The Federal Government has announced a new cluster and nodal development initiative aimed at unlocking an additional 810,000 barrels of crude oil per day from Nigeria’s deepwater fields.

Spearheaded by the Nigerian Upstream Petroleum Regulatory Commission, the move is part of a broader strategy to revive offshore oil production, which has seen significant decline in recent years, according to The Punch.

If fully executed, the initiative could boost Nigeria’s total monthly crude output to about 2.51 million barrels per day, including condensates.

This is expected to significantly boost the country’s revenue generation capacity and enhance compliance with OPEC+ production quotas.

Speaking at a stakeholders’ workshop on deep and shallow water cluster/nodal development in Abuja on Thursday, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe—represented by the Executive Commissioner for Economic Regulation and Strategic Planning, Babajide Fashina—said the initiative was conceived in response to declining offshore production and the need to tap into underutilised reserves to drive sustainable growth.

The workshop was themed: “Harnessing the Potential of Deep/Shallow Water Oil and Gas Accumulations Through Clusters/Nodal Development in Nigeria.”

“At the peak of our deepwater oil production in 2016, Nigeria was producing about 800,000 barrels of oil per day. Sadly, that figure has now dropped to below 500,000 barrels per day.

“Our data shows that we have over 5.13 billion barrels of oil and 13.53 trillion cubic feet of gas still sitting untapped in our deepwater acreages. Of this, 3.59 billion barrels fall under 2P reserves, meaning they are proven and probable but yet undeveloped,” Komolafe stated.

According to him, a preliminary regulatory review of Field Development Plan approvals suggests that ongoing and planned developments could unlock approximately 1.55 billion barrels of oil and condensate, along with 1.49 trillion cubic feet of associated gas.

“Once these approved FDPs are executed, we could see peak oil production rise by as much as 810,000 barrels of oil per day. The question we must ask is: what’s holding us back, and how can we overcome the barriers together?” he queried.

The Commission boss said a new Shallow and Deepwater Cluster Development Committee had been inaugurated within the NUPRC to work closely with international oil companies and indigenous producers to identify and mature these opportunities.

“Our goal is not just more production, but more value. Through this collaborative approach, we want to maximise returns from existing assets, ramp up volumes, and reduce unit technical costs,” he noted.

Komolafe expressed concern that, despite their vast potential, deepwater fields had become underutilised due to challenges including funding gaps, infrastructure constraints, regulatory bottlenecks, and delays in project approvals.

“Our eight FPSOs, Floating Production Storage and Offloading units, are grossly underutilised today. We can do more if we work together,” he said.

He noted that deep offshore reserves represent 18 percent of Nigeria’s total oil and condensate reserves, led by major discoveries such as the Bonga, Agbami, Egina, and Erha fields.

“Today, we have cumulatively produced over 4.4 billion barrels from our deepwater operations, thanks to companies like Shell, ExxonMobil, TotalEnergies, Agip and Chevron. But we must now move beyond the past and look toward unlocking future barrels,” Komolafe said.