NUPRC Sets Sights on Industry Revamp with Comprehensive Action Plan
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced its action plan for 2024 and the near term of 2024 to 2026, outlining key regulatory measures to advance its mandate. Mr. Gbenga Komolafe, the Chief Executive of the Commission, revealed that the Regulatory Action Plan (RAP) is designed to enhance predictability, future licensing rounds policy and implementation, optimization of unit production costs, and automation.
Additionally, the plan focuses on improving operational efficiency through business process enhancements, facilitating ease of entry and investment retention, and removing entry barriers such as significant asset acquisition fees. It aims to promote transparency, accountability, and the elimination of discriminatory practices.
Komolafe highlighted the implementation of a carbon credit earnings framework for upstream operations, expediting oil and gas development and production projects, and enforcing the Drill or Drop provisions of the Petroleum Industry Act as crucial aspects of the plan. The RAP also targets the optimization of federation revenues, decarbonization, greenhouse gas emissions management, and the incorporation of green practices in Field Development Plans (FDPs).
Furthermore, the plan aims to monitor the implementation of the Nigerian Gas Flare Commercialization Programme (NGFCP) to maximize flare-out monetization and guide the activities of the Host Community Trust Fund to reduce agitation in operational areas and ensure accurate hydrocarbon accounting. It includes the implementation of a new production curtailment regime, enforcement of the Domestic Crude Supply Obligation (DCSO), and the Domestic Gas Distribution Obligation (DGDO) to enhance domestic refining capacity.
The Commission’s focus also extends to the implementation of a frontier exploration fund, decommissioning and abandonment fund, and a zero-tolerance policy towards defaulting in royalty payment. It aims to create value through the approval and monitoring of annual work programmes and budgets, optimizing crude oil and gas pricing, and ensuring zero defaults in royalty payments.
Komolafe emphasized that these initiatives align with the Commission’s commitment to the objectives and functions outlined in the Petroleum Industry Act (PIA) of 2021 and other relevant laws governing upstream petroleum operations in Nigeria.
He expressed optimism that the implementation of these measures would increase government revenues from the industry, improve the operating environment, create jobs, and attract foreign direct investment. In summary, the NUPRC’s action plan for 2024 and beyond aims to drive the transformation of Nigeria’s upstream petroleum sector envisioned in the PIA, enhancing efficiency, performance, and sustainability in the industry.
Source: NAN
