The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that Nigeria remains the dominant crude oil producer in Africa, with a daily output of 1.61 million barrels as of July 23, 2024. The nation boasts proven reserves of 37.50 billion barrels and a production capacity of approximately 2.19 million barrels per day.
Engr. Gbenga Komolafe, Chief Executive of the NUPRC, revealed these figures during the House of Representatives Special Committee's Public/Investigative Hearing on Oil Theft and Losses. He emphasized the Commission's role in regulating the exploration, development, production, and lifting operations of crude oil and natural gas, ensuring optimal tax revenue, royalty collection, and cost benchmarking.
The NUPRC is also focused on maintaining business continuity and production sustainability at low costs, ensuring accurate royalty payments, and upholding safety, health, and environmental standards. Engr. Komolafe noted that the Petroleum Industry Act 2021 grants the Commission statutory mandates, including calibration and certification of metering systems, regulatory oversight, and the publication of reports on upstream operations.
Addressing the challenges of crude oil theft and pipeline vandalism, Komolafe highlighted significant issues at terminals like Bonny, Brass, and Forcados. To combat these problems, the NUPRC has implemented end-to-end production monitoring and a mass balance methodology, which has significantly reduced theft incidents, with none reported in July 2023. The Commission also introduced innovative measures such as the Advanced Cargo Declaration Regulation, Upstream Metering Regulation, and real-time cargo tracking to enhance transparency and accountability in the sector.
