By Adedapo Adesanya

Oil gained about $1 on Tuesday on the impact of the latest US sanctions on Russian oil and the optimism over a potential end to the U.S. government shutdown, although oversupply concerns limited gains.

Brent crude increased its value by $1.10 or 1.72 per cent to $65.16 per barrel and the US West Texas Intermediate (WTI) crude climbed 91 cents or 1.51 per cent to $61.04 a barrel.

Investors continued to assess the fallout from the US sanctions on Russia, and their impact on both crude oil and refined fuel markets.

Russia’s Lukoil declared force majeure at an Iraqi oilfield it operates, marking the biggest fallout yet from the sanctions imposed last month.

Restricted fuel exports due to the sanctions are propping up oil prices in the face of a crude oil glut.

Following the October 22 US sanctions on Lukoil and Rosneft, Iraq has stopped all cash and crude payments to Lukoil. Last week, reports emerged that Iraq’s state oil marketing company SOMO had canceled three crude loadings from Lukoil this month after the US sanctioned the second-biggest Russian oil producer last month.

Following the US sanctions on Lukoil and Rosneft, oil traders and operators globally are steering clear of any cargoes of these two biggest Russian oil firms to avoid drawing the attention of the Donald Trump Administration and being slapped with secondary sanctions.

After the US sanctions on Lukoil and Rosneft, “as a result of Russia’s lack of serious commitment to a peace process to end the war in Ukraine,” Lukoil announced it would sell all of its international assets, and reached a preliminary agreement with Switzerland-based commodity trader Gunvor to sell these.

Reuters also reported that Middle Eastern producers Saudi Arabia, Iraq, and Kuwait will raise crude oil supplies to India in December as Indian refiners seek alternatives to Russian barrels.

The markets also saw support as the longest government shutdown in US history could end this week after the Senate approved a compromise that would restore federal funding. The Republican-controlled House of Representatives is due to vote on the deal later on Wednesday.

Worries about crude oversupply are curbing price gains with the main cause of this being the significant expansion of supply by the Organization of the Petroleum Exporting Countries and allies (OPEC+).

Earlier this month, OPEC+ agreed to increase December output targets by 137,000 barrels per day, but also agreed to a pause in increases in the first quarter of next year.

Market analysts noted that the alliance which also Russia, has added 2 million barrels per day of output since April, and a willingness within the group to reverse voluntary production cuts further after the first quarter pause could add an extra 1 million barrels per day in the coming year.

By Adedapo Adesanya

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the commencement of the 2025 Licensing Round, effective December 1.

The commission’s chief executive, Mr Gbenga Komolafe, made the announcement at the NUPRC’s Project 1MMBOPD Additional Production Investment Forum in London on Tuesday.

In a statement issued today, the NUPRC Head of Media and Strategic Communication, Mr Eniola Akinkuotu, quoted Mr Komolafe as saying the announcement followed the approval of President Bola Tinubu, who also serves as the Minister of Petroleum Resources, in accordance with the Petroleum Industry Act.

“We are announcing that we are ready, following the approval of the Minister of Petroleum Resources in line with the Petroleum Industry Act, to commence the 2025 Licensing Round beginning from December 1, 2025,” he said.

The 2025 Licensing Round is aimed at unlocking Nigeria’s undeveloped and fallow oil and gas fields, with a particular focus on gas assets.

Earlier, Business Post reported that there were expectations that fresh licensing would add 1.7 million barrels and 7.7 trillion cubic feet of gas from 43 Field Development Plans (FDPs).

According to Mr Komolafe, the initiative seeks to accelerate upstream production and bring previously discovered but unexploited fields into commercial operation.

Licensing rounds have been a key feature of Nigeria’s upstream sector for decades. Major rounds were conducted in 2000, 2005 and 2007, while the 2010s saw smaller, targeted rounds for marginal fields and deepwater assets.

These exercises were designed to attract investors and stimulate production, although some blocks awarded in earlier rounds stalled due to technical, financial or regulatory challenges.

The NUPRC is expected to publish detailed guidelines, including the list of blocks on offer, pre-qualification requirements, and submission timelines, ahead of the licensing round to ensure transparency and clarity for all prospective investors.

By Adedapo Adesanya

The chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, says the 43 Field Development Plans (FDPs) recorded this year can unlock 1.7 billion barrels of crude and 7.7 trillion cubic feet of gas in Nigeria.

Speaking at the 43rs Annual International Conference and Exhibition (AICE) of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos on Monday, he said the development depicts significant progress in Nigeria’s upstream sector.

The NUPRC chief, who was represented by the Director for Subsurface Development of the agency,  Emmanuel Mac-Jaja, noted that these FDPs reflected a resurgence in investments.

“In 2025 alone, 43 new Field Development Plans (FDPs) were approved, unlocking 1.7 billion barrels of oil and 7.7 trillion cubic feet of gas, backed by over $20 billion in committed capital,” he stated.

Mr Komolafe added that major Final Investment Decisions(FIDs) including the $5 billion for Bonga North, $500 million for Ubeta Gas, and $2 billion for Shell’s HI Gas Project, unlocking nearly 2 trillion standard cubic feet of gas.

The NUPRC boss stated that indigenous participation continues to deepen, with local acquisition deals exceeding $5 billion, signaling growing confidence in homegrown players, noting that Nigeria’s push to reignite oil and gas exploration and production has entered a new phase. According to him, Nigeria is at a defining moment in global energy one of transition, transformation, and opportunity.

Speaking on balancing transition with reality, the NUPRC boss observed that while the global shift toward renewables is gaining momentum, oil and gas will remain indispensable for decades to come, particularly in developing economies where energy access remains a critical challenge.

On upstream reforms powering growth, Mr Komolafe outlined several ongoing initiatives aimed at repositioning Nigeria’s upstream sector for long-term progress.

These, the NUPRC chief said, include advanced data systems that involve the use of cutting -edge technologies like stress field detection and an upgraded National Data Repository to de-risk exploration; continuous acreage licensing, which provides a transparent and predictable framework for global competitiveness; and the Project One Million Barrels, a push to restore and grow daily production through rig reactivation and well optimization.

He added that deepwater expansion, through cluster development and shared infrastructure, is helping to cut costs and accelerate first oil, while frontier basin development leverages the Petroleum Industry Act (PIA) to explore untapped basins across Nigeria.

On the increase in investments, the NUPRC head highlighted significant progress driven by these reforms. Rig activity, he said, has risen from just eight in 2021 to well over 40 today, reflecting renewed investor confidence in Nigeria’s upstream sector.

On environmental stewardship, Mr Komolafe reaffirmed the NUPRC’s commitment to responsible operations through key initiatives such as gas flare commercialisation, the Decade of Gas, and the Presidential CNG Initiative, all designed to turn waste into wealth.

He also spotlighted the Commission’s Upstream Decarbonisation Framework, which integrates methane monitoring, carbon capture, and access to carbon finance.

In addition, the Host Community Development Trust, powered by the HostComply platform, ensures transparency, accountability, and shared prosperity for oil-bearing communities.

The NUPRC chief expressed confidence that the reforms underway would firmly position Nigeria as a global energy hub once again.