd in December 2023. The trend is expected to continue in 2025, with the government already projecting that determination in the N49.7 trillion 2025 budget.

Besides, year 2024 has been a year of significant importance to Nigeria as fresh investors are attracted to the energy sector through the oil bidding round.

Recently, 25 oil bidders emerged at the 2024 oil licensing bid round by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

It’s also on record that the Nigerian National Petroleum Company Limited, led by its Group Chief Executive Officer, Mele Kyari, embarked on the revival of the old Port Harcourt Refinery, after over three decades of dormancy.

Built in 1965, the old Port Harcourt refinery, is now back in operation, producing 1.4 million liters of PMS, 900,000 liters of kerosene, 1.5 million liters of diesel, and other critical products daily.

This revival follows the Federal Government’s $1.5 billion investment in 2021, which NNPCL effectively managed to deliver the long-overdue turnaround.

“The reopening of the 60,000-barrel-per-day-old refinery marks a pivotal moment in Nigeria’s journey toward energy self-sufficiency and showcases Kyari’s determination to reshape the country’s energy landscape,” an analyst has said.

Speaking with the Nigerian Tribune, an industry’s analyst, Wale Olumide, said: “Nigeria made a couple of improvement this year in terms of the result of some of the policies of government.”

According to him, the country made progress in the area of trying to grow oil production and attracting fresh investment, going by the success of the oil bid round.

“Unlike in the past that oil bid round would still be dragging; it would not have been concluded this year, but the success of last week’s oil bid round is commendable. It was completed at a good time.

“This will bring more revenue to the Federal Government to pursue some of the aspirations in 2025,” he said.

He explained that the success achieved in addressing oil theft and pipeline vandalisation is also impacting oil production positively.

“Government has been able to an extent address the issues of oil theft and pipeline vandalisation. If you look at it, the number of cases are coming down unlike what we recorded in the past,” he said.

He also said the country recorded a big milestone for the industry to secure the headquarters of the African Energy Bank in 2024.

When we look at the Africa Energy Bank, that is a big milestone that we recorded this year. We have been able to secure 50 percent of the funding for the take-off of that project.

“We were able to secure the headquarters. About 5 countries bided for it and it finally came to Nigeria. That is a big one for the country,” he said.

On local refining of petroleum products, he lauded the coming on board of the Dangote and Port Harcourt Refineries, saying the effort would reduce importation of products and pressure on forex

According to him, although the importation of refined products had been reduced, but not up to the quantity Nigerians wanted.

He said: “We have been able to peg importation of products down a little so that saving from forex can be channeled into another area.

“In terms of cost, we have not started seeing the effects at the pump. I think only last night Dangote reduced the price to N889 per litre for those that are making bulk purchase of about N10million above, so that by the time the marketers begin to pick up the product, it is expected that the price will reflect because if the price doesn’t reflect, all these things do not matter to Nigerians whether forex or no forex, that is not what Nigerians really want.

“If today they are buying at N800 per litre, we can say we are beginning to see the gain, but at the moment, we are still buying above N1000 per litre,” he said.

In the gas sector, Olumide said that a couple of deals were sealed in 2024, pointing out that the Brass Methanol Project was one of them.

“Only about two or three days ago, the custom, because of the implementation of Zero duty VAT for this year components CNG components, they have started the implementation, which will go a long way in crashing the cost of CNG.

“At the moment, we are talking about N1million. With the implementation of this, the cost will crash automatically. That will help the importation of CNG vehicles. It will help a lot of people to move into that range,” the energy sector analyst said.

He also mentioned that the government has signed an agreement with the DFI group to resuscitate the Aluminum Smelter Company of Nigeria in Akwa Ibom State.

“The agreement was signed this year with the DFI group and one other company for the resuscitating of the gas processing plant for that facility.

“So by the time it comes on stream, it’s going to help the aluminum sector a lot. A lot of products from that sector are being imported,” he said.

President, Nigerian Association of Petroleum Explorationlsts (NAPE), Johnbosco Uche, said that following the Petroleum Industry Act (PIA) and the Executive Order that was signed by the President, largely on deep water, there have been drive around divestment activities in Nigeria.

According to him, indigenous players have taken active roles in driving the energy industry in Nigeria.

He listed the conclusion of Seplat- ExxonMobil deal, Renaissance’s$1.3 billion Shell divestment deal, Sale Ministerial consent and Oando -Agip deal as some of the successful divestments.

“What you are going to see right now is that the indigenous players are going to take active role in terms of driving the energy industry in Nigeria.

“That is what we are seeing around the divestments. Look at the Seplat- ExxonMobil deal that was completed this year; look at the SPDC-Renaissance deal that was also recently achieved; Oando-Agip company in Nigeria concluded, and then there is also Japal.

“So if you look at all these activities, there are also few oil field licensing activities, Aradel also got some of the marginal fields. There has been a lot of movement getting the indigenous companies active. It is good thing, quite good for our local content capacity building, and hopefully, that will bring more investment in the coming year,” the NAPE President said.

He noted that the big players, the IOCs, have as well, begun to play more active roles, mentioning Shell $5bilion Bonga North field investment.

Speaking during the third anniversary of NUPRC, the Commission Chief Executive, Engr. Gbenga Komolafe, raised hope on increased oil production,

He said the commission has maintained a healthy reserve-to-production ratio which is key to ensuring the long-term sustainability of Nigeria’s energy resources, with due cognizance to global energy dynamics.

He said he was confident that the ongoing activities of Petroleum Prospecting License Awardees and the Licensing Rounds would further boost Nigeria’s position and unlock additional opportunities for resource valorisation.

NUPRC said that 25 oil bidders emerged at the 2024 oil licensing bid round.

Chief Executive of NUPRC, Mr. Gbenga Komolafe, announced the winners at the licensing round commercial bid conference held in Lagos on Wednesday, December 18, 2024.

The 25 winners that emerged after a competitive bidding are: Sifax and Royal Gate Consortium, and Oceangate Engineering Oil and Gas Ltd., both won the bids for PPL 300-DO and PPL 302- respectively, having emerged as the DO respectively, having emerged as the sole bidders in the categories.

For PPL 303-DO, two bidders, MRS Oil and Gas Company Ltd., and NNPC Exploration and Production Ltd., qualified and had a tie in the bidding, but MRS Oil and Gas emerged the winner.

In PPL 304-DO, Homeland Integrated Offshore Services Ltd. edged out Sifax and Royal Gate Consortium to emerge the winner. Hamilcar Oil and Gas Consortium won the bid for PPL 305-DO ahead of NNPC E&P.

BISWAL Oil and Gas Ltd. won in the PPL 306-DO bid, beating NNPC E&P Ltd.

Petroli Energy Marketing and Supply Ltd. won the PPL 269, Sahara Deepwater Resources Ltd. won PPL 270 while Sahara Deepwater also won the PPL 271 License.

TotalEnergies, with 126 points, emerged winner in the PPL 2000/2001, beating Star Deepwater Petroleum Ltd. that scored 125 points.

For PPLS 2002, 2003, 2004, 2005, and 2006, BISWAL Oil and Gas; First E & P Development Company; Dewayles International Ltd.; Applefield Oil and Gas Ltd and First E&P Development Company Ltd respectively won the licenses having being the sole bidders in their respective categories.

Similarly, PPLs 2007, 2008 and 3007 went to R28 Holdings Ltd., Tulcan Energy E & P Company Ltd. and Oceangate Engineering Oil and Gas Ltd.

Boron Energy Ltd. won PPL 2009, while PPLS 3011, 3012, 3015, 3016 and 3017, were all won by sole bidders including: R28 Holdings, Tulcan Energy E &P Company Ltd., Panout Oil and Gas, Hakilat Oil and Gas Consortium Ltd., Applefield Oil and Gas respectively and Applefield Oil and Gas respectively.

Komolafe also announced that there would be another oil licensing bid round in 2025.

According to him, the commission decided to make licensing rounds an annual exercise to boost oil production.

“While we are proud of our recent achievements as industry stakeholders, we must remain mindful of the challenges ahead.

“Declined production levels and failed global competition demand strategic action. Interestingly, the Petroleum Industry Act has given us a unique opportunity to transform the industry, attract investments and position Nigeria as a forefronter.

“To this end, I am pleased to announce that the NUPRC will launch another licensing round in the year 2025.

“Building on the lessons learned from this year’s round, the 2025 exercise will focus on discovered and undeveloped fields, fallow assets and prioritise natural gas development to support Nigeria’s commitment to UN Sustainable Development Goals,” he added.

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