Nigeria’s crude oil production hits 1.61mbpd

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that the nation’s average crude oil daily production rose to 1.61 barrels per day (mbpd) as of July 23, 2024.

The NUPRC also disclosed that with a proven reserve of 37.50 billion barrels and a production capacity of approximately 2.19 million mbpd, Nigeria continues to dominate as Africa’s largest producer of crude oil.

The Commission Chief Executive of the NUPRC, Engr. Gbenga Komolafe, made the disclosure at the House of Representatives Special Committee Two Day Public/Investigative Hearing on Oil Theft/Losses in Abuja.

The commission, in a statement made available to newsmen on Friday, July 26, 2024, noted that driven by the mandate to oversee the exploration, development, production, and lifting operations of crude oil and natural gas, it regulates both the technical and commercial aspects of operations in the nation’s upstream petroleum sector to ensure 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.

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On the statutory mandates and regulatory strategies of the NUPRC, Komolafe said 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.

According to the nation’s upstream chief regulator, the strategies of the commission aim to optimise production, enhance regulatory oversight, and ensure accurate measurement and accounting.

Highlighting the key initiatives of the NUPRC, Komolafe stated that the commission has prioritised 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 first Oil, among other initiatives,” he noted.

Speaking on crude oil theft and pipeline vandalism, the CCE 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. These interventions have significantly reduced theft, with zero incidents reported in July 2023,” he stated.

The Star