Herein this article, we discussed how bringing NUPRC closer to oil and gas operators will boost efficiency in the industry.
The Nigerian Upstream Regulatory Commission (NUPRC) occupies a very influential position in Nigeria’s oil and gas industry. They ensure compliance with petroleum laws, regulations and guidelines, monitoring of operations at drilling sites, producing wells, production platforms and flow stations, crude oil export terminals, and all pipelines carrying crude oil, and natural gas, supervising operations being carried out under licenses and leases, monitoring operations to ensure that they are in line with national goals and aspirations, including those relating to Natural Gas Flare elimination & monetization, Domestic Gas Delivery Obligations and Domestic crude oil supply obligations and ensures that Health Safety & Environmental regulations conform to national and international best oil field practice.
The NUPRC maintains records on upstream petroleum operations, advises the government on technical matters, and ensures timely payments of rents, royalties, and revenues. However, politicians and analysts perceive NUPRC’s actions more as political than economic, closely monitoring its activities and complaining about developments that don’t fit their pre-conceived idealism. They prefer realism based on purely economic considerations, rather than focusing on politics.
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The Nigerian Petroleum Regulator (NUPRC) is attempting to relocate personnel, particularly field officers, to Lagos, where many oil and gas companies have offices, due to the Petroleum Industry Act’s aim of restructuring and productivity.
The decision to leave Abuja has been politicized and misinterpreted, causing a distraction to the Nigerian Petroleum Regulators Council (NUPRC) under Engr. Komolafe.
The NUPRC has developed regulations to eliminate regulatory bottlenecks and ensure seamless upstream petroleum operations. These include Petroleum Licensing Round Regulations 2022, Petroleum Royalty Regulations 2022, Conversion and Renewal (Licenses and Lease), Nigeria Upstream Petroleum Host Communities Development Regulations 2022, Domestic Gas Delivery Obligations Regulations 2022, Nigeria Upstream Petroleum Measurement Regulations 2023, Production Curtailment and Domestic Crude Supply Obligation Regulations, and Nigeria Upstream Decommissioning and Abandonment Regulations 2023.
Also, the 14 draft regulations awaiting gazetting include Upstream Petroleum Fees and Rent Regulations, Acreage Management Drilling and Production Regulations, Upstream Environmental Remediation Fund Regulations, Upstream Petroleum Safety Regulations, Upstream Petroleum Environmental Regulations, Upstream Petroleum Measurement Regulations, Advance Cargo Declaration Regulations, Draft Upstream Commercial Operations Regulations, Draft upstream Petroleum Code of Conduct & Compliance Regulations, Draft Upstream Petroleum Development Contract Administration Regulations, Draft Upstream Revocation of licenses and Lease Regulations, Draft Upstream Petroleum Assignment of Interest Regulations, Draft Nigerian upstream Petroleum (Administrative Harmonization) Regulations and Draft Amendment to the Nigerian Upstream Petroleum Host Communities Development Regulations 2022.
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The Commission has engaged stakeholders on its draft regulatory framework for energy transition, decarbonization, and carbon monetization. The framework will govern the Energy Transition and Carbon Monetization Division and the entire industry in considering energy transition in oil and gas field development.
Engr. Komolafe’s visit to the Philippines has attracted investors, with the country’s oil and condensate reserves at 37.046 billion barrels and 208.62 trillion cubic feet (TCF), respectively, up 0.37 percent and 1.01 percent, respectively, as per the reserves report as of January 1, 2022.
He has taken deliberate steps to drive the Decade of Gas program declared by the Federal Government through more aggressive development of the nation’s huge gas resources, enhanced exploration activities, development of utilization schemes leading to gas reserves growth, increased gas production, maturation of domestic and export gas markets, in addition to gas flare elimination and commercialization through the Nigeria Gas Flare Commercialization Program (NGFCP).
He contributed immensely to the funding of the Federation’s activities.
In 2024, plans are underway to hold the licensing round in line with Section 73 of the nation’s PIA. The Engr. Komolafe-led Commission will optimize the functionality of automation systems by enhancing the efficiency of existing optimizing tools and the streamlined deployment of new ones while collaborating with relevant government entities to grow oil and gas production in the best interest of all stakeholders, including investors and Nigeria.
This and other plans are targeted at increasing oil and gas production and extending foreign exchange generation for the government and other stakeholders.
As Engr. Komolafe disclosed at the just-concluded Petroleum Technology Association of Nigeria (PETAN) Sub-Saharan Africa International Petroleum Exhibition and Conference in Lagos, the operations of the agency will continue to be driven by modern technology, improved transparency in hydrocarbon measurement and accounting, and collaborative work program administration with the exploration and production companies.
Unequivocally, the planned movement of field officers to Lagos should be endorsed and supported by everyone, as it promises to not only bring NUPRC much closer to the oil and gas companies and other stakeholders but also position the agency to operate more efficiently while minimizing costs and maximizing returns to the government and nation.