1 month ago
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Minister of State for Petroleum Resources, Heineken Lokpobiri.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and the Nigerian Upstream Petroleum Regulatory Commission have expressed differing views regarding the commission’s target of increasing oil production by an additional one million barrels per day within 12 to 24 months.
The initiative, which aims to enhance the country’s energy output and contribute to economic growth will increase the current oil production capacity from 1.6 million barrels per day to 2.6mbpd by 2026.
While the NUPRC Chief, Gbenga Komolafe, said the project would position the oil and gas sector for vibrancy and value optimisation, the petroleum minister objected, stating that the target was low.
Speaking at an event to celebrate the third anniversary of the commission’s establishment on Monday in Abuja, Komolafe announced the plan to explore one million barrels of oil in addition to the current stock supplied by various stakeholders.
He noted that the project represents a collaborative initiative within the industry, designed to develop solutions that will unlock additional oil production in both the short and medium term.
He also sought the support of all stakeholders.
He said, “The implementation of the plan called the project one million barrels increase of oil per pay initiative, which is to be launched today.
“The project is an industry collaborative initiative to create solutions to unlock incremental oil production in the short to medium term, with expanded opportunities for all industry stakeholder groups.
“We see value for all producers, service providers, rig owners, financiers, and crude oil off-takers, amongst others. Our actions here today will be pivotal to production sustainability, energy security, and economic resilience, all in the overall national interest.
“As we look intently to the future, I call on all of us, our partners, investors, and stakeholders to join hands with the government in this journey.”
However, Lokpobiri, in his speech, disputed the current target, stating that it was inadequate and should be increased to 2.5m barrels per day.
The minister said, “When I got the invitation from the NUPRC about the launching of this project one million barrels, I felt that they were not ambitious enough.
“My challenge to NUPRC is that the project of 1m barrels in the next one to two years is unacceptable. Nigerians cannot wait another two years for us to add another 1m barrels. That is too long.
“I want industry players to ask the government what we can do to improve production to 4m barrels. Not this 1m barrels that we want to launch today, we have to amend it.”
Nigeria has been struggling to achieve production of the 1.5mbpd quota set by the Organisation of Petroleum Exporting Countries.
Therefore, the latest target indicates that the country is on track to achieve an oil production level of 4mbpd and gas production of 10 billion cubic feet by 2030.
Meanwhile, President Bola Tinubu has tasked industry players to collaborate with the NUPRC in realising its 1mbpd initiative.
Tinibu represented by Secretary to the Government of the Federation, George Akume, charged relevant industry stakeholders to join NUPRC in realising set goals of incremental oil production targets within specific timelines.
He said the shared responsibility initiative would be a collaborative undertaking, involving government agencies, major producers, service providers, financiers, host communities and other stakeholders.
This, he said would expand government revenue, eradicate poverty, and increase Gross Domestic Product in a sterile, shared prosperity.
“These commitments will be critical in ensuring that we achieve an incremental production in the next 12 months. Growing not just production levels, but also increasing efficiency and competitiveness of our industries.
“This initiative is of national importance and it should support Nigeria’s economic recovery and growth,” the president said.
