Minister, NUPRC disagree on oil production goals

• Published On: 22 October 2024 at 07:42

The Minister of State for Petroleum Resources, (oil) Heineken Lokpobiri, and the Nigerian Upstream Petroleum Regulatory Commission have opposing views on the commission's goal of increasing oil output by one million barrels per day within 12 to 24 months.

According to The Punch, the program intends to increase Nigeria's oil production capacity from 1.6 million barrels per day to 2.6 million by 2026, boosting energy output and supporting economic growth.

The NUPRC Chief, Gbenga Komolafe, noted that the initiative would increase the vitality and value optimization of the oil and gas sector.

However, Heineken Lokpobiri, Minister of State for Petroleum Resources, disagreed, saying that the aim is too low.

Speaking at an event in Abuja to commemorate the commission's third anniversary, Gbenga Komolafe announced plans to explore an extra one million barrels of oil, complementing the present supply from various sources.

He stated that the project is a joint venture aimed at discovering methods to increase oil output in the near and medium term.

He also sought the support of all industry players.

He stated, "The implementation of the plan called the Project One Million Barrel Increase of Oil per Pay Initiative, which will be launched today.

"The project is an industry-led endeavor to develop ways to unleash incremental oil production in the short to medium term, with enhanced potential for all industry stakeholder groups.

"We see benefits for all producers, service providers, rig owners, financiers, and crude oil off-takers, among others. Our actions today will have a significant impact on production sustainability, energy security, and economic resilience, all of which are in the 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."

Meanwhile, in his address, Lokpobiri said that the present aim is insufficient and should be increased to 2.5 million barrels per day.

"When I received the NUPRC's invitation to launch the one million barrels initiative, I believed they were not bold enough.

"My challenge to NUPRC is that the project of 1 million barrels over the next one to two years is unacceptable. Nigerians cannot wait two years for us to add another million barrels. That's too long.

"I want industry participants to ask the government what we can do to increase production to 4 million barrels. We must adjust the 1 million barrels that we intend to launch today," the minister stated.

Meanwhile, President Bola Tinubu has asked industry participants to work with the NUPRC to meet its 1 million barrels per day target.

Representing the Secretary to the Government of the Federation, George Akume, he urged key stakeholders to collaborate with the NUPRC to reach incremental oil production targets within particular time frames.

Tinubu stressed that this shared responsibility effort would bring together government agencies, key manufacturers, service providers, financiers, host communities, and other stakeholders.

Nigeria has struggled to achieve the 1.5 million barrels per day quota established by the Organization of Petroleum Exporting Countries.

However, the most recent plan indicates that the country expects to produce 4 million barrels of oil per day and 10 billion cubic feet of gas by 2030.