FG Cuts Approval Time for Idle Oil Wells to Boost Production Amid High Crude Prices
- The federal government has reduced approval time for reactivating idle oil wells to a few hours
- Indigenous oil firms are showing interest due to lower costs and faster timelines
- The government is focusing on dormant wells while addressing broader sector challenges
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
The federal government has reduced the approval timeline for reactivating idle oil wells from several weeks to a few hours as part of efforts to increase crude oil production and benefit from favourable global prices.
The initiative, driven by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), is aimed at helping operators quickly resume production from dormant assets, according to a report by Bloomberg.
Source: Getty Images
Faster approvals to drive oil output
According to the report, approvals that previously took between two and six weeks are now granted within hours of submission.
Confirming the development, a spokesperson for the commission said the agency has adopted “speedy approvals” for activities that can increase oil production.
The official added that the move reflects the urgency of the government’s plan to take advantage of rising crude oil prices, which are hovering close to $100 per barrel.
Indigenous firms show growing interest
The policy shift is already attracting attention, particularly from indigenous oil companies looking to revive suspended or underutilised wells.
Industry sources noted that reactivating dormant wells is generally faster and less capital-intensive than drilling new ones, making it an attractive option for operators seeking quick returns.
The report highlighted that such re-entry projects can deliver output faster compared to greenfield exploration, which often takes years to develop.
Global oil dynamics increase competition
Nigeria’s renewed push comes amid changing global oil trade patterns, as buyers seek alternative suppliers due to geopolitical tensions in traditional markets, especially in the Middle East.
This has intensified competition among producers, including Nigeria and Angola, to capture market share and maximise revenue.
To support operations, the NUPRC has also streamlined approvals for evacuation processes and the use of barges at production sites and export terminals.
Production levels remain below target
Despite these efforts, Nigeria’s oil output has remained below expectations in recent months.
Production dropped to about 1.31 million barrels per day in February, partly due to maintenance at a major facility operated by Shell Plc.
The figure is significantly below Nigeria’s target of 1.84 million barrels per day and its historical peak of over 2 million barrels per day.
Even during the 2022 oil price surge triggered by the Russian invasion of Ukraine, Nigeria’s output averaged about 1.34 million barrels per day.
Minister urges operators to act quickly
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has also urged operators to take advantage of the current market conditions.
Speaking at an industry meeting in London, he said the global environment presents a short-term opportunity for Nigeria to increase output.
Lokpobiri encouraged companies to focus on initiatives such as re-entry programmes and in-field developments that can deliver quick results.
Source: Getty Images
He also highlighted reforms aimed at improving investor confidence, including executive orders and fiscal incentives, while calling on investors to commit to more final investment decisions.
While the faster approval process could improve output in the short term, challenges such as oil theft, infrastructure gaps, and underinvestment continue to affect Nigeria’s production outlook.
Nonetheless, the latest move signals a more proactive regulatory approach as the country seeks to regain lost production and strengthen its position in the global energy market.
Dangote Refinery receives 17.5 million Barrels of crude
Legit.ng earlier reported that the Dangote refinery received 19 cargoes totalling about 17.56 million barrels between February and March, 2026.
Several large shipments came through global trading firms and foreign sources, including the United States.
The refinery's procurement strategy aims to ensure a steady feedstock supply and sustained operations
Source: Legit.ng
