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•Stakeholders laud Tantita, seek support for security efforts
By Michael Nwadike
Nigeria’s latest oil licensing round has opened a fresh window of opportunity for the country’s upstream petroleum industry, with the Federal Government targeting an additional 500 million barrels in reserves and 300,000 barrels per day in production within three years.
The 2025 licensing round, conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), attracted significant interest from investors, with 143 companies submitting 200 bids for 37 of the 50 blocks offered during the commercial bid phase.
The exercise has renewed optimism about Nigeria’s ability to attract investment, expand crude oil production and strengthen its position in the global energy market.
But industry stakeholders say the success of the ambitious targets will depend on more than awarding oil blocks and attracting investors.
They argue that the country must also maintain a secure operating environment, protect pipelines and other critical petroleum infrastructure, reduce crude oil theft and preserve peace across the Niger Delta, where much of Nigeria’s oil production takes place.
For them, the equation is straightforward: new reserves will only translate into increased national output if the infrastructure required to produce, transport and export crude remains secure.
This has placed renewed attention on pipeline surveillance and the activities of security contractors working alongside government security agencies to protect oil assets across the Niger Delta.
*New blocks, new production expectations*
The 2025 licensing round represents part of Nigeria’s broader effort to unlock new investment and improve performance in the upstream petroleum sector.
The NUPRC said the blocks offered during the exercise have the potential to add about 500 million barrels to Nigeria’s crude oil reserves.
The assets are spread across a number of geological terrains, including the Niger Delta Onshore, Niger Delta Shallow Water, Niger Delta Deep Offshore, Benin Basin Onshore, Anambra Basin Onshore, Chad Basin Onshore and Benue Trough.
According to NUPRC Chief Executive Officer, Mrs Oritsemeyiwa Eyesan, Nigeria’s existing reserves of crude oil and condensate stand at about 37.01 billion barrels, while gas reserves are estimated at 215.19 trillion cubic feet.
Eyesan said the assets offered in the licensing round were recovered from existing operators and returned to the market to give new investors an opportunity to develop them.
“The reason why we are in the market is because of the blocks that we have recovered from existing operators,” she said.
The commission’s approach reflects the government’s desire to ensure that petroleum assets do not remain dormant and that blocks with commercial potential are assigned to investors capable of developing them.
The expectation is that successful bidders will move from the licensing stage into exploration, appraisal, development and, eventually, production.
*That transition will be crucial*
Awarding an oil block does not automatically increase national output. The block must be explored, wells must be drilled, commercial discoveries must be developed and crude must ultimately be transported to market.
It is at this point that security becomes a critical component of the production equation.
*Security could determine how much oil Nigeria produces*
Nigeria has historically struggled with losses caused by crude oil theft, pipeline vandalism and illegal tapping.
These activities have affected production volumes, government revenues and the reliability of crude supply.
They have also created environmental problems in oil-producing communities and contributed to investor concerns about operating in the Niger Delta.
As Nigeria seeks to increase production, stakeholders believe that the country cannot afford a return to the levels of insecurity that previously undermined output.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the licensing exercise could have significant implications for the Nigerian economy, particularly at a time when the global energy industry is undergoing major changes.
“We are in the age of energy transition. NUPRC’s operation in this exercise is good for the economy. It will boost foreign reserves, firm up the naira and macroeconomic environment while deepening foreign capital inflows to the domestic economy,” Yusuf said.
He added that improved security of oil and gas assets would be important in encouraging further investment and increasing production.
The point is particularly relevant because investors committing billions of dollars to exploration and production require confidence that their assets, infrastructure and operations can function without persistent disruption.
A producing field is valuable only when the crude can be safely transported and sold.
*Pipeline Protection as an Economic Imperative*
The role of pipeline surveillance has therefore become an increasingly important part of Nigeria’s petroleum security strategy.
The Federal Government has engaged Tantita Security Services Nigeria Limited (TSSNL), led by High Chief Government Oweizide Ekpemupolo, popularly known as Tompolo, to support the protection of oil and gas assets in the Niger Delta.
TSSNL works alongside other security agencies in surveillance operations designed to identify pipeline breaches, prevent illegal tapping and support the uninterrupted movement of petroleum resources.
Supporters of the arrangement argue that sustained surveillance has contributed to a reduction in pipeline breaches and crude theft in areas covered by the operations.
*The significance of this goes beyond security*
When crude theft is reduced and pipeline infrastructure is protected, more of the oil produced by legitimate operators can enter the formal supply chain.
That can translate into higher accounted-for production, increased government revenues and improved foreign exchange inflows.
It can also provide greater certainty for oil companies, refineries, exporters and other participants in the petroleum value chain.
Abuja-based energy expert, Steven Martins, said the latest licensing round represented more than another administrative exercise.
He described it as a strategic recalibration of Nigeria’s energy ambitions at a time when the country is under pressure to increase production, attract capital and position itself effectively in the era of energy transition.
“As NUPRC is looking forward to harvesting additional 500 million barrels to the national crude oil reserve from the 2025 bid round, these extra barrels expectedly will be driven by the commencement of operational activities of the companies that emerged as winners of the 37 oil and gas blocks,” Martins said.
He argued that protecting oil assets should remain a priority for stakeholders as new operators prepare to commence activities.
His position reflects a wider industry concern: Nigeria cannot afford to add new production capacity while allowing existing infrastructure to remain vulnerable.
*Why peace matters in Niger Delta*
Beyond the physical protection of pipelines, stakeholders say peace in the Niger Delta remains essential to the success of the new production drive.
The region has for decades been at the centre of Nigeria’s petroleum industry, but it has also experienced environmental degradation, unemployment, youth restiveness, disputes over resource control and conflicts over the distribution of oil-related benefits.
These challenges have often complicated petroleum operations.
For the latest production ambitions to succeed, stakeholders say communities must remain part of the process.
The participation of traditional rulers, youth groups and community leaders could help strengthen local ownership of security initiatives and reduce the risk of conflict around oil infrastructure.
Traditional rulers and community leaders in the region have expressed support for continued pipeline surveillance, citing improvements in security and employment opportunities in some oil-producing communities.
President-General of the Isoko Development Union, Christopher Akpotu, welcomed a vote of confidence passed on TSSNL by the National Assembly following consideration of petitions against the company.
He urged Niger Delta stakeholders to concentrate on the economic opportunities available in the oil and gas industry instead of allowing internal disagreements to undermine potential benefits.
“There are many opportunities in the oil and gas sector. We should focus on how to derive more benefits rather than fighting over what has already been allocated,” he said.
Akpotu also warned that prolonged disagreements among communities could create opportunities for outsiders to benefit from resources and opportunities that should ordinarily accrue to people in the region.
While acknowledging concerns about the distribution of benefits, he said the surveillance contract had created opportunities for many youths and communities.
“The truth is that many communities and youths have benefited from the surveillance contract. It may not be evenly distributed, but the impact is evident,” he said.
He nevertheless called for greater involvement of traditional rulers, youths and community leaders to ensure that benefits are distributed more fairly and that the security arrangement remains sustainable.
*From crisis management to long-term planning*
President-General of the Niger Delta Progressive Alliance, Nse Victor Udoh, has argued that pipeline surveillance should be viewed as part of a wider national energy security strategy.
According to him, pipeline protection does not cover the entire petroleum value chain, but its importance lies in safeguarding one of the critical links connecting production to the market.
“Energy security encompasses the full value chain, from exploration and production to refining, distribution, pricing policy, and subsidy frameworks. Pipeline surveillance does not manage these domains,” Udoh said.
He added that the mandate of pipeline surveillance was specific: protecting critical infrastructure that transports petroleum resources.
“Without secure transportation channels, production targets falter, refining plans collapse, exports decline, and fiscal projections become unreliable,” he said.
This argument highlights the relationship between physical security and economic predictability.
When crude flows are secure, producers can plan more effectively. Export commitments can be met with greater confidence, refineries can plan their feedstock requirements and government can make more realistic revenue projections.
For investors, predictable operations can also improve the risk profile of Nigeria’s petroleum industry.
The implication is that pipeline surveillance does more than prevent theft. It can help restore confidence in the reliability of the country’s energy system.
*The environmental cost*
The security of oil infrastructure also has an environmental dimension.
Pipeline vandalism, crude theft and illegal refining have contributed to pollution in parts of the Niger Delta, affecting waterways, farmlands and livelihoods.
Repeated pipeline breaches can contaminate land and water, while illegal refining activities can leave behind polluted sites and create additional environmental hazards.
For communities whose livelihoods depend heavily on fishing and agriculture, the consequences can be severe.
Reducing pipeline breaches and illegal oil activities could therefore generate environmental benefits alongside the economic gains associated with higher production.
However, stakeholders also stress that surveillance alone cannot resolve the region’s environmental challenges.
Oil companies, regulators, government agencies and host communities must continue to address remediation, responsible operations and the long-term restoration of affected ecosystems.
*Community benefits will be critical*
President-General of the Ughelli Descendants Union, Sam Akpemegi, said surveillance activities had contributed to improved security in communities covered by the operations.
According to him, both visible security measures and intelligence-based strategies have been deployed.
He said the company’s presence had produced benefits for traditional institutions and residents and called for continued support.
Similarly, the Odiologbo of Ofagbe Kingdom, Ogaga Ikpoku, described continued support for pipeline surveillance as important to peace and stability in the region.
Such community perspectives are significant because the sustainability of oil infrastructure protection ultimately depends partly on cooperation between security operators and the communities where the infrastructure is located.
Local intelligence, community engagement and employment opportunities can complement formal security operations.
But the reverse is also true.
Where communities feel excluded from the benefits of petroleum activities, grievances can undermine the operating environment.
For that reason, the next phase of Nigeria’s upstream expansion will require not only physical security but also stronger relationships between operators, government institutions and host communities.
Turning 500 million barrels into reality
The 2025 licensing round has created a significant opportunity for Nigeria, but the difficult work begins after the awards.
The country must now ensure that successful bidders can move rapidly from licensing to exploration and production.
That requires capital, technology, regulatory certainty, skilled personnel and infrastructure.
Above all, it requires an operating environment in which investors can make long-term commitments with reasonable confidence.
The target of adding 500 million barrels to reserves and achieving 300,000 barrels per day of additional production within three years is ambitious.
Meeting it will therefore require coordination across the entire petroleum ecosystem.
Regulators must provide clarity and enforce standards. Investors must develop their assets. Security agencies and surveillance contractors must protect critical infrastructure. Host communities must be involved in the process, while government must ensure that the economic benefits of increased production are translated into broader national development.
The bigger test for nigeria
Ultimately, the success of the 2025 licensing round will not be measured by the number of companies that submitted bids or the number of blocks awarded. It will be measured by barrels produced.
For Nigeria, the central challenge is therefore how to convert the potential represented by the new oil blocks into sustained production and revenue.
That will require the country to address the vulnerabilities that have historically prevented it from fully benefiting from its petroleum resources.
Pipeline protection, reduced oil theft and peace in the Niger Delta are not substitutes for investment or regulation. They are part of the foundation on which those investments depend.
As new operators prepare to develop the awarded blocks, maintaining that foundation will be crucial.
If Nigeria succeeds in protecting its oil infrastructure, sustaining peace in producing communities and attracting the investment required to develop new assets, the 2025 licensing round could mark an important turning point for the upstream sector.
But if insecurity, crude theft and infrastructure breaches undermine production once again, the country could struggle to translate its new reserves into actual barrels and revenue.
Nigeria therefore faces a simple but consequential task: protect what it already produces while creating the conditions to produce more.
The 500 million barrels targeted from the latest licensing round may lie beneath new blocks, but unlocking their value will depend on what happens above ground—in the pipelines, communities and security environment that connect Nigeria’s oil resources to the national economy.
For the country’s 300,000 barrels-per-day ambition, peace, protection and production will have to move together.
