….NUPRC launch initiative to increase oil production to 2.7MBPD
The Nigerian government has announced that of 5 divestment applications received for consent, 4 companies successfully passed the regulatory test and secured ministerial consent.
Gbenga Komolafe, the Commission chief executive, of the Nigerian Upstream Petroleum Regulatory Commission disclosed this at the Commission’s launch of its project 1MMBOP initiative in Abuja on Monday.
According to him, the successful transactions include Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited, Equinor Nigeria Energy Company Limited to Project Odinmin Investments Limited, Nigerian Agip Oil Company Limited to Oando Petroleum and Natural Gas Company Limited and TotalEnergies EP Nigeria Limited to Telema Energies Nigeria Limited.
He explained that divestment, for the Nigerian government, is an acknowledged practice and within the right of investors in business decisions globally. “In recognition of this, as a nation, Nigeria is fully committed to the philosophy of free entry and free exit as further re-iterated by our dear President.
“The NUPRC in operationalising this principle, developed seven regulatory pillars to guide divestment in the upstream oil sector for sanity and protection of national interest.”
Komolafe further said that the 1MMBOP initiative is an industry collaborative initiative to cocreate solutions and evolve alternative funding mechanisms to unlock incremental oil production in the short-to-medium term with expanded opportunities for all industry stakeholder groups.
For Komolafe, the move to raise oil production by 1 million barrels per day is in line with the president’s mandate for the country to raise its oil output to support the country’s revenue target.
“We see value for all –Producers, Service Providers, Rig Owners, Financiers, Crude Oil off-takers, amongst others. The Project 1Million Barrel initiative is pivotal to production ramp-up, energy security, and economic all in the overall national interest,” he added.
In his remarks, Heineken Lokpobiri, minister of state for Petroleum Resources (oil) said the government is making efforts through policies to raise oil output, noting that based on records, it is producing 1.7 barrels per day, including condensates.
He urged the NUPRC to speed up efforts to boost production, stressing that, efforts should be geared to surpass the 1 million barrel target. For him. Nigeria, going forward should be categorised among the countries that are overproducing.
“I want to go to OPEC and argue why Nigeria is given 4mbpd, a country of 200 million. But we have not even done the four million.
“What are we doing now that is making us still underperform? What new investments do we need to make? First of all, we can go back to the 2.4 million barrels that Nigeria achieved during COVID-19. And I’ve always been told that the infrastructure is there.
“Do we have alternative ways of evacuation? As a government, we are doing everything humanly possible. By providing all the relevant incentives to the industry players, we can optimize production.
“When we came to the Minister of Resources, my objective was to see how we can ramp up production. And we are on that project. We are gradually, increasing production.
“So today, my challenge to NUPRC is that, look, your project 1 million barrels in the next one to two years is unacceptable. Nigeria cannot wait another two years for us to add another 1 million barrels. That is too long,” he said.
Also speaking, Ekperikpe Ekpo, the Minister of State Petroleum (Gas), assured the NUPRC of its unwavering support to boost gas production.
Ekpo said that Nigeria also needs to harness its gas resources as the country transitions to the use of cleaner fuel like Compressed Natural Gas to power vehicles.
Ekpo harped on the role that the country’s abundant gas resources will play in ensuring energy sufficiency and providing revenue for the government.
He said the PIA has remained the instrument driving all the reforms that the NUPRC and other industry agencies have initiated.
“The PIA has empowered the NUPRC to drive reforms and make policies in line with the energy transition goals and economic diversification,” the gas minister said.
In his address, President Bola Ahmed Tinubu noted that his administration has since inception focused on introducing significant policy reforms aimed at repositioning the oil and gas sector and setting it on a path of stability, growth and sustainability.
These reforms he said were beginning to bear fruits for the benefit of all Nigerians.
President Tinubu, who was represented by George Akume, the Secretary to the Government of the Federation called on relevant stakeholders to ensure a concerted effort to create vibrancy across the oil and gas sector to boost production to meet domestic and international needs and shore up our foreign exchange revenues.
“We have issued five executive orders to provide fiscal incentives for investment in Nigeria’s oil and gas sector. We are working with the legislative arm of government to fully implement some of these reforms, as statutory changes will be required in some areas. I congratulate all active oil and gas industry players for the modest gains in oil production, which rose to 1.6 million barrels per day.
“I am pleased that the NUPRC, working with industry stakeholders, has transformed that executive charge into a tangible initiative depicted as Project 1 million barrels of oil per day incremental production. This demonstrates the industry’s commitment to delivering on our renewed hope agenda.
“Project 1 million barrels of oil per day is a giant step forward for our oil and gas industry, designed to grow sustainably in direct response to my charge to increase production. By enhancing domestic energy security and supporting economic vibrancy, this initiative will ensure that Nigeria remains a crucial player in the global energy landscape amidst the worldwide energy transition.
“Increased oil production will lead to more job opportunities, increased revenue for the government, and a more stable energy supply for our dear citizens,” he said.
He explained that efforts were ongoing to diversify the Nigerian economy from over-dependence on the oil and gas industry as its lifeblood.
He said, “The oil and gas industry has long been the lifeblood of our national economy. Our administration is working tirelessly to change this and diversify our economy from over-reliance on the production of fossil fuels. However, we are also determining to maximize revenue potential from our nature-endowed hydrocarbon resources while focusing on decarbonization approaches to oil and gas production.”
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