Nigeria’s daily oil production saw a substantial increase in July, as reported by Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
By July 23, Nigeria’s average daily production had risen to 1.61 million barrels per day (mbpd), up from 1.25 mbpd reported earlier in the month.
During a two-day public/investigative hearing on oil theft and losses held by the House of Representatives Special Committee, the commission disclosed the latest production figures. “As of July 23, 2024, Nigeria’s average daily production stands at 1.61 mbpd,” Komolafe stated.
Komolafe reaffirmed Nigeria’s status as Africa’s top crude oil producer, with proven reserves of 37.50 billion barrels and a production capacity of approximately 2.19 million barrels per day.
He emphasized the NUPRC’s commitment to optimizing output, enhancing regulatory monitoring, and ensuring accurate measurement and accounting.
The NUPRC is also focused on improving rig availability and reducing non-productive time through industry workshops aimed at releasing heavy crude oil deposits.
Komolafe acknowledged the ongoing issues of oil theft and vandalism in Nigeria’s oil sector. Dataphyte estimates that in 2023, the country’s oil regulatory body spent N136 billion on security, repairs, and maintenance of damaged assets.
In response to these challenges, the commission has employed end-to-end production monitoring and a mass balance methodology to accurately account for losses and differentiate them from operational losses. These measures have significantly reduced theft, with zero incidents reported in July 2023.
Komolafe highlighted several innovative methods implemented by the NUPRC to improve transparency and accountability. These include:
–Advanced Cargo Declaration Regulation: Ensures no crude oil is exported without proper accounting and assigns a unique identification number to each cargo.
–Upstream Metering Regulation: Mandates reliable metering systems to account for all hydrocarbon production and exports.
–Real-Time Cargo Tracking and Digital Documentation: Enhances visibility and efficiency in cargo operations.
These initiatives demonstrate the NUPRC’s commitment to addressing the issues facing Nigeria’s oil sector and improving overall production and regulatory practices.
