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Nigeria Unveils 37 New Crude Oil Evacuation Routes to Combat Theft and Boost Production

POSTED ON July 3, 2025 •   BUSINESS & ECONOMY      BY Abiodun Saheed Omodara
Oil Rig

The Federal Government has sanctioned 37 new crude oil evacuation routes nationwide as part of reforms designed to enhance production and combat theft. 

They also indicated that the number of crude oil rigs has risen from eight in 2020 to 44.

This information was shared by the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, during the 24th edition of the NOG Energy Week 2025 held on Wednesday in Abuja.

In his keynote address entitled “Positioning Nigeria’s Upstream Oil & Gas for Energy Security, Sustainability, and Economic Resilience,” Komolafe mentioned that the new evacuation routes are part of a comprehensive strategy aimed at restoring asset integrity, ensuring the secure transportation of crude, and supporting the ongoing Project One Million Barrels initiative.

“With the approval and implementation of 37 new evacuation routes in cooperation with security agencies, we are reducing theft and enhancing accountability,” Komolafe stated.

“The positive results are already noticeable, with Nigeria’s production rising from 1.46 million barrels per day to 1.7 million bpd. Our goal is to reach 2.5 million bpd by 2026, and we are making solid progress. The number of rigs has been increasing steadily.”

“After COVID-19, we transitioned from having a mere eight rigs in the Nigerian upstream to a current count of 44 rigs. This is a significant achievement for our nation.”

He noted that Nigeria’s oil and gas sector is experiencing a historic transformation under President Bola Tinubu's administration, facilitated by the implementation of the Petroleum Industry Act and a series of new executive orders initiated in 2024.

“Let me be clear: under President Bola Ahmed Tinubu’s decisive leadership, we are witnessing a bold shift in policy direction. Executive Orders #40 on fiscal incentives, #41 on local content, and #42 on cost efficiency and contracting timelines have stimulated over $16 billion in new investments in just two years,” the NUPRC chief remarked.

Komolafe emphasized that securing crude oil infrastructure and guaranteeing domestic energy resilience are crucial aspects of the ongoing reforms.

He mentioned that the commission's Domestic Crude Supply Obligation initiative is now ensuring a steady supply for local refineries to reduce reliance on imports and strengthen Nigeria’s downstream value chain.

“Our focus extends beyond exports. We are reinforcing domestic supply chains and economic resilience by ensuring our refineries receive the necessary crude,” he stated.

Besides physical infrastructure and policy reform, Komolafe pointed out the Commission’s ongoing digital transformation program designed to streamline regulatory processes and enhance investor confidence.

“Through comprehensive digitization, we are delivering speed, efficiency, and clarity to investors. Our platforms are transparent, data-driven, and responsive,” he added.

On the social side, the NUPRC chief announced that the *HostComply* platform, a digital tool for tracking host community obligations, is beginning to yield measurable impacts.

“We have delivered real and transparent benefits to oil-producing communities. Peacebuilding, social licenses to operate, and trust are now not just buzzwords but operational imperatives,” Komolafe noted.

Regarding climate issues, he reaffirmed Nigeria’s commitment to achieving net-zero emissions by 2060 and cautioned that firms undermining the gas flare-out initiative under the Nigerian Gas Flare Commercialization Program would face strict penalties.

“It should be noted: the Commission will not tolerate any producer who undermines this national climate-action program. Regulatory measures have already been taken against non-compliant producers who missed flare capture deadlines,” he declared.

“By next year’s NOG conference, we aim to showcase operational flare capture projects that embody our climate ambitions turned into reality.”

Komolafe concluded his statements with a strong appeal to investors, encouraging them to seize the opportunity presented by Nigeria’s momentum in upstream reform.

“Nigeria is not sidelined in the energy future; we are actively shaping it. With visionary leadership, bold reforms, and a clear net-zero pathway, we are offering a pragmatic, equitable, and resilient transition model,” he asserted. “The opportunities are tangible. The reforms are effective. The future is now. To our investors, let me echo President Tinubu’s words: ‘Nigeria must not merely be open for business; it must be irresistible for investment.’”

He further promised to “focus on deepening upstream investment, accelerating reserve development, scaling up production, and enhancing domestic energy security and sustainable growth.”

He added that NUPRC would “sustain transparent, competitive licensing rounds under the Continuous Acreage Licensing Framework, accelerate exploration and derisking of frontier basins, fast-track the reactivation of shut-in assets, drive the 1MMBPD initiative through aggressive rig deployment, asset reactivation, streamlined approvals, and enhanced recovery techniques, and expand evacuation infrastructure to safeguard production. Moreover, we will deploy the Advanced Cargo Declaration System to combat theft and enhance transparency in exports.”

 

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