This article discusses the plan NUPRC has released for 2024, and regulatory measures it would take to fulfil its purpose.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rolled out its action plan for 2024, outlining the regulatory measures it would take to fulfil its purpose, as well as for the near future, from 2024 to 2026.
In a press statement released, the Chief Executive Officer (CEO) of the Commission, Mr. Gbenga Komolafe, stated that the Regulatory Action Plan (RAP) was centered around automation, unit cost of production optimization, future licensing cycles policy and implementation, and predictability.
Komolafe said it also focused on business process improvements for operational efficiency, promoting ease of entry and investment retention, vacating entry barriers associated with huge asset acquisition fees, deepening transparency, accountability and elimination of discriminatory practices.
He listed others as implementation of a carbon credit earnings framework for upstream operations, accelerating the execution of oil and gas development and production projects, and enforcement of Drill or Drop provisions of the Petroleum Industry Act(PIA).
“Other areas of focus include the optimization of federation revenues, decarbonization and greenhouse gas (GHG) emissions management in producing environment and Incorporation of green story in FDPs.
“It includes diligent monitoring of the implementation of the Nigerian Gas Flare Commercialization Program (NGFCP) awarded sites for optimum flare-out monetization and Host Community Trust Fund implementation and guiding the trust fund activities.
“This will reduce agitation in the operations areas and 100 per cent hydrocarbon accounting,’’ he said.
The CCE further said that the RAP also targeted the implementation of the new production curtailment regime and domestic crude supply obligation, annual asset performance assessment and reviews, enforcement of Domestic Crude Supply Obligation (DCSO).
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He said it targeted Domestic Gas Distribution Obligation (DGDO) to improve domestic refining capacity, implementation of frontier exploration fund, decommissioning and abandonment fund and zero tolerance to default in royalty payment.
According to him, value creation through approval of annual work program/budget and monitoring of financial viability, crude oil and gas pricing in contemporary terms and revenue generation and implementation of zero default strategy on payment of royalty are included.
Komolafe indicated that the foregoing represented in broad terms the key thematic focus areas that would underpin the commission’s activities in 2004.
“These are in addition to the Commission’s commitment to its general objectives and functions as provided in the PIA and by implication all other laws relating to upstream petroleum operations in Nigeria,” he added.
He explained that the aim of focusing on these areas was to bring into rapid effect, the transformation of the sector envisaged by the PIA (2021) and ramp up the efficiency and performance of the Sector.
He was optimistic that the implementation of these initiatives would increase revenues generated for government from the industry, improve operating environment, optimize value, generate jobs, and position the country as a destination for foreign direct investment.