That is, if everything goes according to plan and the government can successfully attract the attention of the global upstream market. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has opened the new tender round for January that will include 50 new blocks across the Nigerian energy market.

The blocks will be a mixture of developments, with 19 shallow-water, 15 onshore, 15 frontier, and 1 deepwater block. The hope, according to the Nigerian federal government, is to attract upwards of $10 billion of upstream investment and revive the Nigerian oil industry.

It comes as no surprise to insiders that the government has offered such a vast upstream opportunity for the energy companies of the world, as the Nigerian crude oil daily losses fell to 9,600 barrels per day in July of last year, the lowest it has been for 16 years.

Aside from increasing output capacity from the oil and gas market, the federal government is aiming to revive underutilized oil blocks that have been waiting in the wind for an energy company to come along and develop the resources.

Notably, the Nigerian National Bureau of Statistics has reported that the third quarter of last year saw an average daily crude production of 1.64 million barrels per day. The growth of the sector in the central African nation comes on the back of the Dangote refinery finally beginning operations.

Nigeria has vast amounts of natural gas and oil waiting to be extracted, as is the case for most African nations. Every year, governments around the world open licensing rounds and tender bids to attract some of the largest and even a few smaller energy companies.

The Nigerian regulator has linked the new round to the Petroleum Industry Act 2021, which provides the basis for the contractual and fiscal framework for the licensing round in Nigeria. This exemplifies the government’s aim to increase oil and gas production and reduce reliance on imports of energy resources.

The Dangote Refinery stands as the major driver of upstream production in Nigeria and proves to the world that the African continent is capable of matching the output capacity standards of the international market. With African frontier basins expected to attract major investments this year, the future of the African upstream market is looking as promising as a warm cup of coffee on a cold winter morning.

“The country should be seen as a business, hence a strategy for its growth, maintenance and sustainability must be ensured by its leadership.” – Tunde Kehinde Co-founder, Lidya

With the ongoing war in Ukraine and the United States’ decision to capture the President of Venezuela, the oil and gas market is facing a tough year ahead. However, the realization that the African upstream is set to increase output this year will provide a sense of calm to an ever-increasingly volatile market. With some market analysts noting that this year may be a tough one for the international market, Nigeria is attempting to attract a wave of new investors in its upstream market.