Nigeria’s floundering economy has received a lifeline with a massive increase in the nation’s daily crude oil production from 1.25 million barrels per day (mbpd) in June to 1.61 mbpd as of July 23rd.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, announced the good news at the weekend while addressing the House of Representatives Special Committee 2-Day Public/Investigative Hearing on Oil Theft/Losses.
According to the Komolafe, Nigeria remains Africa’s largest producer of crude oil, boasting proven reserves of 37.50 billion barrels and a production capacity of approximately 2.19 million barrels per day (mbpd).
“Nigeria is facing significant challenges, especially those affecting terminals at Bonny, Brass, and Forcados. This has prompted the commission to employ end-to-end production monitoring and a mass balance methodology to accurately account for losses and differentiate them from operational losses.
“The NUPRC has introduced several innovative measures to enhance transparency and accountability”.
Other innovations to ensure accountability, Komolafe noted, include the Advanced Cargo Declaration (ACD) Regulation that ensures that no crude oil is exported without proper accounting; assigning of a unique identification number (UIN) to each cargo; the Upstream Metering Regulation (UMR) which mandates reliable metering systems to account for all hydrocarbon production and exports, as well as real-time cargo tracking and digital documentation to improve visibility and efficiency in cargo operations.
The NUPRC boss further explained that with a mandate to oversee the exploration, development, production and lifting operations of crude oil and natural gas, the commission regulates both the technical and commercial aspects of operations in the nation’s upstream petroleum sector, ensuring optimal tax revenue generation, royalty collection, and cost benchmarking.
“Other areas of major focus for the commission include ensuring business continuity and production sustainability at low costs, accurate measurement and timely payment of royalties, uninterrupted crude oil, and natural gas supply to the domestic market, and maintaining safety, health, and environmental standards.
“The Petroleum Industry Act 2021 grants the commission several statutory mandates in the areas of calibration and certification of metering systems and equipment, publication of reports and statistics on upstream operations, regulatory oversight and issuance of quality and quantity certificates for exports, and determination of fiscal prices for Crude Oil and Condensate”, he said.
According to Komolafe, the strategies of the commission aim to optimize production, enhance regulatory oversight, and ensure accurate measurement and accounting.
He also noted that the commission had prioritised improving rig availability and reducing non-productive time through unlocking heavy crude oil reserves via industry workshops. These initiatives also support new Petroleum Prospecting License (PPL) awardees to achieve their first oil, among other initiatives.
He, therefore, reaffirmed NUPRC’s commitment to continued engagements with stakeholders to optimise Nigeria’s oil production and maintain its leadership position in Africa’s energy