The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rolled out measures to reduce the cost of crude oil production to less than $20 per barrel, The Nation learnt at the weekend.
According to a document entitled: “Outlook for the Upstream Oil and Gas Sector of the Nigerian Oil and Gas Industry for 2024 and the Near Term (2024-2026), which our Abuja correspondent obtained, the sub-optimal level of crude oil production in the country is between $25 and $40/ barrel.
The document, which the Commission’s Chief Executive, Gbenga Komolafe, authored, noted that NUPRC will set up a framework for crude oil and gas transportation
The NUPRC boss said: “In accordance with the commercial regulation mandate of the Commission as enshrined in Section 4 of the Petroleum Industry Act (PIA), the Commission would, in 2024 and the near term, pursue strategies aimed at optimising the unit cost of production for oil and gas by driving the reduction of the current average unit cost of production in all terrains to below $20 per barrel, in the near term from current sub -optimal levels of $25-$40 pet barrel.”
To achieve the plan, the commission, said Komolafe, has not only set up a framework for oil and gas transportation and/or handling costs based on a standardised tariff template/model, it has also planned to implement an open access regime for upstream oil amd gas pipelines and ancillary facilities.
The document also noted that the commission has planned to incentivise investment in oil and gas infrastructure to boost domestic delivery and stimulate the deregulated domestic gas market through the ease of administrative approval processes.
