Richard Ginika Izuora
The Commission Chief Executive, CCE, of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Gbenga Komolafe, has listed key policy initiatives which the Commission identified as major drivers that spur oil production in the next few months.
Komolafe who presented a paper on, POST PIA: REGULATION AND EVALUATING SECTORAL IMPACT SO FAR” at the 2023 annual conference of the Association of Energy Correspondents, NAEC, in Lagos on Thursday, said that over the next few months, the country would record a marked increase in oil and gas production volumes.
The CCE, pointed that the quick-win strategies such as the Agency’s aggressive drive to reactivate shut-in and declining wells will boost production prior to the onset of more long-term initiatives like operations from the new Marginal Field awardees.
He also revealed that the Commission is working alongside security operatives to bring a halt to the menace of crude oil theft, which has over the years contributed to a huge loss of production.
He added that with the commencement of projects under the Nigerian Gas Flare Commercialisation Programme (NGFCP), the NUPRC expect to see a rapid decline in gas flaring rates and an increase in gas supply to our domestic market.
Komolafe, said the Commission would be leveraging on technology to achieve its mandate by ensuring all processes become fully automated, transparent, and accountable in line with the tenets of the Petroleum Industry Act, PIA.
Dwelling on the theme of the conference, “Nigeria’s Energy Transition: Enhancing Investment Opportunities & addressing challenges in the Oil and Gas Sector”, Komolafe said the theme is apt, as it provides the instance to re-assess the Commission’s preparedness for energy sustainability and value optimization in the Nigerian oil and gas sector.
According to him the Petroleum Industry Act (PIA) 2021 has set out a framework to enhance the business landscape of Nigeria’s petroleum industry, as it has provided a more transparent, efficient and investment-friendly regulatory framework for the industry.
This he stated had renewed disposition reflects the nation’s readiness to attract local and international investors in the oil and gas space.
In particular he noted that Section 6 of the Act enumerated several objectives of the Commission as the upstream petroleum regulator.
“Drawing from these objectives, our regulatory focus has been, amongst others, to increase Nigeria’s Oil and Gas Reserves and Production rates; develop a transparent approach to hydrocarbon accounting as well as to attain operational efficiency by producers. “Furthermore, in adherence with the provisions of the PIA, the Commission is poised to ensure peace and harmony in host community environment that will guarantee seamless operations in the industry, contribute to reducing unit operating cost, create sanity and predictability while attracting investment opportunities.” he said.
The CCE, further assured that the NUPRC is also committed to ensuring safe operations in the upstream petroleum sector thus enabling Maximum Economic Recovery through enhanced resources management and asset stewardship.
To achieve these, the Commission has developed priority regulations to provide meaning to the intent of the Act, hence creating a predictable regulatory environment for would-be investors.
He said so far, 23 Regulations have been developed out of which 12 have been gazetted and published, 5 have been uploaded on the Commission’s website for stakeholder comments and 3 have been reviewed by Federal Ministry of Justice completion while another 3 are awaiting review by the Ministry, he said.