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By Adewale Sanyaolu
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is targeting about 250,000 barrels per day of crude oil production from 22 petroleum prospecting licence (PPL) awardees within the next five years
The Commission’s Chief Executive, Mrs Oritsemeyiwa Eyesan, disclosed this at the on-boarding workshop for holders of the 2022, 2023 and 2024 Petroleum Prospecting Licences, in Lagos yesterday, with the theme “From Award to Production: Delivering Nigeria’s Upstream Petroleum Potential Under the Petroleum Industry Act, 2021.”
Eyesan said the Commission was focusing on ensuring that the licence holders commenced operations and fulfilled their minimum work programme commitments, stressing that the expected production volumes would follow as exploration activities progressed.
“What we should be concerned about now is not just the volumes; the volumes will come. I can assure you that we have the awardees who have taken these licences and made commitments to minimum work programmes to explore and progress exploration work,” she said.
According to her, the workshop was designed to put the awardees on the right track and provide the guidance needed to move their respective assets towards production.
“What we should be concerned about now is not just the volumes; the volumes will come. I can assure you that we have the awardees who have taken these licences and made commitments to minimum work programmes to explore and progress exploration work,” she said.
According to her, the workshop was designed to put the awardees on the right track and provide the guidance needed to move their respective assets towards production.
She expressed optimism that some of the operators would achieve first oil within three years, adding that the Commission expected the group to contribute at least 250,000 barrels per day to national production within five years.
Eyesan said the NUPRC would continue to support operators in meeting their commitments, while ensuring that the country’s upstream petroleum potential was translated into increased output.
Addressing concerns over the technical and financial capacity of some licence holders, particularly newly registered companies without established operating records, the NUPRC chief said the award process had subjected applicants to qualification requirements.
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“If you had taken time to look at the bidding guidelines, we were clear about the calibre of companies that could bid. They must have the right technical competencies and financial capabilities to work the assets,” she said.
“If you had taken time to look at the bidding guidelines, we were clear about the calibre of companies that could bid. They must have the right technical competencies and financial capabilities to work the assets,” she said.
She maintained that the Commission followed due process in assessing the qualifications of successful bidders and was satisfied that the awardees had demonstrated the technical and commercial competence required to develop their respective blocks.
However, she said the responsibility of the regulator extended beyond awarding licences to ensuring that operators were adequately resourced and remained on course to deliver their work programmes.
Eyesan said the NUPRC would continue to work with operators, oilfield service providers and other regulatory institutions to remove obstacles to investment and production growth.
She added that the Commission was committed to providing regulatory certainty through clear, consistent and business-friendly guidelines, noting that it would review existing procedures where bottlenecks were identified.
Eyesan said the NUPRC would continue to work with operators, oilfield service providers and other regulatory institutions to remove obstacles to investment and production growth.
She added that the Commission was committed to providing regulatory certainty through clear, consistent and business-friendly guidelines, noting that it would review existing procedures where bottlenecks were identified.
“As the foremost regulator, it is our responsibility to grow the Nigerian oil and gas industry. We will continue to support our operators and stakeholders at large,” she said.
Eyesan also reiterated the Commission’s ambition to raise Nigeria’s crude oil production capacity to three million barrels per day by 2030, saying the ongoing efforts to move newly awarded assets towards production were part of the strategy to achieve the target.
Eyesan also reiterated the Commission’s ambition to raise Nigeria’s crude oil production capacity to three million barrels per day by 2030, saying the ongoing efforts to move newly awarded assets towards production were part of the strategy to achieve the target.
