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Category: Oil & Gas

  • NUPRC opposes establishment of oil, gas decommissioning body

    NUPRC opposes establishment of oil, gas decommissioning body

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has opposed the National Commission for Decommissioning of Oil and Gas Installations (NC-DOGI) establishment Bill (2024).

    The position of NUPRC was contained in a memorandum submitted at a public hearing organised by the House Committee on Petroleum Resources (Upstream) in Abuja.

    Earlier, the Chairman, House Committee on Petroleum Resources (Upstream), Rep. Ado Doguwa (APC-Kano), said that over the years, Nigeria’s petroleum industry had continued to face challenges in the decommissioning and abandonment of oil and gas facilities.

    According to him, these challenges have environmental, economic and social impacts, particularly on host communities.

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    “This, therefore, calls for a closer look at whether the existing regulatory frameworks are sufficient or need to be strengthened and whether establishing a dedicated body, such as the proposed commission, would better serve national interests.

    “It is, however, important to note that the Petroleum Industry Act (PIA) already provides for decommissioning and abandonment under Sections 232 and 233, assigning specific responsibilities to the NUPRC and MDPRA and also establishing a fund to ensure these activities are properly planned and financed in line with regulations,” he said.

    The chairman said that the NC-DOGI bill which was sponsored by the leadership of the house is a significant legislative proposal as it sought to address matters that affected human and environmental welfare.

    He said it reflected parliament’s commitment to ensuring the growth of the oil and gas sectors as well as ensuring environmental responsibility and sustainable community development.

    Doguwa explained that the public hearing was part of the legislative process of the National Assembly that ensured transparency, participation and inclusiveness in lawmaking.

    He said that the purpose for engagement was to provide a formal platform for stakeholders to express their views, make observations and offer recommendations that will ensure a fair and informed decision by parliament.

    In the memorandum the NUPRC had opposed the proposed establishment of the commission, saying it is unnecessary, duplicative and contrary to international best practices and is likely to discourage investments in the oil and gas industry.

    The commission maintained that the PIA already empowers NUPRC and Nigerian Midstream and Downstream Petroleum Regulatory Authority (MDPRA) to effectively manage decommissioning in their respective sectors of the oil and gas industry and these responsibilities are currently being discharged competently.

    “Section 232 of the Petroleum Industry Act (PIA 2021) mandates every licensee/lessee to submit a Decommissioning and Abandonment Plan aligned with the approver Feld Development Plan and the Commission already enforces this requirement through an established review workflow.

    “The House Committee on Petroleum Resources (Upstream) is respectfully urged to maintain decommissioning and abandonment oversight within the existing petroleum regulatory framework (NUPRC and NMDPRA).

    “This approach will ensure technical coherence, economic efficiency and alignment with both PlA 2021 and global standards, thereby safeguarding Nigeria’s interests in the oil and gas sector and promoting the Federal Government’s ease of doing business initiatives,” it said.

  • PENGASSAN strike cuts oil output to 1.58mbpd in Sept – NUPRC

    PENGASSAN strike cuts oil output to 1.58mbpd in Sept – NUPRC

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says Nigeria’s crude oil and condensates production fell to an average of 1.581 million barrels per day (bpd) in September 2025.

    The commission disclosed this in a statement on Saturday, citing official statistics released by its Head of Media and Strategic Communication, Eniola Akinkuotu.

    NUPRC attributed the drop to a three-day industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which led to the shutdown of several production and export facilities.

    It added that scheduled turnaround maintenance at two strategic facilities also contributed to the decline in output.

    According to the data, the 1.581 million bpd figure for September comprised 1.39 million bpd of crude oil and 191,373 bpd of condensates.

    “In September, the industry recorded total crude oil and condensate production of 47.43 million barrels, reflecting a 1.61 per cent year-on-year increase in average daily production.

    “This shows a slight improvement from the 1.55 million bpd recorded in September 2024, indicating gradual progress.

    ‘However, on a month-on-month basis, September’s output marked a 3.09% drop compared to 1.63 million bpd recorded in August 2025,” the commission noted.

    It said in spite of the setback, Nigeria achieved 93 per cent of its OPEC crude oil production quota of 1.5 million bpd in September.

    It further said during the review month, peak combined production (crude and condensate) reached 1.81 million bpd, while the lowest was 1.35 million bpd.

    The NUPRC said an analysis of production by the top eight streams in September showed Forcados Blend accounted for 15.86 per cent of total output, followed by Bonny Light at 13.31 per cent, and Qua Iboe at 9.88 per cent.

    It said Escravos Light contributed 8.96 per cent, Bonga Crude delivered 6.83 per cent, Agbami Condensate made up 4.94 per cent, Erha Crude accounted for 4.55 per cent, while Amenam Blend contributed 4.2 per cent of total production.

  • Nigeria aims to refine more oil locally – Lokpobiri

    Nigeria aims to refine more oil locally – Lokpobiri

    Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, says the Federal Government is determined to ensure that every barrel of crude produced in Nigeria adds real value at home and abroad.

    He said this while speaking at the 2025 COREN Summit in Lagos on Tuesday.

    Lokpobiri, who was represented by his technical adviser, Ndah Adaba, said improving local refining capacity and energy security remains central to Nigeria’s development goals.

    The theme of the summit is “Refinery – Key to Energy Security in Africa”.

    It brought together engineers, policymakers, and energy professionals from across the continent.

    According to the minister, as part of a deliberate policy and broader strategy, the ‘Naira for Crude’ sales agreement will continue to play a vital role in reducing the cost of fuel production.

    He added that it also help in mitigatinh exchange rate volatility, and supporting indigenous refining capacity.

    Lokpobiri stated that through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the government had streamlined the licensing process, from the Licence to Establish, to Construct, and Operate.

    This, he added, helps in ensuring that credible investors are supported rather than hindered by bureaucratic bottlenecks.

    The minister noted “Beyond licensing, the government is also facilitating crude oil supply to domestic refiners through the effective implementation of the Domestic Crude Oil Supply Obligation (DSCO).

    “No nation can claim energy independence without the ability to refine its own crude.

    He noted that the timing of the summit is critical, as Nigeria, and Africa at large, faces a pivotal moment requiring bold action to ensure energy security, promote indigenous refining, and position the continent as a net exporter of petroleum products.

    He said that under the Renewed Hope Agenda of President Bola Tinubu, indigenous refining had been identified as a key driver of energy independence, job creation, and industrial revitalisation.

    “Today, we have seen indigenous success stories such as Dangote Refinery & Petrochemical, Waltersmith Petroman Refinery, and Aradel Holdings, among others.

    “These demonstrate that Nigerians possess both the capacity and the will to refine Nigeria’s crude oil locally.

    “These projects are more than just facilities; they symbolize confidence in our policy direction. We are committed to replicating such success across all oil-producing states,”Lokpobiri said.

    In a move to expand Nigeria’s refining influence beyond its borderthehe added  that the government had  launched the West African Fuel Reference Market, aimed at positioning Nigeria as a regional hub for refining and petroleum product supply within the West African subregion.

    “With increased domestic refining capacity, Nigeria will not only meet its internal demands but also become a reliable supplier to neighboring countries, reducing dependence on distant refineries and costly maritime imports.

    “This aligns with the African Union’s vision for energy integration and intra-African trade under the African Continental Free Trade Area (AfCFTA),” he noted.

    Looking ahead, Lokpobiri said the government would  ensure feedstock security for all licensed refiners and deepen fiscal incentives to attract further investments.

    He also highlighted ongoing efforts to enhance collaboration among the Ministry of Petroleum Resources, NMDPRA, NUPRC, and security agencies to combat crude theft, pipeline vandalism, and improve relationships with host communities.

    The minister further stressed the need for African nations to collaborate on product exchange, logistics, and shared energy infrastructure.

    “The path to Africa’s energy security runs through the gates of our refineries and the institutions that support them.

    “The Federal Government remains fully committed to supporting indigenous refiners, strengthening regulatory institutions, and creating an enabling environment for sustainable growth in the downstream sector.

    “Let this COREN Summit 2025 serve as a renewed call to industry players, regulators, investors, and policymakers—to unite in building an Africa that refines what it produces and powers its future through its own resources,” he said.