The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said the 2025 budget is predicated on 2.062 million barrels crude oil production at 75 dollars per barrel.
The NUPRC said Nigeria’s current production was averaging 1.7 million barrels, leaving a deficit of about 350,000 barrels to be bridged.
The Commission Chief Executive, NUPRC, Mr Gbenga Komolafe, made this known on Thursday in Abuja at the inaugural Petroleum Industry Stakeholders’ Forum organised by the Ministry of Petroleum Resources.
Komolafe said in order to avert the budget deficit and revenue gap, the commission inaugurated the “Project One Million Barrel per Day Incremental Production Initiative” during its third year anniversary in 2024.
This initiative, he said, entailed that every player within the upstream value chain could operate in one-stop shop economic system as against operating in silos thereby failing to leverage optimum capability and economic of scale.
He said the Commission had developed a template to identify the “Needs “of every player within the value chain with a view to meeting the gaps arising from the needs of each player which could be met by another player.
“This is expected to create synergy, networking and leveraging on the capabilities of every player within the value chain.
“The Commission in 2024 set an agenda for the industry through the rolling out of Regulatory Action Plan (RAP) focused on regulatory predictability, future licencing rounds policy and implementation, among others.
“The Commercial Bid Conference for the 2024 Bid Round was conducted December 2024, where winning and reserve bidders emerged for each block on offer.
“The conference was conducted real-time online via technology adoption in the presence of representatives from the Ministry of Petroleum Resources, Ministry of Finance, Nigeria Extractive Industries Transparency Initiative (NEITI), and the General Public,” he said.
The bid round, he said, was in accordance with the provisions of Section 74 of the Petroleum Industry Act (PIA 2021) to ensure an open, transparent, and competitive bid process as provisioned in Section 73(1)(a) of the PIA.
He said the adoption of a real-time online Commercial Bid Conference which was the first of its kind in the nation’s over 70 years in exploration and production history was to entrench transparency and attract investor’s confidence.
He said in line with boosting Nigeria’s aspiration of becoming the energy hub of the continent, the NUPRC, through the National Data Repository (NDR) had provided a building to host the Africa Energy Bank (AEB) Headquarters in Abuja.
This gesture, he said, would fast-track the operationalisation of the Bank, which would dovetail into job creation and Oil and Gas business financial support.
He said the upstream sector experienced growth in the national oil and gas reserves by 1.45 per cent and 0.206 per cent respectively in 2024.
According to the NUPRC boss, the active rig count increased from an average of eight in 2021 to 38 currently, representing 79 per cent growth.
He said with effective collaboration with the security agencies, the theft and deferment had reduced drastically by more than 40 per cent in 2024.
Komolafe however, lauded the ministers of state petroleum resources oil and gas for their leadership in steering the industry growth at this period when the economy is focusing on the oil sector to bridge production gap to fund the 2025 budget.
The News Agency of Nigeria (NAN) reports that the forum offers the stakeholders an opportunity for broad assessment of the industry, identifying challenges and brainstorming, in view to proffering appropriate solutions for sector’s growth. (NAN)
