Mohammed Shosanya
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is ready to attract local and international investors in the nation’s oil and gas space.
The Commission is driving this intent by leveraging the Petroleum Industry Act (PIA), 2021 which has enhanced the business landscape in Nigeria’s petroleum in dustry, providing a more transparent, efficient and investment-friendly regulatory framework,its Chief Executive Officer, Engr. Gbenga Komolafe said.
He spoke at the Nigerian Oil and Gas Opportunity Fair (NOGOF 2023), which held in Yenagoa, Bayelsa State recently.
According to him, the Commission has developed priority regulations to reinforce meaning to the intent of the Act, hence creating a predictable regulatory environment for would-be investors.
He noted that hithertho,five priority regulations have been gazetted, while thirteen others have be en submitted to the Ministry of Justice for review,adding that eight are at various stages of development.
He added:“Nigeria’s role as a major player in the global oil and gas industry is certainly not in doubt, as we are currently the highest oil producer in Africa and the second highest in terms of proven oil reserves, with a huge potential for growth. As of January 1, 2023, Nigeria boasts of 36. 966 billion barrels of oil and Condensate reserves and 208.83 trillion cubic feet of natural gas reserves, opening a large opportunity for investments in the upstream oil and gas sector.
“Despite the global clamour for decarbonization and energy transition, oil and gas remain relevant in the global energy mix, to guarantee energy security for our teaming population.
“In order to deliver on her commitments towards reduction of carbon footprints, Nigeria has adopted gas as a transition fuel and expects to significantly increase gas consumption during “the Decade of Gas” declared by the President, His Excellency Muhammadu Buhari GCFR. This adoption of natural gas as a transition fuel is a boost for Nigeria which has over 208 trillion cubic feet (TCF) of gas reserves that can be harnessed to help the country’s transition to Net Zero by 2060 while driving economic growth and development, thereby simultaneously tackling energy poverty and meeting the climate
ambition”
He said,the Commission has intensified efforts to grow gas reserves, boost production and eliminate routine gas flares in all upstream operation across the value-chain, while also dealing with methane capture and other fugitive gas emissions.
He explained that the import of this is that more gas would be available for domestic utilization as Liquefied Petroleum Gas (LPG), feedstock for power generation plants, fertilizer plants and petrochemicals to mention but a few.
He also said,the Commission as the upstream petroleum industry regulator, has embarked on the development of a regulatory framework for carbon pricing system, to make businesses pay for their emissions and incentivize emission reductions through carbon credits.
He noted that a new Department called Energy Transition and Carbon Monetisation has been created in the Commission to coordinate the drive towards energy transition in the Nigeria oil and gas sector.
He said,the new department will drive the focussed implementation of robust regulatory framework for decarbonisation of upstream operations, introduce clean mechanisms in field development, mitigate impact of energy transition and ensure sustained investments in Upstream operations whilst improving the environment credentials of oil and gas. It is our hope that in months to come, we should be able to share the vital lessons from the Nigerian transition success story to the global community.
He added:“The Commission since inception has concluded and commenced various initiatives and programmes to create investment opportunities and enhance the development of the upstream oil and gas Industry in Nigeria, notable among which are: “Completion of the 2020 Marginal Field Bid Round and award of Petroleum Prospecting licences (PPL). Initiation of the ongoing 2022/2023 mini bid round for deep offshore assets; Recommenced the Nigerian Gas Flare Commercialization Program, which is also ongoing.
“Though these programs have been initiated and are ongoing, opportunities still exist for investors as NUPRC continues to implement strategic actions and initiatives aimed at increasing national crude oil and gas reserves and production. In this regard, the Commission will in the weeks ahead organise its Maiden Nigerian Upstream International Investment and Financial Roadshow (NUIIFR) for Petroleum Prospecting Licence (PPL) Awardees, NGFC P Bidders, and potential investors in the upcoming Mini Bid for Deep Water Assets.
“The move is to explore funding opportunities and leverage capabilities of industry players, prospective Investors (local and offshore) to de risk the as sets and awards. The event will provide opportunity for participants to network, exchange ideas and chart strategic pathways to enhance investment opportunities.