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FG Expands Crude Evacuation Network, Oil Rigs Now 44

byChibuzor Isichei
July 3, 2025
in Business
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The Federal Government has approved 37 new crude oil evacuation routes across the
country as part of ongoing reforms aimed at boosting production and reducing oil theft.

This was announced by the Chief Executive of the Nigerian Upstream Petroleum Regulatory
Commission (NUPRC), Gbenga Komolafe, during his keynote address at the 24th edition of
the NOG Energy Week 2025, held Wednesday in Abuja.

Komolafe revealed that Nigeria’s active crude oil rigs have risen significantly from just eight
in 2020 to 44 in 2025 highlighting improved industry activity.

His address, titled “Positioning Nigeria’s Upstream Oil & Gas for Energy Security,
Sustainability, and Economic Resilience,” emphasized that the new evacuation routes are
key to restoring asset integrity, securing crude transportation, and supporting the
government’s Project One Million Barrels initiative aimed at ramping up daily production.

“With the approval and implementation of 37 new crude evacuation routes in partnership
with security agencies, we’re effectively tackling oil theft and enhancing transparency,” said Komolafe.

He noted that the results are already showing, with Nigeria’s oil production rising from 1.46
million barrels per day to 1.7 million bpd. “Our goal is to hit 2.5 million bpd by 2026, and
we’re clearly on track,” he added, pointing to steady progress in rig activity.
“Post-COVID, our rig count dropped to just eight in the upstream sector.

Today, that number has climbed to 44, which is a significant milestone for the country,” Komolafe stated. Komolafe stated that Nigeria’s oil and gas sector is undergoing a significant transformation under President Bola Tinubu’s administration, driven by the implementation of the Petroleum Industry Act and a series of new executive orders introduced in 2024.

“Let me be clear: under the bold and decisive leadership of President Bola Ahmed Tinubu,
we’ve witnessed a major shift in policy direction,” he said. “Executive Orders #40 on fiscal
incentives, #41 on local content, and #42 on cost efficiency and streamlined contracting
have collectively spurred over $16 billion in new investments within just two years,” the
NUPRC chief added.

Komolafe emphasized that protecting crude oil infrastructure and building domestic energy
resilience are central to the ongoing sector reforms.

He explained that the Nigerian Upstream Petroleum Regulatory Commission’s Domestic
Crude Supply Obligation (DCSO) initiative is now ensuring a consistent supply of crude oil to local refineries. This, he said, is aimed at reducing reliance on imports and strengthening
Nigeria’s downstream value chain.

“Our priority isn’t just exports. We are focused on reinforcing domestic supply chains and
boosting economic resilience by making sure our refineries have the crude they require,”
Komolafe stated.

He also pointed to the Commission’s ongoing digital transformation drive, which is designed
to streamline regulatory processes and enhance investor confidence in the Nigerian oil and
gas sector

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Chibuzor Isichei

Chibuzor Isichei

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