Oando Plc says the Federal Government and regulators, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), have a responsibility to tackle security concerns and incessant vandalism to improve crude oil production .

Ainojie Irune, Managing Director of Oando Energy Resources Nigeria Limited (OERNL), spoke on Monday at the third anniversary celebration of the NUPRC, in Abuja, where the commission launched the one million barrel oil project by additional day (bpd).

On October 14, the Organization of the Petroleum Exporting Countries (OPEC) said Nigeria’s average daily crude oil production abandoned to 1.32 million b/d in September 2024, which is lower than the the country’s OPEC quota of 1.5 million b/d.

The NUPRC initiative is expected to increase projected production to 2.5 million bpd in two years.

Irune said that to maximize the ability of oil producers to meet their targets and efficiently dispose of what is produced, key stakeholders, particularly the government, “have a responsibility to address security and vandalism issues incessantly before key conversations arise.”

He said pipelines are in their current state due to several factors, the most common of which are safety issues and disruption due to vandalism.

According to Irune, aligning all key players in the value chain is the only way to address challenges and generate long-term results.

“We must prioritize process and production safety over quick wins and continued value perspective; otherwise, all our ambitions to produce millions of barrels will be doomed from the start,” Irune said.

He commended the NUPRC and NNPC for the crucial steps taken to revitalize the Nigerian power sector.

“For the first time in our country’s history, we have seen a regulator actively promoting business transformation rather than simply enforcing regulations,” he said.

“The NUPRC has set ambitious targets for the industry, and it is the responsibility of industry stakeholders to implement the business and operational changes necessary to achieve these targets.

“Furthermore, we have witnessed a revitalization of the NNPC which has implemented significant changes, especially in relation to personnel and decision-making. »

Decisive actions, he said, are crucial to the continued success of the business and, by extension, the continued achievements of the industry.

“Without such measures, the undesirable status quo would likely have persisted,” Irune said.

“NUPRC EXECUTED 17 REGULATIONS IN THE OIL AND GAS INDUSTRY”

For his part, Gbenga Komolafe, Chief Executive Officer (CEO) of the NUPRC, highlighted the achievements of the commission since the enactment of the Petroleum Industry Act (PIA) in 2021.

“Firstly, regarding the development of regulations, we have managed to introduce essential regulations in collaboration with industry stakeholders who implement the Petroleum Industry Act and encourage clarity, predictability and regulatory transparency,” he said.

“So far, twenty-five priority regulations have been developed and seventeen have already been executed. This approach has optimized regulatory processes and strengthened investor confidence.

“Regarding the flow of oil and gas reserves, together with industry stakeholders, we have implemented initiatives to increase oil and gas reserves through studies and development initiatives up to the current level of 37.7 billion barrels of oil and gas through 0.9.2 cities this year, accounting for 30% and 33% of the country’s oil and gas reserves. Africa, respectively.

Komolafe charged stakeholders to partner with government as it continues to make necessary changes in the industry to ensure the sector remains competitive, productive and prosperous.