LAGOS, Nigeria (VOICE OF NAIJA)-According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s crude oil reserves increased from 36.96 billion barrels (bb) to 37.50bb within a year, as reported yesterday.
During the same period, the natural gas reserves also saw an increase from 208.83 Trillion Cubic Feet (TCF) to 209.26TCF, as reported by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The records were detailed in the January 2023 to January 2024 update provided yesterday in Abuja by the Chief Executive Officer (CEO) of NUPRC Gbenga Komolafe,
He credited the rise in reserves to the production from marginal fields in the country and various initiatives undertaken by the commission.
The NUPRC boss said: “The brown fields and marginal fields, some of them, have started producing and contributing to our national oil and gas reserves.”
He pointed out that the data illustrates the nation’s level of hydrocarbon capacity.
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Komolafe emphasized that the commission had crafted a template to guide Domestic Crude Oil Supply Obligation (DCSO) activities, aligning with Section 109(2) of the Petroleum Industry Act (PIA), 2021.
He remembered collaborating with stakeholders such as the Nigerian National Petroleum Company (NNPCL), Upstream Investment Management Services (NUIMS), representatives from Crude Oil/Condensate Producers, Crude Oil Refinery-Owners Association of Nigeria (CORAN), and Dangote Petroleum Refinery to develop a comprehensive template. This initiative aimed to garner support from all parties involved and ensure the smooth execution of the Domestic Crude Oil Supply Obligation (DCSO), guaranteeing a steady crude oil supply to domestic refineries.
Komolafe emphasized that this strategic initiative is in line with the current administration’s policy and echoes President Bola Ahmed Tinubu’s assertion that Nigeria is open for business.
He added that President Tinubu, as part of his administration’s fiscal policy, has removed barriers to investment in the oil and gas sector.
Komolafe emphasized that this development aligns with Nigeria’s commitment to strengthening domestic refining capacity and ensuring the sustainability of its oil industry.
He said: “The template provides a transparent framework aimed at fostering collaboration among stakeholders for a thriving energy sector.
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“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.”
When asked if the template addressed the currency of transaction for crude oil to domestic refineries, he explained that, according to the PIA, the parties involved refineries and crude oil producers are required to agree on the currency, whether in naira or dollars.
He clarified that the price of crude oil, being an international commodity, is set accordingly.
Komolafe further explained that legitimate crude oil shipments leaving Nigeria are not at risk of being stranded, as each official consignment has a designated destination.
He addressed inquiries about the shortage of crude for domestic refineries and the stranding of some crude oil-bearing vessels on the high seas.
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He highlighted that crude oil allocation depends on requests from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to the commission, as well as the actual capacity of producers.