Nigeria’s Crude Oil Production Hit 1.6 mbpd In July

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced an increase in the daily Crude oil production in Nigeria, from 1.25 million barrels per day (mbpd) in June to 1.61 mbpd as of July 23rd.

This was disclosed by Gbenga Komolafe, the Commission Chief Executive of NUPRC who addressed the House of Representatives Special Committee Two Day Public/Investigative Hearing on Oil Theft/Losses.

According to the CCE, Nigeria remains as Africa’s largest producer of Crude Oil, boasting proven reserves of 37.50 billion barrels and a production capacity of approximately 2.19 million barrels per day (mbpd).

He said, “Nigeria is facing significant challenges, especially affecting terminals at Bonny, Brass, and Forcados. This has prompted the Commission to employ end-to-end production monitoring and a mass balance methodology to accurately account for losses and differentiate them from operational losses.

“The NUPRC has introduced several innovative measures to enhance transparency and accountability.”

Other innovations to ensure accountability according to Komolafe include the Advanced Cargo Declaration (ACD) Regulation that ensures no Crude Oil is exported without proper accounting and assigns a unique identification number (UIN) to each cargo, the Upstream Metering Regulation, which mandates reliable metering systems to account for all hydrocarbon production and exports, and real-time cargo tracking and digital documentation to improve visibility and efficiency in cargo operations.

He explained that with a mandate to oversee the exploration, development, production, and lifting operations of Crude Oil and Natural Gas, the NUPRC regulates both the technical and commercial aspects of operations in the nation’s Upstream Petroleum Sector, ensuring optimal tax revenue generation, royalty collection, and cost benchmarking.

“Other areas of major focus for the Commission include ensuring business continuity and production sustainability at low costs, accurate measurement and timely payment of royalties, uninterrupted Crude Oil and Natural Gas supply to the domestic market, and maintaining safety, health, and environmental standards.

“The Petroleum Industry Act 2021 grants the Commission several statutory mandates in the areas of calibration and certification of metering systems and equipment, publication of reports and statistics on Upstream operations, regulatory oversight and issuance of quality and quantity certificates for exports, and determination of fiscal prices for Crude Oil and Condensate,” he said.

According to Komolafe, the strategies of the Commission aim to optimize production, enhance regulatory oversight, and ensure accurate measurement and accounting.

He also noted that the Commission has prioritized improving rig availability and reducing non-productive time through unlocking heavy Crude Oil reserves via industry workshops. These initiatives also support new Petroleum Prospecting License (PPL) awardees to achieve their first Oil, among other initiatives.

He therefore reaffirmed NUPRC’s commitment to continued engagements with stakeholders to optimize Nigeria’s Oil production and maintain its leadership position in Africa’s energy sector.

Source: businessdayng