Abuja: The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that the 2025 budget is based on producing 2.062 million barrels of crude oil per day, priced at 75 dollars per barrel. Currently, Nigeria's production averages 1.7 million barrels, necessitating an increase of approximately 350,000 barrels to meet the budget target.
According to News Agency of Nigeria, Mr. Gbenga Komolafe, Commission Chief Executive of NUPRC, made this disclosure during the inaugural Petroleum Industry Stakeholders' Forum held by the Ministry of Petroleum Resources. To address the potential budget deficit and revenue shortfall, the commission launched the 'Project One Million Barrel per Day Incremental Production Initiative' during its third-year anniversary in 2024.
This initiative aims to foster collaboration within the upstream value chain by encouraging entities to operate in a unified economic system rather than in isolation. A template has been developed by the Commission to identify and address the needs of each player in the value chain, enhancing synergy and networking capabilities.
In 2024, the Commission implemented a Regulatory Action Plan (RAP) focusing on regulatory stability, future licensing policies, and implementation strategies. The Commercial Bid Conference for the 2024 Bid Round took place in December 2024, utilizing real-time online technology to ensure transparency and competitiveness, in accordance with the Petroleum Industry Act (PIA 2021).
The innovative online bid conference aimed to enhance transparency and build investor confidence in Nigeria's exploration and production sector. Additionally, the NUPRC is supporting Nigeria's goal to become an energy hub by establishing the Africa Energy Bank (AEB) Headquarters in Abuja, which is expected to stimulate job creation and provide financial support for oil and gas businesses.
In 2024, the upstream sector saw growth in national oil and gas reserves by 1.45 percent and 0.206 percent, respectively. The active rig count also increased from an average of eight in 2021 to 38, marking a 79 percent growth. Collaboration with security agencies led to a significant reduction in theft and deferment by over 40 percent.
Komolafe praised the leadership of the ministers of state for petroleum resources, highlighting their role in steering industry growth to bridge the production gap necessary for funding the 2025 budget. The News Agency of Nigeria noted that the forum provided stakeholders an opportunity to evaluate the industry's challenges and brainstorm solutions for sustainable development.