Oando Backs NUPRC’s Plan to Grow Crude Oil Output by Additional 1m bpd

*Establishes crude output  war room

Emmanuel Addeh in Abuja

Oando Plc has pledged its commitment to the aspiration by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to raise crude oil production by an additional 1 million barrels per day.

The company joined industry peers at the Nigerian NUPRC’s third anniversary celebration in Abuja, which also served as the launch of the commission’s ‘Project 1 Million Barrels of Oil Per Day’ increment.

The company reiterated the need for industry stakeholder partnership and collaboration to tackle the sector’s challenges and ensure that Nigeria rebounds and exceeds its current oil production capacity.

Managing Director, Oando Energy Resources Nigeria Limited (OERNL), Dr. Ainojie ‘Alex’ Irune, joined major producers peers, Shell Petroleum Development Company of Nigeria Limited (SPDC), TotalEnergies, ExxonMobil, Chevron Nigeria and Nigerian Agip Exploration (NAE), on a panel at the event .

A statement by the company yesterday said Irune gave credit to the regulators, NUPRC and partner, the NNPC, for their critical steps taken to revitalise the Nigerian energy sector.

“For the first time in our nation’s history, we have witnessed a regulatory body actively promoting business transformation rather than simply enforcing regulations.

“The NUPRC has established ambitious goals for the industry, and it is incumbent upon industry players to implement the necessary business and operational changes to achieve these objectives.

“Furthermore, we have witnessed a revitalised NNPC that has implemented significant changes, particularly with regards to personnel and decision-making. These decisive actions are crucial for the company’s, and by extension, the sector’s, continued success. Without such measures, the undesired status quo would likely have persisted,” Irune remarked.

Irune said he believed that to maximise the ability to meet set target and efficiently evacuate what is produced, key stakeholders, particularly the government, have a responsibility to tackle the issues of security and incessant vandalism before any key conversations arise.

He mentioned that the pipelines are in their current state due to several factors, some of which which are insecurity and interruption issues, with vandalism being the most prevalent.

In light of this, he proposed that the only way to resolve the challenges and produce sustainable results was through the alignment of all the key stakeholders along the value delivery chain.

 “We need to prioritise process and production safety over quick wins and the continuous belief perspective of value first; otherwise, all our ambitions to produce millions of barrels will be set to fail from the start,”  Irune added.

Commission Chief Executive, NUPRC,  Gbenga Komolafe, while addressing the audience remarked on the commission’s achievement since its enactment by the Petroleum Industry Act (PIA) in 2021.

He said: First, on the development of regulations, we have successfully introduced critical regulations in collaboration with industry stakeholders that operationalise the Petroleum Industry Act and encourage regulatory clarity, predictability, and transparency.

“ So far, 25 priority regulations have been developed, and 17 have already been executed. This approach has optimised regulatory processes and has boosted investors’ confidence.

“On oil and gas reserve flows, working with industry stakeholders, we have implemented initiatives to grow oil and gas reserves through studies and development initiatives to the current level of 37.7 billion barrels of oil, representing 30 per cent of Africa’s oil and gas reserves, respectively.”

Komolafe charged stakeholders in the industry to collaborate with the government as it continues to make necessary changes in the industry to ensure that the sector remains competitive, productive and prosperous.