… No IOC Has Left Nigeria- Komolafe
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that the country’s crude oil production has risen to 1.8 million barrels per day which is in with efforts to ensure energy security.
The NUPRC Chief Executive, Engr. Gbenga Komolafe disclosed this on Monday while speaking at the 42nd NAPE Annual International Conference and Exhibition.
The theme of the event was, ‘Resolving the Nigerian Energy Trilemma – Energy Security, Sustainable Growth, and Affordability.’
The development follows the regulator’s ambitious move to raise crude oil production to 2.6 million barrels per day as launched in October.
The NUPRC said it would achieve this through an additional one million barrels per day through its Project One Million Barrels Per Day Initiative.
Komolafe, represented by the Executive Commissioner, Development and Production, Mr. Enorense Amadasu, said that the theme is relevant and timely considering the global push for energy transition.
Komolafe explained that the ongoing reforms in the oil and gas sector is aimed at ensuring maximum benefits from Nigeria’s oil and gas resources for the 200 million Nigerian shareholders and investors.
He said the reforms are yielding results as the country’s oil production has risen to 1.8m barrels per day as of November 11, 2024.
The NUPRC boss said, “Although the evolving energy landscape present its unique challenges for Nigeria, therein lies a world of opportunities for stability, growth, and sustainability. It is no news that our beloved country holds vast natural resources, with oil and gas playing a significant role in national economy, regional influence, and global position.
“Yet, in the face of the changing ecosystem, Nigeria finds itself in a pivotal era to achieve balance through strategic actions for energy security, energy affordability and energy sustainability for all Nigerians. That is the trilemma we all must work to resolve. Resolving this is crucial to Nigeria’s energy independence and national security.”
On the Upstream Asset Divestment and Exit Framework in Q2 2024, the NUPRC boss noted the role of the commission in ensuring a smooth divestment exercise in line with the Petroleum Industry Act.
He said, “We are glad to report that, based on the articulated framework, four divestment and sales transactions have received ministerial consents and approvals within this period. It is also important to point out that no International Oil Company (IOC) has left Nigeria as we sometimes hear erroneously in the media.
“What the industry has experienced is portfolio rationalization which is not uncommon in other jurisdictions. Divestments give opportunities for more investments and increased local participation in the upstream. We are therefore confident that new asset holders will conduct operations in a vigorous and business-like manner for optimal value creation for enhanced energy security and sustainability in the near term.”
Speaking on Domestic Crude Supply Obligations, the NUPRC boss pledged support for local refiners in line with the provisions of the law.
“The Commission is keenly aware of its responsibility to ensure optimum crude oil supply to domestic refineries under fair and just commercial terms and in line with the provisions of the PIA. Accordingly, the NUPRC has facilitated the issuance of Guidance Templates and Guidelines that provide clarity and entrench ease of administration.
“We will continue to implement the Act and foster collaboration amongst industry actors to deepen domestic energy security, availability of products and affordability of energy commodities consistent with our mandate as enshrined in the PIA. “
Komolafe told operators and investors that the commission is deepening its regulations in a bid to ensure predictability in the industry.
He said 25 priority Regulations have been developed and 17 gazetted, while others are at various stages of development.
The CCE said, “The Regulations gives meaning to the intent of the PIA and stimulate activities of petroleum exploitation for energy security. Entrenching regulatory certainty is a cornerstone of the ongoing implementation of the Regulatory Action Plan for 2024 and the Near Term issued by the NUPRC on January 1st this year.”