Oil and Gas
At NOG Energy Week, NNPC, Partners Sign Landmark Gas Agreements
.. Deals Set to Catalyse Industrial Growth, Enhance Nigeria’s Energy Security
By Aliyu Musa
The Nigerian National Petroleum Company Limited (NNPC Ltd) today announced the signing of six strategic agreements with key partners, ranging from Memorandum of Understanding (MoU), Gas Supply Agreement (GSA), and other gas transportation deals, marking a significant milestone in Nigeria’s journey towards industrial revitalisation and enhanced energy security.
The agreements, executed on the sidelines of the ongoing 25th NOG Energy Week, in Abuja on Tuesday, include: an MoU with Ajaokuta Steel Company Limited (ASCL) ; a Gas Sale Aggregation Agreement (GSAA) with Ajaokuta Steel Company Limited (ASCL); a GSA with UTM FLNG; a Network Entry Agreement with Chevron Nigeria Ltd; a Network Entry Agreement with AGPC, and a Network Entry Agreement with NNPC Exploration & Production Ltd (NEPL).
According to the GCEO NNPC Ltd, Engr. Bayo Bashir Ojulari, the agreements underscore NNPC Ltd.’s commitment to advancing the Federal Government’s gas-based industrialisation agenda, driving sustainable economic growth and enhancing Nigeria’s energy security.
“What we are witnessing today is not just about signing agreements. It is about igniting the engine of Nigeria’s industrialisation. Gas is the key. It is source of revenue and profit. It is also the only product that can have that level of industrial impact on Nigeria, more than any other hydrocarbon.”, Ojulari stated.
He particularly described the agreements as a testament to NNPC Ltd’s shared commitment to transparency, efficiency, and a standardised framework for Nationwide gas utilisation, which will unlock new supply capacity for the domestic market and solidify the role of gas as a catalyst for economic transformation.
Ojulari noted that the agreements signal a new era of strategic partnerships that will drive local content, enhance energy security and accelerate Nigeria’s journey towards becoming a global industrial powerhouse. He described NNPC Ltd as the partner of choice. “We are on a journey, even as we look forward to greater collaboration with industry partners.”
A cornerstone of the signing ceremony was the agreement with Ajaokuta Steel Company Limited (ASCL). In the MoU, NNPC Ltd. and ASCL commit to extend collaboration beyond gas supply, aiming to catalyse the production of raw materials for oil and gas pipes, a critical enabler for major infrastructure projects such as the African- Atlantic Gas Pipeline (AAGP) and the Escravos -Lagos Pipeline System (ELPS) 3.
The MoU is anchored on two major pillars: the revitalisation of the Ajaokuta Steel Complex and the expansion of domestic gas utilisation through the Nigerian Gas Transportation Network Code.
This was complemented by the execution of a 20-year Gas Sale and Aggregation Agreement (GSAA) between NNPC E&P Limited (NEPL), Gas Aggregation Company of Nigeria Ltd/Gte (GACN), and ASCL. This agreement will see the supply of 3MMscf/d of Firm Contract Volumes and 47MMscf/d of Interruptible Contract Volumes to be used as feedstock for the power plant servicing the steel complex .
NNPC Ltd/ Seplat JV also took a major step towards commercialising Nigeria’s vast natural gas resources by signing a 15-year Wet Gas Sale and Purchase Agreement (WGSPA) between the NNPC Ltd/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture and UTM FLNG Ltd.
Under the agreement, the Joint Venture will supply 200 million standard cubic feet of gas per day (MMscf/d) to the UTM Floating LNG (FLNG) project, providing the long-term feedgas certainty required to support financing and position the project for a Final Investment Decision (FID) in the fourth quarter of 2026.
Further demonstrating its commitment to a regulated and efficient gas market, NNPC Ltd. announced the successful migration of legacy interconnection agreements to the new Nigerian Gas Transportation Network Code. This involved the signing of Network Entry Agreements (NEnAs) with three major gas producers.
These agreements, signed with Chevron Nigeria Limited (CNL), AGPC, and NEPL, will inject up to 800MMscf/d of natural gas into the domestic transportation network. This will serve Nigeria’s power plants, Gas-Based Industries (GBIs), and industrial clusters, significantly enhancing network connectivity and operational flexibility while improving the security of gas supply.
The signing of the various landmark agreements was witnessed by the Honourable Minister of Petroleum (Gas), Rt. Hon. Ekperikpe Ekpo; Honourable Minister of Petroleum ( Oil), Senator Heineken Lokpobiri; Special Adviser to the President on Energy, Ms. Olu Verheijen; Commission Chief Executive of NUPRC, Mrs Oritsemeyiwa Eyesan and Authority Chief Executive of NMDPRA, Rabiu Umar.
These agreements came within the milestone 25th NOG Energy Week themed “Advancing Energy Ambitions for Competitive & Resilient Economies,” which spotlighted the critical role of strategic partnerships in delivering energy and industrial value.
By Seyi Balogun
Data from Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on latest production indicate that Nigeria’s daily oil production declined by four per cent in July 2026, falling to 1.67 million barrels per day (mbpd) from 1.74mbpd recorded in June, to the production above the 1.5mbpd OPEC quota for the third consecutive month in July.
According to the NUPRC data, the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate during the month, bringing total daily production to 1.67mbpd.
Daily combined crude oil and condensate production peaked at 1.78mbpd during the month, while the lowest output stood at 1.57mbpd.
The July performance followed production levels of 1.70mbpd in May and 1.74mbpd in June. Earlier in the year, production stood at 1.663mbpd in April, 1.546mbpd in March, 1.483mbpd in February and 1.627mbpd in January.
The NUPRC attributed the July decline to operational challenges at the Erha and Akpo fields, which affected production during the period under review.
The regulator said the disruptions constrained production volumes and contributed significantly to the reduction in national output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures to maintain production efficiency and minimise the impact of operational constraints.
The latest figures indicate that although Nigeria continues to maintain production above its OPEC quota, operational disruptions at key producing assets remain a factor affecting overall output.
By Aliyu Musa
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has welcomed the Federal Government’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing it as a landmark reform that significantly enhances Nigeria’s competitiveness for deep offshore investment and strengthens the nation’s pathway towards achieving its 3 million barrels of oil per day (MMbopd) production ambition by 2030.
The new Order establishes a transparent, predictable and globally competitive fiscal framework for qualifying greenfield deep offshore developments. It provides the certainty required to unlock long-term capital, accelerate Final Investment Decisions (FIDs), and maximise value from Nigeria’s offshore resources.
The framework, which reinforces Nigeria’s position as one of the world’s attractive destinations for deep offshore oil and gas development, is expected to unlock over US$50 billion in new investments, including major projects starting with Bonga South-West which was approved in March 2026, and the Zabazaba and Owowo Deep Offshore projects. Bonga South West is expected to be the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008.
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, described the Order as one of the most significant policy interventions for the upstream sector in recent years.
“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development. Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought.”
He added: “For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets. It strengthens our confidence in achieving our strategic production ambition of 3 MMbopd while creating greater value for our shareholders and the Nigerian economy.”
The GCEO noted that recent reforms across the petroleum sector have already stimulated more than US$34 billion in new investment commitments. The Deep Offshore Incentives Order is expected to build on that momentum by enabling timely FIDs on strategic offshore developments.
The GCEO thanked President Bola Ahmed Tinubu, GCFR, for his relentless leadership and unwavering commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through several Presidential Executive Orders which have strengthened the nation’s oil and gas sector.
This milestone reinforces NNPC Limited’s commitment to driving sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation.
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