- Nigeria won’t fix crude oil price
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday said it has identified the oil wells to activate to achieve the 2.5million barrels per day (mb/d) target in 2025.
The Commission also said it would not resort to price fixing for crude oil.
The Commission Chief Executive, Gbenga Komolafe insisted on the commitment to comply with international best practices to allow the willing -seller, willing -buyer option.
Speaking in a panel session at the Heirs Energies Leadership Forum in Abuja, the NUPRC Chief Executive Officer, Gbenga Komolafe, an engineer, said funding has been identified as one of the factors to be put in place to hit the target.
He said presently Nigeria is producing 1.75mbl. “So, for now, we are operating at about 1.75 million barrels,” said the NUPRC boss.
Komolafe further said: “Going forward, the Commission has a line of sight on how to get to our target production of 2.5 million barrels per day. And in doing that, we have identified the key initiatives to actually achieve that target.
“We have identified the candidate wells that needs to be reactivated, that needs to be re-entered. And of course, we recognise that funding is key as part of the factors that needs to be put in place.”
According to him, 38 oil well have been opened with the high hope of opening 50 wells between March and end of 2025.
He said: “Part of what we’ve done, equally, is to facilitate the situation we are in.The funders have been working. We have set up a platform there.
All the key actors, the funders, the rig owners, all of them, interact with the larger initiatives.
“As of now, we have reached our target of 38 wells. And I want to say that, from the way we are driving the project, we are believing that between now and the end of March, we should be achieving about 50 wells.
Between now and the end of March, that is our intention.”
He said part of the measures are the regulatory reforms, is driving the industry effectively by ensuring digitization of the Commission licensing and approval processes.
He said the digitization of the process will culminate in the reduction of delays and enhancing reduction in the cost of operations.
*That is speaking of licensing and approval processes itself translate, of course, automatically to efficiency in operations by reducing delays, reducing delays will reduce cost of operations that is overhead. So we are doing that and getting positive feedback from the industry,” he said.
He said although the commission is relying on its relationship with the host community to boost production, it is also targeting increase of production from the oil locked offshore areas.
Komolafe said the NUPRC is coming up with initiatives to encourage coastal infrastructure to boost crude oil production.
He said: “As part of our processes, rather than just relying on people in the community, as part of the issue, the Commission is putting in place to ensure that the industry achieves the targeted product.
“And apart from that, the industry will need to witness that we are concerned that a lot of our capacity to increase our production is locked in offshore areas.
“And for that, we are coming up with an initiative whereby the Commission will encourage coastal development in a manner to address the infrastructural challenges.
“So we are going to come up with an initiative in which development can be done in coasts that will leverage the economies of landscape; so all these activities that the Commission is backing up at least to ensure that we meet our targeted product.”
Also speaking at the event, the Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri recalled that Nigeria produced 1.8mb/d in January 2025.
He said the Federal Government is deploying technology to reduce the corruption that had drawn the sector backward.
He was optimistic that investment would certainly come to the industry.
He insisted that the Federal government target is a minimum of 2.5mb/d in 2025.
According to Lokpobiri, what the country needs is massive investment in the sector because the government.
The statement said Komolafe expressed commitment to the willing-seller, willing-buyer option which aligns with international best practices and affirmed that government would support the upstream sector’s optimal functioning without resorting to price-fixing.”
He assured that the Commission was at all times willing to positively address operational issues brought up by industry stakeholders so long as they would aid the growth of the sector and are in line with national interest.
Energy Security – NUPRC, oil sector stakeholders meet to fine-tune operational issues.
The statement was on the meeting NUPRC, along with major stakeholders in the country’s oil and gas sector held in Abuja on Wednesday to discuss and fine-tune issues related to domestic crude supply obligations between producers and refiners.
According to the statement, the meeting aimed to enhance Nigeria’s energy security.
The gathering, which has become routine, presented a platform for the management of NUPRC, members of the Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG) to collaborate on ensuring that the upstream sector operates effectively within established laws while also considering the commercial interests of all stakeholders.
At the meeting, the OPTS and IPPG sought clarifications on certain operational challenges regarding pre-allocation of crude oil to domestic refiners, pre-existing contracts amid domestic crude supply obligations and pricing issues.
Komolafe reassured stakeholders that while the Commission remains committed to regulating the industry as mandated by law, it is also focused on fostering growth within the sector, avoiding arbitrary actions that could dissuade operators or hinder investments.
In January, the Commission outlined a five-point agenda that would aid increased oil production in 2025.
This includes effectively implementing initiatives to boost production by one million barrels, enhancing the transparency and accuracy of hydrocarbon measurement through metering and cargo regulations, digitalising upstream regulatory activities for better compliance, optimising unit costs per barrel to increase revenue and conducting licensing bid rounds to revitalise non-performing assets in line with the provisions of the Petroleum Industry Act (PIA) 2021.
The CCE also revealed that the Commission has developed a template to identify the needs of every participant within the value chain.
This template aims to address gaps by leveraging the capabilities of different players, thus fostering collaboration, networking and operational optimisation. Wednesday’s meeting was in line with the initiative, to identify and address the needs of stakeholders as they arise in the course of operation.
To ensure consistent supply of crude oil to domestic refiners, the Commission early this month announced that significant regulatory actions to enforce compliance with the Domestic Crude Supply Obligation (DCSO) have been put in place, including the development and signing of the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023 along with the implementation of a DCSO framework and procedure guide.
The Commission had emphasised that it would strictly enforce policies regarding implementation and defaults by oil companies and would not hesitate to deny export permits for crude oil intended for domestic refining if companies fail to meet their obligations.
During Wednesday’s meeting, Komolafe clarified that the reference to export permit denial was not a threat to legitimate industry players, but specifically directed at non-compliant operators who may seek shortcuts, and in breach of the law.
He emphasised that the government is committed to protecting the interests of investors but will not compromise on issues that could jeopardise energy security or undermine national interests.
The CCE reiterated the government’s stance on not interfering with product pricing, as long as prices remain reasonable and fair.
