BY AKUDORO GLORIA
The Federal Government through Nigerian Upstream Petroleum Regulatory Commission (NUPRC), on Monday said that with concerted efforts of relevant stakeholders, national production increased from 1.2 million to 1.6 million barrels of oil per day.
The Commission Chief Executive, Engr. Gbenga Komolafe revealed this during his address at the launch of the project 1 million barrels of oil per day (1MMBOPD) initiative for sustainability and economic development.
According to the Commission Chief Executive, the implementation of the regulatory action plans for 2024 and the near term, issued on January 1st to signal direction for the upstream sector and foster operational excellence, led to the creation of the ‘1mmbopd initiative’ project.
“The PROJECT is an industry collaborative initiative to co-create 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. We see value for all Producers, Service Providers, Rig Owners, Financiers, Crude Oil off-takers, amongst others. The Project 1 Million Barrel initiative is pivotal to production ramp-up, energy security, and economic resilience, all in the overall national interest,” he stated.
The event also marked the three-year journey of NUPRC, which was held at the Transcorp Hilton in Abuja. It was attended by critical stakeholders from the oil and gas industry, including ministers, heads of government agencies, private sector practitioners, and the Secretary to the Government of the Federation, Sen. George Akume, who unveiled the event on behalf of President Bola Ahmed Tinubu.
Speaking on the theme of the occasion, “NUPRC@3: Transformation, Innovation, and Excellence”, Engr. Komolafe said the theme aptly captures the journey the agency have embarked upon and the values that define its commitment to the Nigerian oil and gas sector.
“Distinguished Ladies and Gentlemen, the enthusiasm that pervades the atmosphere in this hall is a testament to our collective drive in positioning the oil and gas sector for vibrancy and value optimization, in line with the charge of our beloved President, His Excellency, Bola Ahmed Tinubu, GCFR. Thank you for collaborating with us as we contribute our quota to national economic development, and sustainability through effective regulatory approaches for enhanced oil and gas production and federation revenue ramp up,” said Engr. Komolafe.
While highlighting some key achievements, the NUPRC Boss disclosed that in line with the provisions of the Petroleum Industry Act (PIA), a total of four (4) out of five (5) divestment applications for consent received passed regulatory test and secured ministerial consent, representing 80 per cent.
These four (4) 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. However, the divestment of Shell Petroleum Development Company Limited’s assets to Renaissance Africa Energy Company Limited could not scale regulatory test.
Engr. Komolafe also harped on the conclusion of the 2022 marginal bid round and issuance of petroleum prospecting license awards, emphasizing that a total of 50 Marginal fields have been converted to Petroleum Prospecting Licenses (PPLs), together with a minimum work programme that allows for early development and maturation of the assets.
He added; “the streamlined work program is projected to bring the fields into production within three (3) years and some have already made significant progress on field studies, well interventions, and project development. It is anticipated that about 60,000 bopd and 90MMscfd of incremental oil and gas production will be realized from these assets in the near term.
On ongoing licensing round to enhance investment attractiveness and improve global competitiveness, he said “the Licensing framework for the Bid Rounds was optimized following the PIA to vacate entry barriers and eliminate huge asset acquisition fees. We applaud the visionary leadership of His Excellency, Bola Ahmed Tinubu, for approving the licensing models and attractive entry fee regime based on comparative study and global benchmarks. With these innovative regulatory approaches, we have noted considerable investment appetite and are on course for a successful Bid Round.”