Nigeria has introduced a rapid approval system for restarting inactive oil wells, reducing processing time from several weeks to just a few hours as it seeks to lift crude output amid firm global prices.

The Nigerian Upstream Petroleum Regulatory Commission is prioritizing applications tied to production increases, extending expedited handling not only to well reactivation but also to logistics such as crude evacuation and barge operations at terminals. This reflects a broader effort to remove administrative bottlenecks affecting output.

Recent application volumes have been driven largely by domestic operators aiming to return mature wells to service. Regulators have actively supported this shift by shortening review timelines that previously ranged between two and six weeks.

Reactivating existing wells presents a faster and more cost-efficient pathway compared with new drilling campaigns. Developing new wells typically requires extended preparation periods, while even after completion, it can take around four weeks for crude to reach the surface.

The push comes as Nigeria works to reverse declining production. Output dropped to 1.31 MMbpd in February, marking a 17-month low, mainly due to maintenance at a 225,000 bpd facility operated by Shell Plc.

Despite historically producing above 2 MMbpd, current levels remain below that threshold, limiting the country’s ability to fully benefit from elevated oil prices. In 2022, Nigeria averaged 1.34 MMbpd, during a period when crude prices climbed to about $130 per barrel following Russia’s invasion of Ukraine.

Regulatory approvals have already supported increased activity. In 2024, around 500 permits were granted to reopen previously shut-in wells, including projects linked to Heirs Energy and Seplat Energy Plc. The government has set a production goal of 1.84 MMbpd for the current year, though reaching this level remains challenging.