… Highlights Reform Gains in One-Year Scorecard
ABUJA — Nigeria’s state-owned oil company, NNPC Limited, says crude oil production has climbed to its highest level in five years, as it outlined operational and structural gains in a one-year performance review spanning April 2025 to April 2026.
According to a summary released Tuesday via its official X account, the company reported crude output — including condensates — rising to 1.71 million barrels per day. The figures form part of its first full-year assessment under a renewed operational mandate.
NNPC said its upstream subsidiary, the NNPC Exploration and Production Limited (NEPL), recorded a peak production of 365,000 barrels per day in December 2025, underscoring what it described as improved field performance and asset optimization.
Beyond output, the company pointed to progress in upstream reforms, including the execution of a model Production Sharing Contract (PSC) covering oil mining leases PPL 2000 and 2001. The framework, it said, is expected to unlock fresh investment in deepwater, non-associated gas development.
The report also highlighted the resolution of the long-running dispute over Oil Prospecting Lease 245, clearing the path for its conversion into new PSCs tied to PMLs 102 and 103, as well as PPLs 2011 and 2012, under the Zabazaba/Etan project.
In the gas segment, NNPC cited a series of infrastructure milestones. These include the completion of the River Niger crossing on the Ajaokuta–Kaduna–Kano (AKK) pipeline and welding works along the corridor by July 2025. It also confirmed the commissioning of the Obiafu-Obrikom-Oben (OB3) pipeline connection linked to the Assa North-Ohaji South (ANOH) gas processing project.
Gas supply volumes also expanded, with the company reporting deliveries of 7.5 billion standard cubic feet per day in 2025. NNPC said it executed key commercial agreements, including a Network Exit Agreement involving NGIC and Dangote Fertilizer Limited, alongside a separate supply deal between NGML and Dangote Cement.
Additional developments included optimization work on the Sokoto pipeline to enhance output, the rollout of the NNPC Gas Master Plan in January 2026, and new supply agreements with CNG Ibese aimed at deepening domestic gas utilization.
On refining, the company said it has transitioned its refineries to an Incorporated Joint Venture model, a move designed to improve efficiency, attract investment, and position the assets for commercial competitiveness. It also confirmed consolidating a 7.25 percent equity stake in the Dangote Refinery, describing the investment as strategic to national energy security.
NEWSFOCUS Insight:
While the performance indicators suggest operational momentum, the absence of commentary on persistent risks — including crude theft, pipeline vandalism, and foreign exchange constraints — points to structural challenges that continue to shape Nigeria’s oil sector.
The one-year scorecard offers a snapshot of NNPC’s reform trajectory, but its durability will likely depend on sustained execution, improved security conditions, and broader market dynamics in the months ahead.
