Oando Plc has pledged its commitment to the aspiration by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to raise crude oil production by an additional 1 million barrels per day.
The company joined industry peers at the Nigerian NUPRC’s third anniversary celebration in Abuja, which also served as the launch of the commission’s ‘Project 1 Million Barrels of Oil Per Day’ increment.
On October 14, the Organisation of Petroleum Exporting Countries (OPEC) said Nigeria’s average daily crude oil production dropped to 1.32 million bpd in September 2024, which is below the country’s OPEC quota of 1.5 million bpd.
The NUPRC initiative is expected to increase the projected output to 2.5 million bpd in two years.
Irune said to maximise oil producers’ ability to meet their set target and efficiently evacuate what is produced, key stakeholders, particularly the government, “have a responsibility to tackle the issues of security and incessant vandalism before any key conversations arise”.
He said pipelines are in their current state due to several factors, the most common of which are security and interruption issues due to vandalism.
According to Irune, the alignment of all major players along the value chain is the only way to tackle the challenges and generate long-term results.
“We need to prioritise process and production safety over quick wins and the continuous belief perspective of value first; otherwise, all our ambitions to produce millions of barrels will be set to fail from the start,” Irune said.
He commended the NUPRC and NNPC for the critical steps taken to revitalise the Nigerian energy sector.
“For the first time in our nation’s history, we have witnessed a regulatory body actively promoting business transformation rather than simply enforcing regulations,” he said.
“The NUPRC has established ambitious goals for the industry, and it is incumbent upon industry players to implement the necessary business and operational changes to achieve these objectives.
“Furthermore, we have witnessed a revitalised NNPC that has implemented significant changes, particularly with regards to personnel and decision-making.”
The decisive actions, he said, are crucial for the company’s continued success, and by extension, the sector’s continued achievements.
“Without such measures, the undesired status quo would likely have persisted,” Irune said.
‘NUPRC HAS EXECUTED 17 REGULATIONS IN OIL AND GAS INDUSTRY’
On his part, Gbenga Komolafe, chief executive officer (CEO), NUPRC, highlighted the commission’s achievement since the enactment of the Petroleum Industry Act (PIA) in 2021.
“First, on the development of regulations, we have successfully introduced critical regulations in collaboration with industry stakeholders that operationalise the Petroleum Industry Act and encourage regulatory clarity, predictability, and transparency,” he said.
“So far, twenty-five priority regulations have been developed, and seventeen have already been executed. This approach has optimised regulatory processes and has boosted investors’ confidence.
“On oil and gas reserve flows, working with industry stakeholders, we have implemented initiatives to grow oil and gas reserves through studies and development initiatives to the current level of 37.7 billion barrels of oil and through 0.9.2 cities this year of gas, representing 30% and 33% of Africa’s oil and gas reserves, respectively.”
Komolafe charged the stakeholders to partner with the government as it continues to make necessary changes in the industry to ensure the sector remains competitive, productive, and prosperous.
