Government pledges to boost oil, gas production
11 October 2023 |
2:52 am
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) is optimistic that oil and gas production in Nigeria will experience a significant increase in the coming months.
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) is optimistic that oil and gas production in Nigeria will experience a significant increase in the coming months.
The commission also disclosed plans to reactivate shut-in wells as part of its initiatives to enhance oil and gas production in the country. The Chief Executive Officer (CEO) of NUPRC, Gbenga Komolafe, revealed this information at the NAEC Yearly International Strategic Conference 2023, which was organised by the Association of Energy Correspondents of Nigeria (NAEC) in Lagos.
The theme of the conference was ‘‘Nigeria’s Energy Transition: Enhancing Investment Opportunities and Addressing Challenges in the Oil and Gas Sector.’’
Komolafe, who was represented by the Head of the National Oil and Gas Excellence Centre (NOGEC) Department at NUPRC, Abel Nsa, stated that they are optimistic about witnessing a noticeable increase in the national oil and gas production volumes over the next few months.
He also mentioned that the ongoing mini bid round for seven deep offshore Petroleum Prospecting Licences (PPLs) is expected to boost the nation’s reserves and bring about anticipated benefits to Nigeria and other stakeholders.
In terms of reducing unit costs per barrel and increasing revenue, he explained that the Commission is committed to ensuring a significant reduction in the cost of doing business in the upstream petroleum industry.
“NUPRC has also begun a review of all Crude Handling Agreements (CHA) with a view to promoting transparency and competitiveness, thereby reducing the cost of production while increasing government revenue from the sector,” he said.
The commission reiterated its plans to introduce advanced cargo declaration to tackle oil theft and reactivate dormant oil wells to boost production.
He stated that this initiative aims to ensure that crude oil and gas cargoes exported from Nigeria have a unique identifier that confirms all documentation regarding the exported consignment.
Komolafe emphasised that NUPRC had deployed key resources to the Special Investigative Unit of the Commission to prevent any cases of sharp practices by operators in the sector.
“Quick-win strategies such as our aggressive drive to reactivate shut-in and declining wells will boost production prior to the onset of more long-term initiatives like operations from the new Marginal Field awardees.
“Moreover, the Commission is working alongside security operatives to bring an end to the menace of crude oil theft, which has over the years contributed to a substantial loss of production,” he said.
The CEO added that the agency had begun the implementation of the Drill or Drop Provision with a comprehensive review of assets that had been undeveloped by operators.
“Following an in-depth comparative analysis between the Unit Operating Cost (UOC) in Nigeria and those obtainable in other countries, we have commenced the development of cost studies and benchmarks to ensure an improvement in the cost efficiency of our upstream petroleum operations, in accordance with Section 8 of the Petroleum Industry Act 2021,” he stated. He noted that in the previous year, the Commission outperformed its revenue collection target by 18.3 per cent.
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