… Crude Oil Theft Reduced By Over 40% In 2024— Komolafe
The Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe has predicted a good year for the oil and gas industry under the new United States President, Donald Trump.
He also said that the regulator has donated a building to host the African Energy Bank (AEB) as part of moves to position the country and the continent for an oil boom.
Komolafe said Trump’s stance suggests pro-oil and gas policies, unlike his predecessor, who favoured renewables over hydrocarbons.
The NUPRC boss made the remark on Thursday at a stakeholders’ forum in Abuja.
The NUPRC boss highlighted growth in the national oil and gas reserves by 1.45 per cent and 0.206 per cent respectively, in 2024 compared with 2023 and oil production rose by 26 per cent from April 2023 to November 2024.
He said active rig count increased from an average of eight in 2021 to 38 representing 79 per cent growth adding that, “With effective collaboration with the security agencies, the theft and deferment has reduced drastically by more than 40 per cent in the last year.”
Komolafe said, “Renewable energy companies faced declines, with U.S. solar giant First
Solar dropping over 10 per cent. These market reactions hint that Trump’s second term will prioritize traditional energy sectors, potentially limiting support for renewables while advancing oil and gas expansion.
“This is good news for the Nigerian upstream as we do not exist in isolation. This is bringing tremendous hope and renewed vigour to focus on our intentions to develop the industry.”
The CEE reiterated the prospects of the industry in 2025, adding that a target has been set for players within the value chain with a view to reaching 2.1 million barrels per day production.
Recall that Nigeria’s N49.74tn 2025 budget is predicated on crude oil production of 2.062M barrels per day at $75 per barrel.
“Our current production is averaging 1.7M barrels leaving a deficit of about 350,000 barrels to be bridged. To avert budget deficit and revenue gap, the commission launched the project 1M barrel per day incremental production initiative during its 3rd year anniversary,” the NUPRC boss said.
In order to drive growth in the sector and position the continent, the NUPRC boss said the regulator has provided a building for the African Energy Bank headquarters.
Komolafe said, “In line with boosting Nigeria’s aspiration of becoming the energy hub of the continent. The Commission through the National Data Repository (NDR) has provided a building to host the Africa Energy Bank (AEB) Headquarters in Abuja, Nigeria.
“This gesture will fast-track the operationalisation of the bank, which will dovetail into job creation and Oil & Gas business financial support.”
The CCE emphasised on NUPRC’s commitment to ensuring transparent and efficient regulatory processes that fosters innovation and ensure global competitiveness.
To achieve this, Komolafe said NUPRC will focus on a five-point agenda, which includes the effective implementation of the 1M barrel production incremental initiatives.
He added, “Enhancing transparency of hydrocarbon measurement accuracy through the implementation of the metering and advance cargo regulations; digitalization of upstream regulatory activities to engender willful regulatory compliance for effectiveness and efficiency.
“Interrogating and achieving optimum unit cost per barrel for increased federation
revenue.
“Conduct licencing bid round by implementing the drill or drop provisions of the
PIA, 2021 to ensure that non-performing assets are revived and brought to production.”