The Chairman of Heirs Energies, Tony Elumelu, says Project 1MMBOPD (One million of barrel of oil production per day) will proffer solutions to the decline in Nigeria’s oil production.

Elumelu said this at the launch of Project 1MMBOPD in Abuja on Monday, October 21, 2024.

The event was held in commemoration of the third anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Elumelu, who is Group Chairman of the United Bank for Africa (UBA), said Nigeria’s oil production has been on a downward trajectory, falling from peaks of over 2 million barrels per day to below 1.5 million recently.

He stated: “This decline translates to lost revenues, reduced global market share, and missed opportunities for national development.

“The root causes are multifaceted: aging infrastructure, security challenges in the Niger Delta, stalled investments, regulatory uncertainties, and a global shift towards renewable energy that has compounded the investment challenge.

“These factors, combined, threaten the very foundation of our economy, as we are heavily dependent on oil.

“As a nation, we cannot permit this to continue, and squander our inheritance and betray our next generation.”

Elumelu, who called for various reforms to increase Nigeria’s oil production and revitalise the nation’s upstream sector, described Project 1MMBOPD as a crucial part of the solution to unlocking the next phase of the nation’s development.

He also described the project as a national imperative and a comprehensive solution to the challenges facing Nigeria’s oil and gas sector and the economy in general.

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Elumelu said: “By targeting to grow production by one million barrels of oil per day from current levels, we are setting a clear and challenging goal; one that I believe is achievable as I see all stakeholders are at the table and will commit to play their parts and bring the needed collaboration, innovation, and excellence to make this project a success, for the benefit of our country.

“To be sustainable, this initiative should go beyond just increasing production; it should catalyse a comprehensive strategy to revitalise our entire upstream sector.”

He said the project should encompass key elements such as infrastructure modernisation, security enhancement, regulatory streamlining, investment attraction, and technology adoption.

Elumelu added: “By addressing these areas comprehensively, we will not only aim to reach the 1MMBOPD target but also to create a sustainable framework for future growth.

“As we embark on this ambitious project to boost our oil production, let us also keep our focus on the critical role of gas in our energy mix.

“The path to 1MMBOPD must be constructed on strategies that maximize the value of our gas resources, reducing flaring and increasing utilisation for domestic and export markets.

“This dual focus will help diversify our energy portfolio and mitigate the risks associated with over-reliance on oil.

“We know the criticality of gas in improving access to electricity in Nigeria. Access to electricity is the single most important factor in our quest for industrialisation.  You can now see that our oil and gas sector is pivotal to the development of our country.”

The Heirs Energies boss, therefore, commended the NUPRC for promoting sustainable practices such as the Nigerian Gas Flare Commercialisation Programme, saying the commission’s efforts showed the innovation required to balance environmental stewardship with economic growth.

The Star