Nigeria’s oil production fails to meet OPEC quota by 0.8mbpd

Forum 11 months ago

Nigeria’s oil production fails to meet OPEC quota by 0.8mbpd

Efforts by the Federal Government to boost oil production suffered a massive setback in April as crude oil production fell below one million barrels per day.

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The latest figures released by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, yesterday showed that Nigeria produced 998,000 barrels of crude oil daily last month, a drop by 21.25 percent compared to 1.26 million barrels daily production in the month of March 2023.

When added to condensate oil, the total volume produced daily in April was 1.24 million barrels compared to 1.52 million daily production in March.

Condensate oil is not part of Nigeria’s production quota set by the Organisation of Petroleum Exporting Countries.

The Federal Government has however blamed insecurity, low investment and energy transition issues for low production of oil in the country.

NUPRC Chief Executive, Engr Gbenga Komolafe who spoke at a workshop for oil host communities in Abuja said the commission was prioritising efforts towards increasing production to ensure maximum revenue for the government.

Komolafe, who was represented by the Executive Commissioner, Economic Regulations and Strategic Planning, Dr Kelechi Ofoegbu, explained that with the coming into effect of the Petroleum Industry Act 2021, host communities have a major role to play in ensuring the security of oil pipelines and other infrastructures in their areas.

According to him, “to further stem the tide of sabotage and third-party interferences on oil and gas critical infrastructure, the PIA has in effect domesticated the protection of our oil and gas infrastructure to the Host Communities.

“One critical milestone under the PIA is the incorporation of Host Communities

Development Trust (HCDT) by the settlor provided for in Section 235 as well as appointment of Board of Trustees (BOT) by the settlor in consultation with the host communities.

“The settlors are the Oil and Gas companies operating within host communities.

Section 240 (2) of the PIA stipulates that each settlor, where applicable through the operator, shall make an annual contribution to the applicable host communities development trust fund of an amount equal to 3% of its actual annual operating expenditure of the preceding financial year in the upstream petroleum operations affecting the host communities for which the applicable host community’s development trust fund was established”.

He also disclosed that so far, the Commission has successfully approved 75 Host Community Development Trusts out of which 41 have been fully incorporated by the CAC.

“We have also prequalified a total of 19 Fund Managers and commenced the process of establishing a baseline of ongoing community development projects, in preparation of ensuring the migration of such into the HCDTs. In addition, the Commission has in partnership with an OEM developed an industry intelligent, digital automated platform for reporting and monitoring the Host Community Development Trust (HCDT) for transparent administration of the HostCom provisions of the PIA”, he added.