Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, affirms that Nigeria has the capability to increase its daily oil production to 2.2 million barrels, surpassing the current output of 1.5 million to 1.6 million.
Komolafe delivered this information at the 8th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) held on Tuesday in Lagos.
The conference, themed “The Next Steps: Accelerating African Content,” was facilitated by the Petroleum Technology Association of Nigeria (PETAN).
He highlighted that Nigeria holds 30% and 34% of the African oil and gas reserves, respectively, in the oil and gas sectors.
‘Although the actual national production currently averages 1.33 million barrels of oil per day and 256 thousand barrels of condensate per day.’
‘The national technical production potential currently stands at 2.26 million bpd, and the current OPEC quota is 1.5 million bpd.’
‘Thus, the Commission is taking strategic measures to arrest some challenges confronting us in order to boost production and meet the potential,’ he said.
As per the NUPRC boss, improving transparency in hydrocarbon measurement and accounting is among the measures implemented by the Commission.
The NUPRC chief stated that the Commission engages in a collaborative work program administration with E & P companies, diligently monitoring to ensure adherence to their work program obligations.
He pointed out that beyond hydrocarbon resources, Nigeria possesses potential for green and blue hydrogen, solar, wind, bio-mass, and critical minerals crucial for the development of clean energy technologies, coupled with a youthful, growing population.
‘With a coastline along the Gulf of Guinea, market size of more than 200 million people projected to reach between 390 million and 440 million people in 2050, Nigeria represents hope for Africa.’
‘Interestingly, about 70 per cent of the Nigerian population are under 30, and 42 per cent are under the age of 15, representing a huge economic asset.’
‘Indeed, Nigeria’s potentials are derived from its human, natural and material resources which must be mobilised to propel her on a path of economic growth and development and for her sustainable energy future,’ he added.
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Komolafe said that the global energy landscape was indeed currently in a state of rapid change in response to climate concerns.
He said that, as a result, the oil and gas industry is experiencing crucial changes that will have significant bearing on the global energy future.
He brought attention to the recently concluded COP28 and its proposals for the phased reduction of fossil fuels, a stance vehemently challenged by OPEC. The cartel reiterated its insistence on a just, inclusive, equitable, and balanced energy transition.
He highlighted that President Bola Tinubu, during the United Nations General Assembly (UNGA) in September 2023, emphasized the necessity to align Africa’s transition pathway with the continent’s unique circumstances and overarching economic objectives.
He stated that the agenda for Nigeria and other resource-rich developing economies is to calibrate evolving energy dynamics, ensuring energy justice, equity, inclusivity, and sustainability.
‘The new dynamics in the global energy arena necessitate that Nigeria, and other countries, long dependent on the exploitation of oil and gas as the mainstay of their economies, re-examine their strategy to secure a blossoming energy future while meeting the global climate goals.’
‘Hence, for Nigeria, the legal, governance, fiscal and regulatory frameworks provided in the Petroleum Industry Act, 2021 (PIA), amongst several objectives.’
‘Also, aim to promote transparency, efficiency, and innovation for sustainable development of national hydrocarbon resources as well as renewable energy investment to meet the global environmental sustainability goals,’ Komolafe explained.
Mr. Nicolas Odinuwe, Chairman of PETAN, emphasized that government and institutions should abstain from including funds from oil and gas industry stakeholders in their budgetary allocations.
Odinuwe highlighted that the funds are neither surplus nor idle, emphasizing that the essence of local content is community engagement and participation.