FG reduces oil theft to 5,000 barrels per day
The Nigerian Upstream Petroleum Regulatory Commission has revealed that the volume of stolen crude oil in the country has reduced to 5,000 barrels per day, enabling oil production to rise to 1.75 million bpd as of January 2025.
The Commission Chief Executive, Gbenga Komolafe, disclosed this as part of reforms and achievements in Nigeria’s oil and gas sector under the current administration at the Renewed Hope Global Town Hall Conference held in Abuja.
A press statement by the Head of Public Affairs and Corporate Communication, Olaide Shonola, on Sunday, said this was achieved through kinetic and non-kinetic interventions.
Komolafe said that owing to the intervention, crude oil production that dipped to 1.1 million bopd in 2022 has now soared to 1.7bopd.
He projected that oil production will increase by one million bpd by the end of 2026.
The statement read, “Oil theft that led to a drastic drop in production to 1.1 million BOPD in 2022. He, however, noted that through kinetic and non-kinetic interventions, oil theft has significantly reduced to 5,000 BOPD, leading to a steady production increase to 1.7 million BOPD.”
He further outlined the government’s goal to boost production under the Project 1 MMBOPD initiative, which will rely on collaboration among operators, service providers, financiers, and host communities.
Komolafe also reported that gas production has increased to 7 billion standard cubic feet per day, reflecting a positive shift in the upstream sector.
He emphasized that since the enactment of the Petroleum Industry Act in 2021, the Commission has initiated several reforms to enhance regulatory effectiveness and attract investments.
“In May 2023, the Commission unveiled its 10-year Regulatory and Corporate Strategic Plan (2023–2033), followed by a Regulatory Action Plan for 2024, detailing key industry reforms,” he noted.
These reforms aim to increase oil and gas reserves and production, Enhance hydrocarbon accounting transparency, Achieve cost efficiency and decarbonization, Ensure host community stability and Reduce the carbon footprint of upstream operations.
Speaking on Nigeria’s oil and gas potential and global positioning, he noted that Africa accounts for five of the world’s top oil-producing countries, and Nigeria stands as the continent’s second-largest oil reserve holder and the largest gas reserve holder, with oil reserves estimated at 37.5 billion barrels, while gas reserves stand at 209 trillion cubic feet.
He added that oil production in Nigeria now averages 1.75 million barrels per day, with a gas production rate of 7 billion standard cubic feet per day.
On the 2024 Licensing Round and Investment Drive, Engr. Komolafe highlighted that NUPRC launched its 2024 Licensing Round, offering 24 oil and gas assets to investors.
To attract global participation, the commission held roadshows in Houston, Miami, London, and Paris, showcasing Nigeria’s energy potential.
Shedding light on the Nigeria Gas Flare Commercialisation Programme, the CCE assured that the project is at the forefront of the country’s energy transition strategy and aims to eliminate routine gas flaring, reduce methane emissions, and encourage carbon capture technologies.
Additionally, the Carbon Credits Earning Framework seeks to monetise decarbonisation efforts while promoting sustainable energy practices.
Giving a brief on revenue growth and financial performance, coupled with industry challenges, he mentioned that NUPRC has consistently exceeded revenue targets. In 2024, the commission outperformed its budgeted revenue collection by 84 per cent, marking a strong financial performance for Nigeria’s upstream sector.
To ensure fiscal transparency, NUPRC has implemented regulations on hydrocarbon metering, fiscal oil price determination, and cargo declaration systems to curb revenue leakages and crude oil theft.
On Host Community Engagement and Regulatory Transparency, the commission has incorporated 137 Host Community Development Trusts to foster local participation and stability in oil-producing regions.
Furthermore, the Alternative Dispute Resolution Centre has been established to resolve conflicts efficiently, reducing disruptions to oil and gas operations.
In light of all these developments, Komolafe emphasised that Nigeria is more ready for business than ever, citing the government’s commitment to regulatory certainty, investment-friendly policies, and global competitiveness.
With a stable political environment, a growing gas economy, and a clear roadmap for energy transition, Nigeria positions itself as a prime destination for energy investments in Africa.
He reaffirmed NUPRC’s commitment to collaborating with global investors, financiers, and energy stakeholders to unlock the nation’s full hydrocarbon potential while driving sustainable development.
