SPE urges rapid oil block development to hit 3mbpd target

The Society of Petroleum Engineers (SPE) Nigeria Council has urged the Federal Government and industry operators to fast-track the development of newly awarded oil and gas blocks, saying swift execution, not licensing alone, will determine whether Nigeria achieves its target of producing three million barrels of crude oil per day (bpd) by 2030.

Speaking at a pre-event press conference ahead of the 49th Nigeria Annual International Conference and Exhibition (NAICE 2026) in Lagos on Tuesday, Francis Nwaochei, chairman of the SPE Nigeria Council, said the recent award of 37 oil and gas blocks to 31 preferred bidders under the 2025 Licensing Round marked an important milestone but must be followed by rapid investment and field development.

NAICE 2026, themed “Thriving in the Evolving Global Energy Landscape: Collaborative Growth and Resilience,” will hold from August 3 to 5 in Lagos and feature more than 600 technical papers, executive panel sessions and technology exhibitions focused on the future of the energy industry.

“NAICE 2026 will serve as the first major industry platform where a broader discussion of the operational and commercial execution of the newly awarded assets will take place. Awarding blocks is only the catalyst; converting exploration licences into daily producing volumes requires rapid technology deployment, reservoir precision and disciplined capital mobilisation,” Nwaochei said.

He commended the Federal Government, the Ministry of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for conducting what he described as a transparent, market-driven licensing process under the Petroleum Industry Act (PIA).

Nwaochei noted that indigenous independent producers have become the backbone of Nigeria’s upstream industry following the divestment of onshore and shallow-water assets by international oil companies, accounting for about 60 percent of the country’s oil production.

He said local operators must demonstrate stronger technical capability, financial resilience and effective asset management to sustain output growth.

He identified financing as one of the biggest hurdles to expanding production, urging Africa to develop alternative funding sources as many Western lenders reduce exposure to fossil fuel projects. According to him, the proposed African Energy Bank, alongside regional financial institutions and private equity, could help unlock capital for new oil and gas developments.

On infrastructure security, Nwaochei called for wider adoption of digital technologies, including artificial intelligence, digital twin systems and fibre-optic pipeline surveillance, while stressing that technological solutions must be complemented by effective implementation of Host Community Development Trusts under the PIA.

He also argued for a pragmatic energy transition, saying hydrocarbons would remain central to Africa’s industrialisation for decades. However, he warned that Nigeria must reduce gas flaring and methane emissions to keep its crude competitive as international markets tighten carbon standards.