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Tony Elumelu, Group Chairman of UBA and Chairman, Heirs Energy Limited, has advocated for various reforms in resolving the perennial challenges facing Nigeria’s energy space.
He stated this recently during the launch of Project1MMBOPD (One million barrels of oil production per day) initiative at the 3rd Anniversary of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) With the Theme: ‘Transformation, Innovation & Excellence’ at Transcorp Hilton Abuja.
Speaking while delivering his goodwill message Elumelu, called on stakeholders in the oil sector to resolve the perennial challenges facing the industry and commit to playing their parts and bring the needed collaboration, innovation, and excellence to make 1M MBOPD projecta success, for the benefit of Nigeria.
“Firstly, I congratulate the leaders of NUPRC for this momentous occasion.
As Chairman of Heirs Energies, an integrated and indigenous energy group playing a key role in facilitating energy sufficiency in Nigeria, and Chairman of the United Bank for Africa, which provides substantial funding across the energy value chain, amounting to several billions of US Dollars, to both indigenous and international oil and gas operators and oil trading companies, I stand before you at the intersection of finance and energy, two pillars that are crucial to our nation’s prosperity.
“I commend the transformative and bold initiative of NPRC: the Project 1 million barrel of oil (MMBOPD). We are faced with the threat of declining production and investment. And we must acknowledge the elephant in the room. Nigeria’s oil production has been on a downward trajectory, falling from peaks of over 2 million barrels per day to recent lows, below 1.5 million.
This decline translates to lost revenues, reduced global market share, and missed opportunities for national development,” he noted.
Speaking on the root causes for the low performance of the sector, Elumelu said they are multifaceted. He highlighted 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.
According to him, these factors, combined, threaten the very foundation of our economy, as we are heavily dependent on oil, and that we cannot permit this to continue, and squander our inheritance and betray our next generation.
As part of the solution to the challenges, Heirs Energies chairman stated that Project 1MMBOPD is so critical, and should be a crucial part of the solution to unlocking the next phase of our development.
In his words, he said: “By targeting to grow production by 1 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 revitalize our entire upstream sector. This project should encompass key elements such as Infrastructure Modernization; Security Enhancement; Regulatory Streamlining; Investment Attraction, and Technology Adoption. 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.”
In its three short years, NUPRC has already laid the groundwork for this solution by promoting sustainable practices, such as the Nigerian Gas Flare Commercialisation Programme, exemplifying the innovation required to balance environmental stewardship with economic growth.
These initiatives not only reduce our carbon footprint, but also create valuable opportunities for our workforce and communities.
“At Heirs Energies, we are actively contributing to this solution. In the first 100 days after we took over operational control of our OML-17 asset in 2021, we doubled our production from 28,000 to over 50,000 barrels per day.
“We suffered a setback with unabated crude theft, which caused us to shut-in and work collaboratively with the NNPC Limited to better secure the pipeline system. From a low of 5% terminal receipts in December 2021, year-to-date in 2024, we have recorded an average terminal receipt of 85%; a remarkable improvement and a good example of what a purposeful collaboration between NNPCL and operators underpinned by rigorous execution can deliver.
“With the improvement in the operating environment, we have restarted our investment and production growth journey, and have now successfully reversed the fall in production that we suffered in 2022 and 2023, as a consequence of the evacuation challenges. A few days ago, OML-17 attained over 51,000 barrels per day, and we continue our production growth journey.
“From my experience in other sectors that Heirs Holdings Group plays in, I can say that no sector develops without a strong regulatory environment and institution. This is why I must commend President Bola Ahmed Tinubu, GCFR, for his steadfast support and commitment to strengthening NUPRC as the oil sector regulator – This is much needed if we must achieve the total transformation of the Nigerian oil and gas sector,” he added.
