IPPG backs NUPRC’s one million barrels drive, hails reforms in oil sector

The Independent Petroleum Producers Group (IPPG) has thrown its weight behind the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) Project One Million Barrels Incremental Initiative, reaffirming its commitment to supporting national efforts to increase daily crude oil output.

The initiative, spearheaded by the NUPRC, is aimed at scaling up Nigeria’s daily crude production to meet and exceed current Organisation of Petroleum Exporting Countries (OPEC) targets. During a strategic visit to the Commission’s headquarters in Abuja, IPPG representatives commended the Commission for its ongoing regulatory reforms and its instrumental role in facilitating recent asset divestments by international oil companies (IOCs).

The visit followed the NUPRC’s announcement that Nigeria achieved 97 per cent of its OPEC-allocated quota of 1.5 million barrels of oil per day (mbopd) for May 2025.

According to the Commission’s “Crude Oil and Condensate Production May 2025” report, Nigeria’s crude output stood at 1.45mbopd, while condensate production reached 204,493 barrels per day. Combined, total production for the month was 1.81mbopd.

In a statement issued by the Commission and circulated to journalists, the meeting was described as a key engagement aimed at deepening collaboration between the regulatory body and indigenous oil producers, while also offering IPPG the opportunity to express gratitude for the NUPRC’s pivotal role in overseeing the transition of upstream assets from IOCs to local operators.

IPPG Chairman Abdulrazaq Isa, who also heads Waltersmith Group, highlighted that the asset transfers, closely managed by the Commission, represent a major turning point in Nigeria’s energy sector. He said this shift has opened the door for indigenous firms to expand their operations and contribute more significantly to national output.

Isa noted that the group is fully aligned with the national drive to boost production and is committed to pushing forward on both crude oil and natural gas development.

In his remarks, the Commission Chief Executive (CCE), Engr. Gbenga Komolafe, reaffirmed the Commission’s determination to foster a business-friendly environment. He outlined several reforms introduced since the enactment of the Petroleum Industry Act (PIA), noting their positive impact on efficiency and investor confidence.

Among the reforms is the automation of key regulatory processes, such as licensing and permitting, which has helped eliminate bottlenecks and improve turnaround times across the industry.

Komolafe also spoke on the implementation of the “Drill or Drop” policy, which obliges operators to commence production within specified timelines or risk forfeiting their licences. The policy, he said, is aimed at ensuring optimum utilisation of resources, maximising revenue, and revitalising dormant assets.

The CCE reported a surge in rig activity, rising from 11 rigs before the PIA to 42 currently operational, which he attributed to renewed investor confidence and a more robust upstream environment.

He further underscored the Commission’s commitment to transparency, accountability, and anti-corruption initiatives, and urged industry stakeholders to maintain open lines of communication to help refine the regulatory framework and keep it responsive to sectoral developments.

The IPPG, in response, acknowledged the far-reaching impact of the Commission’s policies, noting a resurgence in both domestic and international confidence in Nigeria’s upstream sector.

Commenting on May’s production figures, the NUPRC stated, “Lowest and peak combined crude oil and condensate production in May were 1.61mbopd and 1.81mbopd respectively. The daily average production was 1.65mbopd, comprising 1.45mbopd in crude oil and 204,493 barrels per day in condensate.”

The data reflected a slight decline from April’s output of 1.48mbopd in crude and 141,546bopd in condensate, totalling 1.68mbopd, which had represented 99 per cent of Nigeria’s OPEC quota.