Nigeria’s hope of meeting its 2.06 million barrels per day crude oil production benchmark in the 2025 budget received a boost in July, with the country exceeding 1.8 million bpd peak output for the first time this year, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said yesterday.
The 2025 national budget, pegged at about N55 trillion, was built on an assumed oil production of about 2.06 million bpd (including condensate) and a benchmark crude price of $75 per barrel.
The government expects oil revenues to contribute roughly N19.6 trillion of revenue from the oil sector, an aspiration that has been hobbled by underproduction of hydrocarbons.
Speaking at the ongoing Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) in Lagos, the Chief Executive of the NUPRC, Gbenga Komolafe, noted that during the month of July, Nigeria’s average production hovered around 1.78 million bpd.
His speech was themed: “Building a Sustainable Energy Future: Leveraging Technology, Supply Chain, Human Resources and Policy”.
At the event, Komolafe stated that the NUPRC as the upstream industry regulator, has its responsibility beyond compliance, stressing that it is focusing on enabling a stable, efficient, and forward-looking upstream sector, one that balances the imperatives of energy security, environmental responsibility, and economic sustainability.
With technology central to enabling a dynamic and vibrant industry, Komolafe stated that Nigeria is witnessing a shift in exploration, development and production methods anchored on technological transformation.
At the commission, he noted the NUPRC continues to promote technology adaptation and sanctioning novel technologies in all areas of Exploration and Production (E&P), from traditional operations to innovative approaches for decarbonisation and emission reduction.
By the same token, the NUPRC, Komolafe explained, has embraced technology in its regulatory operations to enhance service delivery, improve turnaround time and rejig its business process.
These, he explained, are not just technical upgrades, but part of a broader effort to entrench transparency, promote accountability and reduce costs, all geared towards enabling industry growth and vitality.
He stated that a reliable and vibrant supply chain was critical for reducing lead times, lowering costs, and strengthening national capacity, with NUPRC having taken deliberate steps to create a regulatory environment that supports the growth of service companies, both international and indigenous.
According to him, the NUPRC’s approach to regulatory enablement is geared towards domestication of technology, promoting local manufacturing, and enhancing overall supply chain resilience.
“Beyond regulation, the commission is implementing core initiatives to drive positive industry actions and imperatives. To begin with, just last week, the commission assembled industry practitioners to deliberate on a workable strategy to foster cluster development in the shallow and deepwater.
“Through an industry-wide implementation vehicle, we will evolve policy frameworks and operational mechanisms to valorise stranded or marginally economic oil & gas resources through joint development strategies.
“In a similar vein, the commission is pursuing the Project 1 MMBOPD incremental initiative with modest gains recorded owing to the multi-stakeholder collaborative approach adopted. We are glad to report that we crossed the 1.8 million bpd mark on peak production last month, with average production hovering at 1.78 million bpd,” Komolafe stated.
Besides, Komolafe, at the event, noted that the NUPRC was working to ensure minimal production disruptions to crude oil production with the deployment of the Maximum Efficient Rate (MER) framework.
“As part of our commitment towards sustainable production, the commission is optimising the Maximum Efficient Rate (MER) framework, addressing produced water management, and aligning operational shutdowns and turnaround maintenance schedules to ensure minimal production disruptions,” the NUPRC chief stated.
Given the above and with the concerted efforts of all, Komolafe maintained that the presidential mandate on production increase was well within reach.
He emphasised that the commission continues to collaborate with institutions, professional bodies, and training providers to enhance skills development, promote technical excellence, and ensure that NUPRC’s workforce is prepared for the challenges of a low-carbon future.
Komolafe charged the SPE and other industry associations to accept the challenge of manpower and contribute to repositioning the industry through targeted capacity-building and engagement with young professionals, in consideration of the fast-evolving global energy landscape.
Since the enactment of the Petroleum Industry Act, 2021 (PIA), the commission, he said, has so far gazetted 21 key regulations, with others at various phases of development. These regulations, according to Komolafe, provide the clarity required to support investment, streamline administration, and align upstream operations with national and global priorities.
He listed some of the regulations that bear directly on the theme of this conference, to include: The Upstream Petroleum Measurement Regulations to promote transparency and accountability through technology deployment for accurate production measurement; the Gas Flaring, Venting and Methane Emissions Regulations, which directly support sustainability by tackling emissions and entrenching decarbonisation and the Host Community Development Regulations, which enhance social inclusion and local participation in the energy value chain.
Others included: The Domestic Gas Delivery Obligation Regulations, which improve energy access and strengthen the local supply chain; the Upstream Petroleum Safety Regulations, which ensure safe operations and workforce protection; and the Decommissioning and Abandonment Regulations set clear standards for responsible end-of-life asset management.
These instruments, according to Komolafe, demonstrate the commission’s commitment to creating a regulatory environment that fosters innovation, secures long-term value, and ensures the responsible stewardship of Nigeria’s upstream resources.
In another breadth, he stated that the NUPRC is implementing the Upstream Oil & Gas Decarbonisation & Sustainability Blueprint anchored on seven critical pillars to signal direction for industry sustainability.
