Nigerian National Petroleum Company Limited has announced a major increase in crude oil production to 1.71 million barrels per day (bpd), marking the highest output recorded in the past five years.
The milestone forms part of the company’s one-year performance report under its Group Chief Executive Officer, Bayo Ojulari, highlighting progress across upstream, gas, refining, and corporate operations.
Ojulari shared the update on Sunday, describing the report as a reflection of transparency, accountability, and measurable performance improvements within the national oil company.
Oil Production Records Strong Recovery
The report shows a steady recovery in Nigeria’s oil output after years of decline linked to crude theft, pipeline vandalism, and operational challenges.
NNPC said its upstream subsidiary, NNPC Exploration and Production Limited (NEPL), achieved a record milestone.
The unit reached an all-time peak production of 365,000 bpd in December 2025, signaling improved efficiency and stronger asset management.
Industry observers say the increase reflects ongoing reforms aimed at stabilising production and restoring investor confidence.
New Contracts to Unlock Deepwater Gas
The company also executed a new Production Sharing Contract (PSC) model for oil blocks PPL 2000 and 2001.
NNPC said the updated framework includes more flexible and comprehensive terms designed to attract investment.
The model specifically targets the development of deepwater non-associated gas resources, a largely untapped segment of Nigeria’s energy sector.
Analysts believe this could play a key role in diversifying the country’s energy mix and boosting long-term revenue.
Progress on Key Oil Assets
NNPC reported progress in resolving the long-running dispute surrounding the former OPL 245 (Zabazaba/Etan) oil block.
The asset has now been converted into new Production Sharing Contracts covering PMLS 102 and 103, as well as PPLs 2011 and 2012.
This development is expected to unlock new investment opportunities and accelerate production from previously stalled assets.
Gas Infrastructure Expansion Gains Momentum
In the gas sector, the company recorded major infrastructure milestones.
It completed the River Niger crossing of the Ajaokuta-Kaduna-Kano (AKK) pipeline in July 2025, a critical segment of the national gas network.
NNPC also confirmed the full welding of the pipeline, bringing the project closer to full operational status.
Additionally, the Assa North-Ohaji South gas processing plant was commissioned and linked to the Obiafu-Obrikom-Oben (OB3) pipeline.
This connection strengthens domestic gas supply and supports industrial growth.
Gas Supply Rises to 7.5 Billion scf/d
The company said gas supply rose significantly to 7.5 billion standard cubic feet per day in 2025.
This growth was supported by several commercial agreements across the energy value chain.
Key deals include partnerships with Dangote Fertiliser, Dangote Cement, and the Dangote Refinery.
NNPC also launched a Gas Master Plan in January 2026 to guide long-term sector development and improve supply reliability.
Refinery Reforms and Dangote Partnership
NNPC introduced an Incorporated Joint Venture (IJV) model aimed at transforming its refineries into commercially viable entities.
The company said the model would allow the facilities to operate independently and sustainably.
It also consolidated its 7.25 percent equity stake in the Dangote Refinery, describing the move as strategic for national energy security.
NNPC reiterated its continued crude oil supply to the refinery under the “crude-for-naira” policy.
Officials say the initiative helps reduce foreign exchange pressure and stabilise fuel supply in the domestic market.
Global Expansion and Strategic Partnerships
The company strengthened its international operations through shipping partnerships with firms such as Stena Bulk and Sonangol.
NNPC also launched a new crude grade, Cawthorne, as part of efforts to expand its export portfolio.
In addition, its Oleum lubricant brand has been extended into the West African market, supporting regional growth.
Investment Push and Gas Commercialisation
NNPC secured presidential approval for incentives to unlock the Final Investment Decision (FID) on the Bonga South West Aparo project.
The project, located under the OML 118 Production Sharing Contract, is considered a major offshore development.
The company also signed a tripartite agreement with China Gas Holding Limited and Peiyang Chemical Singapore to accelerate gas commercialisation.
Transparency and Revenue Contributions Improve
A key highlight of the report is the resumption of full monthly remittances to the Federation Account Allocation Committee (FAAC) since July 2025.
NNPC also reinstated monthly performance reporting and held its first-ever earnings call in November 2025.
These steps are seen as part of broader efforts to improve transparency, governance, and investor confidence.
Workforce Development and Internal Reforms
On human capital development, the company onboarded 1,000 new employees, known as “The Tigers.”
It also introduced a new performance management system to enhance efficiency and accountability.
NNPC launched the Women in NNPC programme to promote gender inclusion and leadership development.
The company said these initiatives form part of its “Fit4Future” strategy to build a globally competitive workforce.
Leadership Vision and Industry Outlook
Commenting on the report, Ojulari said the achievements reflect deliberate reforms across the organisation.
He noted that the company is focused on delivering results that benefit both the economy and the Nigerian people.
According to him, the report goes beyond performance metrics and represents a commitment to accountability and national development.
NNPC transitioned into a fully commercial entity under the Petroleum Industry Act, with a mandate to operate profitably.
The company has faced criticism in recent years over oil theft, declining output, and delayed remittances.
However, the latest performance figures suggest a shift in strategy.
The rebound in production, expansion of gas infrastructure, and stronger partnerships indicate renewed momentum in Nigeria’s oil and gas sector.
Analysts say sustained reforms, improved security, and private sector collaboration will be key to maintaining this progress.
The continued implementation of the crude-for-naira policy and deeper engagement with players like the Dangote Group are expected to support long-term stability.
Ojulari, who assumed office on April 2, 2025, following a leadership overhaul that saw the exit of former GCEO Mele Kyari, is seen as central to this transformation.
His leadership is focused on repositioning NNPC as a transparent, efficient, and globally competitive energy company.
