Nigeria’s average daily crude oil production stood at 1.6 million barrels per day (mbpd) as of July 23, 2024, according to Gbenga Komolafe, chief executive officer (CEO) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Speaking on Friday during the House of Representatives special committee’s two-day public and investigative hearing on oil theft and losses, Komolafe highlighted the country’s consistent production performance.
On July 10, the Organisation of Petroleum Exporting Countries (OPEC) reported that Nigeria’s average daily crude oil production rose to 1.27 million barrels per day (bpd) in June, marking a 1.57 percent increase from the 1.25 million bpd recorded in May.
Due to the current production figure, OPEC confirmed Nigeria’s position as the leading oil producer in Africa, surpassing Angola, which produced 906,000 bpd in June.
Komolafe underscored Nigeria’s dominance as Africa’s largest crude oil producer, with proven reserves of 37.50 billion barrels and a production capacity of approximately 2.19 mbpd. “As of July 23, 2024, Nigeria’s average daily production stands at 1.61 mbpd,” he said.
Outlining the statutory mandates and regulatory strategies of the NUPRC, Komolafe noted that the Petroleum Industry Act 2021 grants the commission several responsibilities.
These include calibrating and certifying metering systems and equipment, publishing reports and statistics on upstream operations, overseeing regulations, issuing quality and quantity certificates for exports, and determining the fiscal prices for crude oil and condensate.
He emphasized the commission’s focus on optimizing production, improving regulatory oversight, and ensuring precise measurement and accounting.
The NUPRC has prioritized enhancing rig availability and minimizing non-productive time by unlocking heavy crude oil reserves through industry workshops. These initiatives aim to support new petroleum prospecting license awardees in achieving their first oil, among other efforts.
Acknowledging significant challenges such as crude oil theft and pipeline vandalism, particularly impacting the terminals at Bonny, Brass, and Forcados, Komolafe said the commission is employing 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. These include the advanced cargo declaration regulation to ensure proper accounting for all crude oil exports, the upstream metering regulation mandating reliable metering systems for all hydrocarbon production and exports, and real-time cargo tracking and digital documentation to improve visibility and efficiency in cargo operations.
Komolafe reiterated the commission’s commitment to ongoing engagement with stakeholders to optimize Nigeria’s oil production and sustain its leadership position in Africa’s energy sector.
