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Nigeria's oil reserves hit 37.50bb

Nigeria's crude oil reserves increased from the 36.96billion barrels (bb) of January 1st to 2023 to 37.50bb on January 1st 2024.

Besides, the country's natural gas reserves rose from the 208.83Trillion Cubic Feet (TCF) of January 1, 2023 to 209.26TCF on January 1, 2024.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive Officer, Engr. Gbenga Komolafe who disclosed to reporters in Abuja yesterday attributed the increase in the reserves to production from some of the marginal fields in the country.

The NUPRC Chief Executive said several initiatives of the commission were accountable for the feat.

"The brown fields and marginal fields, some of them, have started producing producing and contributing to our national oil and gas reserves," he said.

According to him, the data indicates the level of hydrocarbon capacity the nation is endowed with.

He described the declaration as a positive data for the nation.

On the template for domestic crude oil supply obligation, Komolafe revealed that in compliance with the provisions of Section 109(2) of the Petroleum Industry Act (PIA), 2021, the commission, in a landmark move, has developed a template guiding the activities for Domestic Crude Oil Supply Obligation (DCSO).

He recalled that in conjunction with relevant stakeholders from Nigerian National Petroleum Company (NNPCL) Upstream Investment Management Services (NUIMS), representatives of Crude Oil/Condensate Producers, Crude Oil Refinery-Owners Association of Nigeria (CORAN) and Dangote Petroleum Refinery, the commission came up with the template for the buy-in of all, in a bid to foster a seamless implementation of the DCSO and ensure consistent supply of crude oil to domestic refineries.

The commission's boss said the strategic initiative aligns with the policy of the current administration and the declaration of President Bola Tinubu that Nigeria is ready for business.

He added that Tinubu as part of his fiscal policy vacated barriers to investment in the oil and gas sector.

Komolafe said this aligned with Nigeria's commitment to bolstering domestic refining capacity and ensuring the   sustainability of its oil industry.

He said: "The template provides a transparent framework aimed at fostering collaboration among stakeholders for a thriving energy sector. It is therefore my pleasure to unveil the template for DCSO compliance.

"With this development, the second half of 2024 is poised to witness increased synergy between local refineries and producing companies, setting the stage for a more robust and self-reliant petroleum landscape in Nigeria."

Asked whether the template took decision on the currency of transaction of crude oil to domestic refineries, he said according to the PIA, the parties (refinery and crude oil producers) are to agree on the currency of transaction whether Naira or dollar.

He said crude oil is an international commodity and it's price is taken as such.

Komolafe explained that no legitimate crude oil shipped outside Nigeria could be stranded because every official consignment has a designated destination. He was responding to why there is shortage of crude for domestic refineries while some crude oil bearing vessels were stranded in the high seas.

According to him, crude oil allocation is based on request from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) presented to the commission and the actual capacity of the producers.