LAGOS, Mar 25 – Nigeria has significantly reduced the time required to approve applications for reviving idle oil wells, cutting the process from weeks to just hours as it seeks to boost crude production.
The move, led by the Nigerian Upstream Petroleum Regulatory Commission, is part of a broader push to capitalize on elevated global oil prices, with crude trading near $100 per barrel.
Regulators are also fast-tracking approvals for evacuations and barges at production facilities and export terminals, aiming to accelerate output across the sector. Officials say “speedy approvals” are being granted for all activities capable of increasing production.
The surge in applications has been driven largely by local oil companies seeking to reopen previously inactive wells. The streamlined process replaces an earlier system that typically took between two and six weeks.
Reviving existing wells offers a faster and more cost-effective route to production compared to drilling new ones, which can take years to develop. In contrast, restored wells can begin producing within weeks.
Nigeria’s oil output fell to 1.31 million barrels per day in February, the lowest level in 17 months, partly due to maintenance at a major facility operated by Shell Plc.
Production remains below previous peaks of over 2 million barrels per day, limiting the country’s ability to fully benefit from high oil prices. Nigeria averaged 1.34 million barrels per day in 2022, when global crude prices surged following geopolitical disruptions.
The regulator approved about 500 permits to reopen idle wells in 2024, including projects involving Heirs Energy and Seplat Energy Plc.
The government has set a production target of 1.84 million barrels per day for the year, a level it continues to pursue through operational reforms and increased private sector participation.
