The Nigerian National Petroleum Company Limited (NNPC) says it saved $3.4 billion through contract restructuring and optimization between April 2025 and July 2026, while remitting N19.5 trillion to the Federation Account over the same period.
Group Chief Executive Officer, Bayo Ojulari, disclosed this at the 25th Nigeria Oil and Gas (NOG) Energy Week in Abuja, noting that ongoing reforms have improved efficiency, reduced costs, and strengthened partnerships across the company’s operations.
He added that NNPC maintained full compliance with its joint venture cash call obligations, even as many of its partners lagged behind. Of 27 partners, only six met their obligations fully, while others recorded partial or poor compliance.
The company also reported operational gains, including a six per cent rise in crude oil production and an 8.1 per cent increase in gas output. Current oil production stands at about 1.71 million barrels per day, the highest in five years, while gas production has reached 7.5 billion standard cubic feet per day.
Ojulari said improved infrastructure and partnerships helped achieve a 98 per cent recovery rate across key export terminals, up significantly from previous lows. He reiterated NNPC’s commitment to boosting production to two million barrels per day.
At the same event, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, announced that the federal government has engaged PricewaterhouseCoopers (PwC) to benchmark over 270 taxes, fees, and levies in the oil and gas sector against global standards.
The move aims to reduce regulatory bottlenecks and improve Nigeria’s competitiveness for investment. Lokpobiri acknowledged that the numerous charges, some as small as a few cents, create heavy administrative burdens for operators.
Industry stakeholders have long criticized the multiple levies, warning they threaten investment and project viability. The Independent Petroleum Producers Group (IPPG) called for harmonization of fees and a more investment-friendly regulatory framework.
Meanwhile, Renaissance Africa Energy Company announced a major hydrocarbon discovery at the JK-004 well in Oil Mining Lease 74. The company said the well encountered about 1,000 feet of hydrocarbon-bearing reserves across seven reservoirs, with strong indications of high-quality light oil.
Officials also highlighted renewed investment momentum in the sector, driven by reforms under the Petroleum Industry Act and recent government policies. Active oil rigs have increased significantly, signaling recovery from years of underinvestment.
Looking ahead, NNPC identified key projects expected to drive growth through 2027, including major gas pipelines, LNG developments, and deepwater oil fields.
The company said its reforms, alongside government policy changes, are expected to strengthen Nigeria’s energy security, increase revenue, and position the country as a more competitive player in the global energy market.
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