Nigeria’s current crude oil output of approximately 1.4 million barrels per day falls short of meeting the country’s energy requirements and socio-economic ambitions, according to the Independent Petroleum Producers Group (IPPG). Abdulrazaq Isa, IPPG Chairman, voiced these concerns during his goodwill message at the third anniversary celebration of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Isa highlighted the critical need to reposition Nigeria’s upstream sector, noting that IPPG is committed to advocating for measures to reverse declining production levels. He emphasised the urgency of implementing strategies to unlock production growth in the short to medium term and called for the removal of obstacles hindering Final Investment Decisions (FID) on international oil companies’ deepwater projects.
“Strengthening security across the Niger Delta to ensure a stable operating environment and addressing asset vandalism and regional instability are crucial for the sector,” Isa remarked. He also advocated for the enhancement of infrastructure to improve efficiency in product delivery, both domestically and for export.
In congratulating the NUPRC on its achievements, particularly in the successful implementation of the Petroleum Industry Act (PIA), Isa praised the Commission’s work. He referenced the recent launch of Project One Million Barrels of Oil Per Day (Project 1MBOPD), which aims to elevate national production to around 2.5 million barrels per day, thereby addressing domestic demand and boosting export capacity.
Isa underscored the importance of offering incentives and policy adjustments to support Nigeria’s goal of reaching 2.5 million barrels per day. He recommended the relaxation of certain restrictions to enable a return of key service providers and upgrades for local operators, in alignment with the Nigerian Content Development and Monitoring Board (NCDMB) guidelines.
Additional recommendations included: simplifying and expediting the acquisition of goods and services by introducing master service agreements (MSAs) for operational consistency, and revising FAT procedures to incorporate certified international agencies.
These measures, Isa noted, are essential for Nigeria’s upstream sector to fulfil its potential and meet both national and global energy demands.