The Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe on Thursday announced a five-point agenda to ramp up oil production in 2025, at a forum where he also emphasised the importance of unity and collaboration among stakeholders to navigate the dynamic global energy landscape effectively.
Engr. Komolafe was speaking at the Petroleum Industry Stakeholders’ Forum which was held at the Petroleum Technology Development Fund (PTDF) Towers in Abjua. The forum aimed at fostering collaboration among stakeholders in the oil and gas sector amidst ongoing economic challenges.
“Our convocation here today, as key players in the industry, is instructive and appropriate allowing us to collectively carry out a broad assessment of the industry’s wellbeing, identifying challenges that might be negatively impacting it, and brainstorming with the view to proffering appropriate solutions for the growth of the industry”, he said.
Highlighting recent achievements, he noted a 1.45% growth in national oil and gas reserves and a 26% increase in oil production from April 2023 to November 2024. The active rig count surged from an average of eight rigs in 2021 to 38, showcasing a 79% growth in operational capacity. Additionally, effective collaboration with security agencies led to a 40% reduction in oil theft and deferments.
Engr. Komolafe referenced the recent surge in energy stocks following Donald Trump’s anticipated pro-oil policies, indicating a renewed global focus on fossil fuels that could positively influence Nigeria’s upstream sector. He emphasised that the forum is timely, as it seeks to align efforts towards achieving government aspirations, particularly the target of 2.062 million barrels per day at $75 per barrel for the 2025 budget.
To address the current production gap of 350,000 barrels, NUPRC has launched the 1 Million Barrel Per Day Incremental Production Initiative. This initiative entails that every player within the upstream value chain operates in a one-stop shop economic system as against operating in silos thereby failing to leverage optimum capability and economies of scale.
The CCE disclosed that Commission has developed a template to the industry to identify the “Needs” of every player within the value chain to meet the gaps arising from the needs of each player which can be met by another player. This is expected to create synergy, networking and leveraging the capabilities of every player within the value chain. It aims to create a collaborative environment within the upstream value chain, facilitating synergy and optimising operational capabilities.
Looking ahead, the he NUPRC has set a comprehensive agenda for 2025 focused on five key areas:
1. effective implementation of the 1M barrel production incremental initiatives;
2. enhancing the transparency of hydrocarbon measurement accuracy through the implementation of the metering and advance cargo regulations;
3. digitalisation of upstream regulatory activities to engender willful regulatory compliance for effectiveness and efficiency;
4. interrogating and achieving optimum unit cost per barrel for increased federation revenue; and,
5. conducting licencing bid rounds by implementing the drill or drop provisions of the PIA, 2021 to ensure that non-performing assets are revived and brought to production.
Engr. Komolafe reaffirmed NUPRC’s commitment to transparency and accountability, particularly through initiatives like the Host Community Development Trust (HCDT) and adopting new technologies for regulatory processes.
The forum also served as a platform for announcing the successful completion of the Commercial Bid Conference for the 2024 Bid Round, conducted online, ensuring transparency and competitiveness in line with international best practices. The CCE added that the adoption of a real-time online Commercial Bid Conference, which is the first of its kind in the nation’s over 70 years of exploration and production history, is to entrench transparency and attract investor’s confidence.
As part of efforts to boost Nigeria’s aspiration of becoming the energy hub of the continent. He announced that 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, he said, will fast-track the operationalisation of the Bank, which will dovetail into job creation and oil and gas business financial support.
In closing, Engr. Komolafe emphasised the importance of unity and collaboration among stakeholders to navigate the dynamic global energy landscape effectively. He expressed optimism that the forum would strengthen partnerships and drive sustainable growth within Nigeria’s upstream petroleum sector.
The CCE also appreciated the Ministers of State for Petroleum – Oil and Gas – for their leadership in steering industry growth during this critical period. He acknowledged their efforts in convening the stakeholders’ meeting to address the pressing need for increased oil production to support Nigeria’s 2025 budget.
