The Nigerian Upstream Petroleum Regulatory Commission has said Nigeria’s crude oil reserves rose from the 36.96 billion barrels to 37.50bb within a year.
This was revealed in the records contained in the January 2023 to January 2024 update given in Abuja on Monday by NUPRC Chief Executive Officer, Gbenga Komolafe.
He equally disclosed that the natural gas reserves increased from 208.83 Trillion Cubic Feet to 209.26TCF within the same period.
Komolafe explained that the increase in the reserves was due to production from some of the marginal fields in the country and the several initiatives of the commission.
“The brown fields and marginal fields, some of them, have started producing and contributing to our national oil and gas reserves,” NUPRC boss said.
He said the data shows the level of hydrocarbon capacity the nation is endowed with.
Speaking on the template for domestic crude oil supply obligation, Komolafe noted that that in compliance with the provisions of Section 109(2) of the Petroleum Industry Act 2021, the commission, in a landmark move, has developed a template guiding the activities for Domestic Crude Oil Supply Obligation.
He cited that in collaborative efforts with relevant stakeholders from Nigerian National Petroleum Company, Upstream Investment Management Services representatives of Crude Oil/Condensate Producers, Crude Oil Refinery-Owners Association of Nigeria and Dangote Petroleum Refinery, the commission initiated the template for the buy-in of all, in a bid to create smooth implementation of the DCSO and ensure consistent supply of crude oil to domestic refineries.
Komolafe stressed that the strategic initiative aligns with the policy of the current administration and the declaration of President Bola Ahmed Tinubu that Nigeria is ready for business.
He went further that President Tinubu, as part of his administration’s fiscal policy vacated barriers to investment in the oil and gas sector.
The NUPRC boss pointed out that the development aligns with Nigeria’s commitment to strengthening domestic refining capacity and ensuring the sustainability of its oil industry.
“The template provides a transparent framework aimed at fostering collaboration among stakeholders for a thriving energy sector.
“It is therefore my pleasure to unveil the template for DCSO compliance. With this development, the second half of 2024 is poised to witness increased synergy between local refineries and producing companies, setting the stage for a more robust and self-reliant petroleum landscape in Nigeria,” he said.
On whether the template took decision on the currency of transaction of crude oil to domestic refineries, he noted according to the PIA, the parties: refinery and crude oil producers are to agree on the currency of transaction whether naira or dollar.
He explained that the price of crude oil, being an international commodity, is determined as such.
Komolafe declared that no legitimate crude oil shipped outside Nigeria could be stranded because every official consignment has a designated destination.
He was responding to why there is shortage of crude for domestic refineries while some crude oil bearing vessels were stranded on the high seas.
Komolafe stated that crude oil allocation is based on the allocation request from the Nigerian Midstream and Downstream Petroleum Regulatory Authority to the commission and the actual capacity of producers.
