Mr. Tony Elumelu, Chairman, Heirs Holdings Group has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on its third anniversary in a speech with the theme: Transformation, Innovation & Excellence.
In a speech at the event in Abuja, Elumelu said: “Today’s theme, “Transformation, Innovation & Excellence,” resonates deeply with the challenges and opportunities facing Nigeria’s energy space.
I commend the transformative and bold initiative of NPRC: the Project 1 million barrel of oil (MMBOPD).”
We are faced with the threat of Declining Production and Investment
We must acknowledge the elephant in the room. Nigeria’s oil production has been on a downward trajectory, falling from peaks of over 2 million barrels per day to recent lows, below 1.5 million.
This decline translates to lost revenues, reduced global market share, and missed opportunities for national development.
The root causes are multifaceted: aging infrastructure, security challenges in the Niger Delta, stalled investments, regulatory uncertainties, and a global shift towards renewable energy that has compounded the investment challenge.
These factors, combined, threaten the very foundation of our economy, as we are heavily dependent on oil.
As a nation, we cannot permit this to continue, and squander our inheritance and betray our next generation.
The Solution: Project 1MMBOPD and Beyond
This is where Project 1MMBOPD is so critical, a crucial part of the solution to unlocking the next phase of our development.
By targeting to grow production by 1 million barrels of oil per day from current levels, we are setting a clear and challenging goal; one that I believe is achievable as I see all stakeholders are at the table and will commit to play their parts and bring the needed collaboration, innovation, and excellence to make this project a success, for the benefit of our country.
To be sustainable, this initiative should go beyond just increasing production; it should catalyse a comprehensive strategy to revitalise our entire upstream sector.
The project should encompass key elements:
Infrastructure Modernisation: Upgrading our aging facilities to improve efficiency and reduce downtime.
Security Enhancement: Implementing advanced technologies and community engagement strategies to secure our assets.
Regulatory Streamlining: NUPRC’s commitment to creating a more transparent and efficient regulatory environment.
Investment Attraction: Leveraging this improved landscape to attract both domestic and foreign investment.
Technology Adoption: Embracing cutting-edge technologies to optimise production and reduce environmental impact.
By addressing these areas comprehensively, we will not only aim to reach the 1MMBOPD target but also to create a sustainable framework for future growth.
Focus on Gas
As we embark on this ambitious project to boost our oil production, let us also keep our focus on the critical role of gas in our energy mix.
The path to 1MMBOPD must be constructed on strategies that maximise the value of our gas resources, reducing flaring and increasing utilisation for domestic and export markets.
This dual focus will help diversify our energy portfolio and mitigate the risks associated with over-reliance on oil.
We know the criticality of gas in improving access to electricity in Nigeria. Access to electricity is the single most important factor in our quest for industrialisation. You can now see that our oil and gas sector is pivotal to the development of our country.
NUPRC’s Achievements
In its three short years, NUPRC has already laid the groundwork for this solution.
Your efforts in promoting sustainable practices, such as the Nigerian Gas Flare Commercialisation Programme, exemplify the innovation required to balance environmental stewardship with economic growth.
These initiatives not only reduce our carbon footprint, but also create valuable opportunities for our workforce and communities.
Role of Independents – Heirs Energies’ Progress
At Heirs Energies, we are actively contributing to this solution.
In the first 100 days after we took over operational control of our OML-17 asset in 2021, we doubled our production from 28,000 to over 50,000 barrels per day.
We suffered a setback with unabated crude theft, which caused us to shut-in and work collaboratively with the NNPC Limited to better secure the pipeline system. From a low of 5% terminal receipts in December 2021, year-to-date in 2024, we have recorded an average terminal receipt of 85%; a remarkable improvement and a good example of what a purposeful collaboration between NNPCL and operators underpinned by rigorous execution can deliver.
With the improvement in the operating environment, we have restarted our investment and production growth journey, and have now successfully reversed the fall in production that we suffered in 2022 and 2023, as a consequence of the evacuation challenges. A few days ago, OML-17 attained over 51,000 barrels per day, and we continue our production growth journey.
Relatedly, we are also working to grow our gas production that feeds many power generation plants and gas-based industries.
These achievements indicate what is possible, where there is a strong industry collaboration, and in particular, when regulatory support meets private sector drive and innovation.
