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Tag: Nigerian Upstream Petroleum Regulatory Commission (NUPRC)

  • CSOs Praise Gbenga Komolafe’s Achievements as NUPRC Boss and Warn Detractors

    CSOs Praise Gbenga Komolafe’s Achievements as NUPRC Boss and Warn Detractors

    A coalition of Civil Society Organizations (CSOs) has lauded Engr. Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), for his transparency, efficiency, and significant contributions to Nigeria’s oil sector. The coalition, which includes groups like Rising-Up for a United Nigeria and Guardians of Democracy and Development Initiative, highlighted Komolafe’s alignment with President Bola Tinubu’s Renewed Hope Agenda during a press conference in Abuja on Monday.

    Amb. Solomon Adodo, leader of the coalition, praised Komolafe for enhancing oil regulatory activities and increasing strategic production output. He noted that Komolafe’s leadership has led to a significant boost in crude oil output and earnings, contributing to Nigeria’s economic recovery under Tinubu’s administration.

    The coalition commended Komolafe for receiving the prestigious Sun Public Service Award, among other recognitions, and for fostering transparency and attracting more upstream oil investors. They emphasized his role in reducing crude oil theft, reactivating inactive wells, and increasing Nigeria’s crude oil production from below one million barrels per day to above 1.6 million barrels per day.

    Key achievements under Komolafe’s tenure include:
    – Comprehensive audits to reduce crude oil theft and enhance transparency.
    – A study to reactivate inactive wells, potentially unlocking 700,000 barrels of oil per day.
    – Issuance of the first Petroleum Exploration License for a major geophysical survey in the Niger Delta.
    – Advancing the mini bid licensing round for deep offshore Petroleum Prospecting Licenses, increasing the country’s crude oil reserves.
    – Developing a Domestic Gas Delivery Obligation to boost domestic gas production and lower prices.
    – Transitioning the management of Fiscal Oil Prices to NUPRC, enhancing revenue optimization.
    – Re-engineering the Nigeria National Data Repository and aligning regulations with global energy transition goals.
    – Implementing the Nigerian Gas Flare Commercialisation Programme to monetize flared gas and reduce emissions.

    The coalition also noted the incorporation of 111 Host Communities Development Trusts to foster a conducive business environment and curb community unrest. Komolafe’s efforts have resulted in increased investor confidence and stability in Nigeria’s upstream oil sector.

    In conclusion, the CSOs warned detractors against undermining Komolafe’s progress, emphasizing the need for continued support and focus on maintaining Nigeria’s position as a global reference point in the upstream oil industry.

  • Nigeria’s Crude Oil Production Declines from 2.5 to 1.1 Million Barrels Per Day

    Nigeria’s Crude Oil Production Declines from 2.5 to 1.1 Million Barrels Per Day

    By  Milcah  Tanimu

    Recent data from Statista reveals a significant decline in Nigeria’s crude oil production over the past 23 years. At its peak, Nigeria produced 2.5 million barrels per day (mbpd), but by August 2023, this figure has dwindled to 1.1 mbpd.

    A closer look at the historical data unveils a nuanced perspective. In the year 2000, Nigeria’s crude oil production averaged 2.15 mbpd, followed by an increase to 2.26 mbpd in 2001. Subsequent years witnessed fluctuations, with production ranging from 2.08 mbpd in 2002 to a peak of 2.52 mbpd in 2005.

    However, this zenith was short-lived. From 2006 to 2016, a gradual decline set in, with production dropping to 1.89 mbpd in 2016. While there were minor recoveries in 2017 and 2018 (1.96 mbpd and 2 mbpd, respectively), the trend turned sharply downwards.

    In 2022, Nigeria’s crude oil production plummeted to 1.45 mbpd, with a particularly concerning low point in August 2022, when the country produced only 972,000 barrels per day due to crude oil theft activities.

    For 2023, data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicates production ranging from 1 mbpd in April 2023 to a peak of 1.26 mbpd in March 2023, considering oil production excluding condensates.

    This ongoing decline underscores the urgent need to address the factors contributing to this trend and devise strategies for a more sustainable and robust oil production landscape in Nigeria’s future.

    In comparison, Brazil’s ANP oil agency recently announced that the country produced a record-high 4.482 million barrels of oil equivalent per day, emphasizing the urgency for Nigeria to elevate its crude oil production.

    Several factors drive this imperative, including the need to meet the ambitious 2023 budget oil production benchmark of 1.69 million barrels per day, ensuring sufficient stock for existing modular refineries, and bolstering the country’s revenues to address multifaceted government challenges.

    Sources familiar with Nigeria’s oil industry dynamics highlight a critical shortfall in proactive efforts to boost oil production. They emphasize a historical complacency among the government and key stakeholders, content with past production rates but without laying the groundwork for necessary investments and infrastructure to increase production and combat theft within the industry.

    This void in foundational initiatives places the country at a pivotal juncture, demanding immediate, strategic interventions to revitalize the oil sector. The imperative lies in this critical juncture where concerted actions can pave the way for a financially fortified and self-sustained nation.

  • Nigeria’s Crude Oil Production Slumps to 1.3 Million BPD in July 2023 – Report

    Nigeria’s Crude Oil Production Slumps to 1.3 Million BPD in July 2023 – Report

    In July 2023, Nigeria witnessed a decline in its crude oil production, reaching a daily average of 1,294,162 barrels, as per data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    The month’s breakdown indicated that Nigeria generated 1,081,396 barrels of crude oil per day, in addition to 38,258 barrels of blended condensate and 174,509 barrels of unblended condensates. These figures collectively contributed to the total production of 1,294,162 barrels per day for the month. This marks the second instance in 2023 where Nigeria’s crude oil production has fallen below 1.4 million barrels per day, with the first being in April 2023 at 1,245,028 barrels. For the rest of the year, production figures fluctuated between 1.4 and 1.5 million barrels per day.

    In June 2023, Nigeria recorded a production of 1,480,078 barrels per day, encompassing condensates. However, the drop in crude oil production experienced in July can be attributed primarily to the shutdown of the Forcados terminal in early July. The discovery of a sheen at the facility prompted a suspension of operations.

    NUPRC data revealed that the production disruption at the Forcados terminal, a crucial component of Nigeria’s oil infrastructure, significantly contributed to the overall decline in crude output. For July 2023, the Forcados terminal produced 3,286,735 barrels, a sharp contrast to the robust 7,898,226 barrels recorded in June 2023.

    Notably, several other major terminals also reported reduced production levels. The data disclosed that the Bonny terminal saw a production of 2,606,500 barrels in July 2023, down from 3,214,900 barrels in June. Similarly, the Brass terminal produced 987,114 barrels, showing a decline from the 1,136,446 barrels produced in June 2023.

    The Odudu (Amenam blend) terminal recorded a production of 2,934,411 barrels in July 2023, indicating a decrease from the 3,109,894 barrels produced in June 2023.

  • NUPRC Calls for Innovative Solutions to Address Energy Transition Challenges

    NUPRC Calls for Innovative Solutions to Address Energy Transition Challenges

    By Daniel Edu

    Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has emphasized the necessity for oil sector operators to devise innovative strategies to counteract the impacts of energy transition. Speaking at the Energy Year Nigeria 2023 Book Launch and Awards Ceremony in Lagos, Komolafe stressed the importance of developing measures to mitigate the challenges posed by the transition to cleaner energy sources.

    He highlighted the potential to optimize the value chain of crude oil by enhancing domestic refining capabilities, thereby generating a positive domino effect on midstream derivatives. These derivatives encompass various industries such as petrochemicals, methanol, ammonia production, and liquefied petroleum gas (LPG), which can drive industrial growth and boost revenue for economic development.

    Komolafe indicated that Africa’s industrialization potential is hampered by its energy gap and limited midstream derivatives and feedstock for industrial advancement. He underscored that a weak level of industrialization corresponds to a fragile economy.

    Addressing the funding aspect, Komolafe noted the need for innovative funding approaches for fossil fuel development in the Nigerian upstream sector, as energy transition efforts may lead to decreased investment in fossil fuels. He suggested exploring alternative funding mechanisms like pre-export financing, project financing, oil-for-service agreements, and prioritizing gas development as a transitional fuel.

    He also emphasized the importance of increasing production while reducing unit costs by utilizing improved drilling techniques and enhancing oil recovery methods. Additionally, he highlighted the significance of adopting advanced technologies to transform the upstream sector, boost production, and deliver mutual benefits to both the government and investors.

    Komolafe’s remarks underscore the ongoing need for innovation and adaptation within the energy sector as countries navigate the transition towards more sustainable and cleaner energy sources.