…Says oil, gas reserves in Nigeria represent 30-34 % of African reserves

By Matthew Denis

The Chief Executive Officer of the Nigerian Upstream Regulatory Commission (NUPRC), Engineer Gbenga Komolafe has stated that the actual national production currently averages 1.33 Million barrels of oil per day and 256 thousand barrels of condensate per day.

He made the disclosure while delivering his welcome address at the 8th Sub-Saharan Africa International Petroleum, Exhibition and Conference (SAIPEC) held in Lagos on Tuesday.

 Engr. Komolafe said the theme, ‘The Next Steps: Accelerating African Content,’ is in right direction for the conference noting that the global energy landscape is indeed currently in a state of rapid change in response to climate concerns.

“As a result, the oil and gas industry is experiencing crucial changes that will have significant bearing on the global energy future. In the recently concluded COP28, suggestions on pathways for phasing-out fossil fuels were vehemently challenged by OPEC+ as the cartel reiterated its call for just, inclusive, equitable and balanced energy transition. Moreso, His Excellency, President Bola Tinubu, GCFR, at the United Nations General Assembly (UNGA) in September 2023, underscored the need to align Africa’s transition pathway with the continent’s circumstances and overall economic pursuit

 The CEO stressed that the Agenda for Nigeria, and other resource rich developing economies, is that the evolving energy dynamics must be calibrated to ensure energy justice, equity, inclusivity, and sustainability.

“The new dynamics in the global energy arena necessitate that Nigeria, and other countries, long dependent on the exploitation of oil and gas as the mainstay of their economies, re-examine their strategy to secure a blossoming energy future while meeting the global climate goals.

“Hence, for Nigeria, the legal, governance, fiscal and regulatory frameworks provided in the Petroleum Industry Act, 2021 (PIA), amongst several objectives, aim to promote transparency, efficiency, and innovation for sustainable development of national hydrocarbon resources as well as renewable energy investment to meet the global environmental sustainability goals.

“The oil reserves and gas reserves in Nigeria respectively represent 30% and 34% of the African oil and gas reserves. Although the actual national production currently averages 1.33 Million barrels of oil per day and 256 thousand barrels of condensate per day, the national technical production potential currently stands at 2.26 Million bpd, and the current OPEC quota is 1.5 Million bopd.

“Thus, the Commission is taking strategic measures to arrest some challenges confronting us in order to boost production and meet the potential. These include: Measures to improve transparency in hydrocarbon measurement and accounting, Collaborative work programme administration with the E & P companies, and close monitoring to ensure that they meet their work programme obligations.”

According to him other factors are acceleration of field developments (FDPs) through timely approvals and ensuring speedy execution, Production optimisation by ensuring wells are tested periodically and produced at optimal rates, Identifying candidate wells for workover and interventions and Adoption of Enhanced Oil Recovery processes and technologies.

The NUPRC boss emphasised that aside from hydrocarbon resources, Nigeria is blessed with potentials for green and blue hydrogen, solar, wind, biomass and critical minerals for development of clean energy technologies as well as growing population predominated by young people.

With a coastline along the Gulf of Guinea, a market size of more than 200 million people projected to reach between 390 million and 440 million people in 2050, Nigeria represents hope for Africa.

“Interestingly, about 70 percent of the Nigerian population are under 30, and 42  percent are under the age of 15 [Source: National Population Commission] representing a huge economic asset. Indeed, Nigeria’s potentials are derived from its human, natural and material resources which must be mobilised to propel her on a path of economic growth and development and for her sustainable energy future.

He said that as a country, Nigeria is also on track to meet its environmental stewardship obligations. Analysis of the EU’s EDGAR database shows that Nigeria occupies a distant 165th position in the global ranking of top emitters, with a GHG emissions per capita at 1.88 tonnes CO2 equivalent per capita per year, representing just 0.13 percent of the global total.

“Despite the low emissions, we are not resting on our oars. The Nigerian Upstream Petroleum Regulatory Commission is effectively spearheading the national drive to achieve zero-flare target by 2030 and net zero carbon emissions by 2060 through several initiatives including a unique flare commercialisation programme – the NGFCP.”

He revealed that with over 125 billion barrels of oil and 620 trillion cubic feet of natural gas reserves as well as other natural resource potentials, Africa is richly endowed with resources, “but we must re-examine our strategies and respond through deliberate policies and programmes that suit our regional circumstances given the evolving global energy landscape. Accordingly, the time has come for African Petroleum Regulatory Agencies to come together to discuss our common challenges with a view to achieving our common objectives.”

“At the heart of this vision is the need to establish the African Petroleum Regulatory Forum (AFRIPERF) to work collaboratively in shaping the regulatory landscape of Africa as well as have a unified voice for stronger and more influential representation on the global stage.

“It is our hope that the framework for the AFRIPERF engagement will be set-up in the course of this Conference to set the stage for future periodic meetings that will culminate in numerous benefits including entrenching best practices and regulatory stewardship, facilitating knowledge sharing and technology transfer, attracting investment and enhancing global competitiveness.”