The Nigerian Upstream Petroleum Regulatory Commission has indeed been very deliberate in identifying and promoting new projects and new field developments in the oil rich region of the nation. In its deliberate actions, the Commission has been boosting the national oil production and has continued to work with relevant stakeholders in strategic areas, without prejudice, to achieve its mid and long-term goals.
Under the leadership of Engr. Gbenga Komolafe, the Commission has continued to implement some immediate (short term) oil gain strategies in the light of current realities and upward trends in international crude oil prices.
As a public institution, it has reiterated its commitment to discharging its mandate in the interest of the country. Recently, the Commission gave an account of stewardship, informing the public of its activities and the progress made so far, while delivering on its mandate.
In what can be described as holding the bull by the horn, amidst the rising figures of oil theft, NUPRC, has started implementing a scheme to track crude oil export and has secured approvals to properly meter oil wells.
The Commission has initiated a massive campaign dedicated to the identification of oil and gas wells producing below capacity, through, inventorization of shut-in wells and analysis of the inventory to map the reasons for shut-in and devise measures for quick reopening.
The Commission has also used well and reservoir surveillance activities in identifying poorly performing wells and workover candidates for quick intervention. In its wisdom, the Commission embraced and adopted new technologies and advanced recovery techniques for unlocking some identified stranded oil and gas resources.
Facts show that NNPC Ltd data indicate that Nigeria has lost over N623 billion to crude oil theft from January to April 2022.
A highly cerebral Gbenga Komolafe and his team have set up the Advanced Cargo Declaration Regime (ACDR) scheme that will curtail the export of stolen crude oil, as there will be a unique identifier and proper documentation for every export-bound oil cargo.
He said: “This implies that any cargo that does not have the unique identifier was not legitimately exported from the country.”
In fact, the commission obtained necessary approvals to ensure the installation of metering equipment – Control of Lease Automatic Custody Transfer (LACT) units in the upstream petroleum industry using Original Equipment Manufacturers (OEMs) to avert potential manipulation of figures that could result in short-changing the federation of oil and gas revenue.
Based on the 2021 annual reports of 61 operating firms, Nigeria’s crude oil reserve slightly grew by 0.37 per cent to 37.046 billion barrels, while gas reserve rose by 1% to 208.62 Trillion Cubic Feet (TCF) as of January 2022.
The commission, no doubt, is working to further increase the crude oil and gas reserves along with a target.
Due to the Commission’s commitment, its Chief Executive’s mandate formally declared the National oil and gas reserves position as of 1st January 2022 in line with the provisions of Sections 7 (i), (j), (k) and (r) of the Petroleum Industry Act (PIA) 2021 which stipulates that all operating exploration and production companies are to submit their annual report of reserves to the Commission.
The NUPRC’s leadership under Gbenga Komolafe has taken proactive initiatives since assumption of duty six (6) months ago towards the enhancement of crude oil and gas production, taking advantage of current market realities such as the upsurge of crude oil prices to $106.25 per barrel and disruptions in the supply of gas due to the war in Ukraine.
A total of sixty-one (61) operating companies submitted their 2021 annual report on reserves in line with the provisions of the PIA, 2021. Analysis of the report indicates that the Nation’s oil and condensate reserves status as at 1st January 2022 was 37.046 Billion barrels, representing a slight increase of 0.37% compared to 36.910 Billion barrels as at 1st January 2021. On the other hand, the National Gas reserves status as of 1st January 2022 was 208.62 (trillion cubic feet) TCF, representing an increase of 1.01% compared to 206.53 TCF as at 1st January 2021.
According to its reports, the Commission recognizes that the formulation of all-inclusive strategies to increase crude oil and gas reserves (from 37 billion barrels and 208.62 TCF) requires thorough consideration of all factors militating against efficient and effective exploration and production operations, and identification of low hanging fruits or opportunities.
“We have therefore become more deliberate and swift in implementing strategic actions and initiatives aimed at increasing our crude oil and gas reserves and production”, Komolafe said.
Speaking in Abuja recently on the approval to meter oil wells, Komolafe said: “The commission obtained necessary approvals to ensure the installation of metering equipment – Control of Lease Automatic Custody Transfer (LACT) units in the upstream petroleum industry using Original Equipment Manufacturers (OEMs) to avert potential manipulation of figures that could result in short-changing the federation of oil and gas revenue.”
He also said that based on the 2021 annual reports of 61 operating firms, Nigeria’s crude oil reserve slightly grew by 0.37 per cent to 37.046 billion barrels, while gas reserve rose by 1% to 208.62 Trillion Cubic Feet (TCF) as of January 2022.
He said: “Analysis of the report indicates that the nation’s oil and condensate reserves status as at 1st January 2022 was 37.046 billion barrels representing a slight increase of 0.37% compared to 36.910 billion barrels as at 1st January 2021.
Olamide Adeniji is a member of of the editorial team of TheScript Newspaper