Abuja / Lagos
Nigeria’s energy sector recorded mixed developments on Monday, with the Nigerian National Petroleum Company Limited (NNPC Ltd) confirming a new offshore oil discovery in the Niger Delta, even as the Dangote Petroleum Refinery raised petrol prices nationwide, underscoring the complex dynamics shaping the country’s oil and fuel markets.
NNPC Ltd announced that Chevron Nigeria Limited successfully drilled the Awodi-07 appraisal and exploration well in the shallow offshore waters of the western Niger Delta between late November and mid-December 2025. The joint venture operation with NNPC confirmed the presence of hydrocarbons across multiple reservoir layers, indicating significant oil and gas potential in the area.
“The drilling programme was completed safely and in full compliance with regulatory requirements. The well has now been secured, marking the end of the exploration phase,” NNPC said in a statement.
The discovery is expected to strengthen confidence in Nigeria’s offshore assets and support plans to increase oil production and boost energy supply. Under the joint venture, the partners are targeting an output of about 146,000 barrels per day, which could contribute significantly to national revenue and economic growth.
Energy analysts noted that such discoveries are critical for sustaining Nigeria’s position as Africa’s largest oil producer amid fluctuating global oil prices and growing domestic demand.
In a separate development, Dangote Petroleum Refinery announced an increase in the price of Premium Motor Spirit (PMS), raising the gantry price from ₦699 to ₦799 per litre, which translates to a retail price of ₦839 per litre at filling stations nationwide.
The adjustment follows the end of a temporary price support initiative introduced during the Christmas and New Year festive period, when the refinery absorbed higher costs to ease the financial burden on households.
“With the festive period concluded, PMS prices have been modestly realigned to sustainable levels to support long-term market stability and affordability,” the refinery said in a statement.
Dangote Petroleum also expressed concern that some filling stations failed to pass the festive period price reductions to consumers, limiting the intended relief for Nigerian households.
The refinery’s Chief Executive Officer, David Bird, confirmed that the facility continues to supply about 50 million litres of petrol daily, with nationwide evacuation and distribution proceeding normally. Bird emphasized that the refinery’s flexible design allows it to maintain supply even during planned maintenance activities, reinforcing its commitment to energy security and market stability.
The new oil discovery comes as a positive signal for Nigeria’s upstream sector, promising additional revenue and production capacity. Yet, the petrol price increase serves as a reminder of ongoing pressures in the downstream sector, where operators must balance affordability for consumers with sustainable business operations.
Both NNPC Ltd and Dangote Petroleum have reiterated their focus on ensuring stable supply, energy security, and long-term value for Nigerians, even as the country navigates global oil price volatility and domestic fuel demand.
Industry watchers say that coordinated efforts in upstream exploration and downstream price management are crucial for safeguarding Nigeria’s energy stability, especially as domestic consumption continues to rise and the country seeks to maximize the economic benefits of its oil resources.
For Nigerians, the week’s developments offer a mixed picture: renewed optimism from the offshore discovery, tempered by the realities of rising petrol costs. As NNPC and Dangote continue operations, stakeholders will be watching closely to see how these moves affect fuel availability, pricing stability, and domestic economic resilience.
In the broader context, the twin announcements highlight the delicate balance in Nigeria’s energy sector — leveraging exploration and refining capacity while maintaining affordability and security of supply for millions of consumers nationwide.