The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced a notable increase in daily crude oil production.
As of July 23rd, production levels have surged to 1.61 million barrels per day (mbpd), up from 1.25 mbpd in June.
This announcement was made by Gbenga Komolafe, the Commission Chief Executive of NUPRC, during a two-day public investigative hearing on oil theft and losses, held by the House of Representatives Special Committee.
Komolafe said Nigeria is Africa’s largest crude oil producer, with proven reserves of 37.50 billion barrels and a production capacity of approximately 2.19 mbpd.
Despite facing significant challenges, particularly at terminals in Bonny, Brass, and Forcados, the NUPRC has implemented several innovative measures to enhance transparency and accountability in the sector.
“To accurately account for losses and differentiate them from operational losses, the Commission has employed end-to-end production monitoring and a mass balance methodology,” Komolafe explained.
He highlighted the introduction of advanced measures such as the Advanced Cargo Declaration (ACD) Regulation, which ensures no crude oil is exported without proper accounting.
This includes assigning a unique identification number to each cargo, mandating reliable metering systems, and utilizing real-time cargo tracking and digital documentation.
The NUPRC’s mandate encompasses the oversight of exploration, development, production, and lifting operations of crude oil and natural gas.
This includes regulating both the technical and commercial aspects of operations in Nigeria’s upstream petroleum sector, ensuring optimal tax revenue generation, royalty collection, and cost benchmarking.
Key areas of focus for the Commission include maintaining business continuity and production sustainability, accurate measurement and timely payment of royalties, uninterrupted crude oil and natural gas supply to the domestic market, and upholding safety, health, and environmental standards.
Komolafe reaffirmed the Commission’s commitment to continued engagement with stakeholders to optimize Nigeria’s oil production and maintain its leadership position in Africa’s energy sector.
He also noted the prioritization of improving rig availability and reducing non-productive time through unlocking heavy crude oil reserves and supporting new Petroleum Prospecting License (PPL) awardees to achieve their first oil.
These strategic initiatives aim to optimize production, enhance regulatory oversight, and ensure accurate measurement and accounting, positioning Nigeria for continued growth and stability in the global oil market.
