Mohammed Shosanya

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has said there is still hope that the revoked licence for OML 46 (also known as Atala Oilfield), belonging to Bayelsa State, will be returned to the state.

The Federal Government through the defunct Department of Petroleum Resources (DPR) had in controversial circumstances revoked the licence in April 2020 when another son of the state, Timipre Sylva, was the Minister of State for Petroleum Resources.

Lokpobiri, during a visit to Governor Douye Diri on Tuesday night, at the Government House, Yenagoa, expressed regrets that the Atala oilfield, a common patrimony of the state, was taken away.

A statement issued by the Chief Press Secretary to the Governor, Daniel Alabrah, on Wednesday, quoted the minister as saying he would do everything within his power to bring back the asset.

Lokpobiri explained that his visit was to seek collaboration with the state government to address issues concerning Bayelsa and for the state to reap the dividends of democracy.

He congratulated Diri on his re-election and sought the government’s partnership to curb pipeline vandalism and crude oil theft.

He said the menace had resulted in the reduction of revenue from the federation account to oil producing states, adding that Bayelsa had zero derivation for about four months in 2023.

Lokpobiri also expressed concern over the level of pollution caused by illegal bunkering activities, noting that if the trend was not checked, it could be an existential threat.

He said, “Bayelsa State is more polluted than Ogoni in Rivers State and we are the only people that can put a stop to it. We need to do something to protect our water and land resources.

“It is also important to note that illegal refineries affect the income of our state. The governor can attest to the fact that derivation money has been dwindling. There was zero derivation for months. We are changing our security architecture to one that could be more effective. So, we need to work together to change the narrative.”

In his response, Diri congratulated Lokpobiri on his appointment and appreciated President Bola Tinubu for appointing a worthy son of Bayelsa as Minister of State for Petroleum Resources.

He assured the Federal Government of his administration’s preparedness to partner with it to check oil theft and illegal bunkering, which had adversely affected the ecosystem.

He stressed the need to involve governors of the Nigeria Delta states working together to stamp out the menace.

The governor said, “We want to see the positive impact of your office. We are on a new journey to change the trajectory of your office. That is why l am pained that it was in your time that the office was balkanized. Bayelsa has more gas than oil. So we would have been happier if you were presiding over gas as well.

“We need more exchange of ideas. Today, you have given us hope. You have assured me that Atala oilfield will come back to Bayelsa.

“I believe that you will right a lot of wrongs done to our people. No Bayelsa man has an oil mining licence and the only one we had was taken away by our own son.”

Urging Lokpobiri to partner with the state government to explore ways of attracting development to the state, Diri bemoaned the situation where the Nigeria Liquefied Natural Gas (NLNG) Company in Bonny, Rivers State, receives 60% of its gas from Bayelsa but the company pays tax to Rivers.

He noted that Bayelsa was deprived of legitimate income and taxes while being erroneously rated as financially insolvent.

He restated his position that the real viability of states can only be determined when the country practises fiscal federalism and resource control.

Mohammed Shosanya

The Nigerian Upstream Petroleum Regulatory Commission has rolled out its action plan for 2024 and near term 2024 to 2026.

The plan highlights in broad terms the regulatory approach and actions that are to be implemented by the Commission in furtherance of its mandate as the apex regulatory agency established to supervise upstream petroleum operations in Nigeria.

According to a statement,the Regulatory Action Plan (RAP) is focused on regulatory and predictability, future licencing rounds policy and implementation, unit cost of production optimisation, automation and 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 regulatory practices, 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 (2021).

It added that other areas of focus include the optimisation of federation revenues, decarbonisation and greenhouse gas (GHG) emissions management in producing environment and Incorporation of green story in FDPs, diligent monitoring of implementation of the Nigerian Gas Flare Commercialisation Programme (NGFCP) awarded sites for optimum flare-out monetisation, Host Community Trust Fund implementation and guiding the trust fund activities to reduce agitation in the operations areas and 100% hydrocarbon accounting.

The RAP also targets 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) and Domestic Gas Distribution Obligation (DGDO) to improve domestic refining capacity, implementation of frontier exploration fund, decommissioning and abandonment (D&A) fund, zero tolerance to default in royalty payment, value creation through approval of annual work programme/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.

The Commission’s Chief Executive (CCE), Engr. Gbenga Komolafe, explained that the foregoing represents in broad terms the key thematic focus areas that would underpin the Commission’s activities in 2004.

It said:“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.”

Komolafe was quoted in the statement as stating that in focusing on these areas, the Commission aims 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 expressed optimism that the implementation of these initiatives would in the short- and long-term increase revenues generated for Government from the industry, improve the regulatory and operating environment, optimise value, generate jobs, and position the country as a destination for foreign direct investment for the Sector.

He noted that as a strategy-driven organisation, the NUPRC is firmly committed to setting a clear agenda for the Nigerian upstream sector to engender efficiency and effectiveness in line with the PIA and government aspirations for a virile, functional and profitable oil and gas sector.

He added:“The Commission will ensure that the RAP for 2024 and the near term is implemented vigorously by all concerned in the beneficial interest of operators, service providers, industry participants and other stakeholders, all in the overriding national interest.”

He explained that the public policy statement is issued within the context of the global energy landscape which is currently in a state of rapid change in response to climate concerns and the challenges faced by the fossil fuel industry and economies long dependent on it.

He said:“These challenges include climate change issue, the energy transition momentum, and the drive towards net zero emissions by the international comity of nations in such Forums such as the recently concluded United Nations Conference of Parties (COP) 28 conference in Dubai, United Arab Emirates, and such other international forums before it.”

According to him,Nigeria’s position on energy transition aligns with that of OPEC in the call for just, inclusive, equitable and balanced energy transitions.

“In the words of His Excellency, Bola Tinubu, at the United Nations General Assembly (UNGA) in September 2023, Mr. President underscored the fact that ‘African nations will fight climate change, but we must do so on fair and just terms … (and) must accord with our overall economic efforts’”; a position echoed by other world leaders at UNGA and similar gathering during 2023.

He said that the agenda for Nigeria, Africa, and other resource-rich developing economies is that the evolving energy dynamics must be calibrated against geography, history, and politics as well as the need for energy justice, equity, inclusivity, and sustainability.