Chairman of Heirs Holdings Group, Tony Elumelu, has identified finance and energy pillars that are crucial to Nigeria’s lasting prosperity.
Speaking during the third Anniversary of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, he lauded the transformative and bold initiative of NPRC’s Project 1 million barrel of oil (mbopd) initiative, and its impact on the energy sector.
He said the theme of the programme: “Transformation, Innovation & Excellence,” resonated deeply with the challenges and opportunities facing Nigeria’s energy space.
Elumelu said Nigeria is faced with the threat of declining production and investment, adding that Nigeria’s oil production has been on a downward trajectory, falling from peaks of over two 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. 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,” he said.
Elumelu explained that these factors together threaten the very foundation of our economy, as we are heavily dependent on oil.
“As a nation, we can not permit this to continue, and squander our inheritance and betray our next generation,” he advised.
He said the Project 1MMBOPD is so critical, a crucial part of the solution to unlocking the next phase of Nigeria’s development.
“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,” he said.
He explained that to be sustainable, this initiative should go beyond just increasing production; it should catalyse a comprehensive strategy to revitalize our entire upstream sector.
The project should encompass key elements of infrastructure modernization, that requires upgrading Nigeria’s aging facilities to improve efficiency and reduce downtime; implementing advanced technologies and community engagement strategies to secure assets and NUPRC’s commitment to creating a more transparent and efficient regulatory environment.
He said that by addressing these areas comprehensively, Nigeria will not only aim to reach the 1MMBOPD target but also to create a sustainable framework for future growth.
Elumelu said that embarking on this ambitious project to boost oil production, also requires focus on the critical role of gas in the energy mix.
“The path to 1MMBOPD must be constructed on strategies that maximize the value of our gas resources, reducing flaring and increasing utilization for domestic and export markets. This dual focus will help diversify our energy portfolio and mitigate the risks associated with over-reliance on oil,” he said.
“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,” he stated.
He lauded NUPRC’s achievements, including its efforts at promoting sustainable practices, such as the Nigerian Gas Flare Commercialisation Programme, exemplify the innovation required to balance environmental stewardship with economic growth.
He said that Heirs Energies, is also actively contributing to the solution. For instance, during the first 100 days after it took over operational control of the OML-17 asset in 2021, the company doubled its 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 five per cent terminal receipts in December 2021, year-to-date in 2024, we have recorded an average terminal receipt of 85 per cent; a remarkable improvement and a good example of what a purposeful collaboration between NNPCL and operators underpinned by rigorous execution can deliver,” he said.
He explained that 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.
Overall, he said the launch of Project 1MMBOPD is an excellent industry initiative; it is a national imperative and a comprehensive solution to the challenges facing our oil and gas sector, and most importantly our country’s economy.
“It embodies the transformation we seek, the innovation we need, and the excellence we must achieve. NUPRC’s leadership in this endeavour is commendable, and I call upon every stakeholder here today to rally behind this vision,” he said.
