Oil and gas industry operators under the aegis of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry as well as the Independent Petroleum Producers of Group (IPPG) on Thursday met the upstream petroleum industry regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to fine-tune industry growth strategies for 2024 and beyond.
The meeting held in Lagos is part of the avowed commitment by the NUPRC to drive and grow sustainable investments in Nigeria’s upstream petroleum industry for energy security, sustainable national economic development to guarantee positive return value to all stakeholders in the sector.
The Commission Chief Executive, Gbenga Komolafe described the joint collaborative meeting as a defining moment in the relationship between the regulatory agency and the two leading associations in the Nigerian oil and gas industry, adding that the Commission values collaboration and partnerships toward the promotion of stability, growth and sustainability of the industry in line with the government’s aspirations.
“As we drive our collective response to the changing global energy dynamics, the Commission recognises the value of regulatory stewardship anchored on proactive agenda setting, mutual engagements and participatory oversight to engender positive change for the benefit of industry participants – majors and independents alike,” he said.
2024 Strategic Plan Unfolded
The CCE used the meeting to unfold strategic plans for the industry in the new year, announcing that the Commission would be engaging certified metering experts to conduct a technical integrity audit of the metering facilities in the Nigerian upstream sector to ensure that metering facilities functioned at best practices levels and industry allowable limit of error.
Komolafe briefed participants at the meeting that the Commission had equally put in place a robust framework to guide issues of divestments and implementation of decommissioning and abandonment of oil assets as well as Host Community Development Trust in the industry.
Tour of upstream facilities
“In the weeks ahead, the Commission will be conducting a tour of upstream facilities in Nigeria to ascertain their state of integrity and readiness to deliver value in line with the government’s targets to grow industry outputs in all ramifications,” the CCE announced.
Reiterating the Commission’s commitment to pursuing a proactive agenda toward deepening trust and entrenching regulatory clarity in 2024 and beyond, Komolafe re-echoed President Bola Ahmed Tinubu words at the sidelines of the 78th UN General Assembly in New York late last year, that Nigeria has never been more ready for business than it is now.
“This resounding statement underscores the commitment of national leadership to foster an environment conducive to business and investments,” he declared.
He reminded participants at the meeting of the resolve of the present administration to improve the business environment and the political ecosystem to attract investments and deepen participation in the key sectors of the Nigerian economy.
“In furtherance of Mr. President’s vision, and in recognition of the imperative for a robust and viable oil and gas sector, the Commission is unwavering in its determination to expand opportunities for existing players and facilitate the entrance of new entities.
Nigeria as global hub for oil and gas activities
“Riding on the charge of Mr. President, we believe that the time is indeed ripe for Nigeria to position itself as a global hub for oil and gas industrial activities,” he said.
The NUPRC Chief reiterated that the organisation was consistently strategy-driven in its regulatory activities and direction, adding that in May 2023, following a comprehensive assessment of industry performance and the identification of critical levers required to unlock value, the Commission unveiled the NUPRC Corporate and Regulatory Strategy (2023-2033).
10-year Corporate and Regulatory Strategy unveiled
The 10-year strategic outlook, he explained, outlines the broad plans which would guide the Commission’s activities to achieve its mandate as enshrined in the Petroleum Industry Act (PIA) for the Nigerian Upstream Oil and Gas.”
He said the NUPRC has maintained the strategic focus in recognition of the enormous pressure currently being faced by the industry as a result of climate concerns, net zero emissions targets and the attendant defunding of oil and gas projects.
The dynamics in the global energy arena, he pointed out, have necessitated that Nigeria, a country long dependent on the exploitation of oil and gas resources as the mainstay of its economy, must re-examine its policies to secure its energy future, while meeting global climate goals and commitments to the comity of nations.
The Commission, the CCE, said has set forth a clear agenda for the upstream petroleum sector, consistent with the provisions of the PIA, bordering on aspirations of the government for the industry.
Nigeria’s success, everyone’s success
The Commission’s objective, he said, was to cultivate an environment that fosters efficiency and ensures that every industry participant, including members of OPTS and IPPG, thrived in a virile, functional, and profitable sector inspired by the mantra: “When you succeed; Nigeria succeeds,”
He expressed optimism that the collaboration of the industry players in the growth and development of the sector would ensure that together, all the stakeholders could sustain and grow investments in the country’s upstream sector for energy security and national economic development for all.
To achieve this purpose, he said the Commission would continually refine its policy and regulatory philosophy with inputs from critical stakeholders such as the OPTS and IPPG.
He unfolded the details of the NUPRC Regulatory Action Plan for 2024 and the Near term unveiled on January 1, 2024 to set the direction for the industry activities.
The Regulatory Action Plan, he clarified, was not just a document, but one crafted as a signpost to the industry and stakeholders, focused on the three areas the Commission would address prevailing industry challenges and harness the opportunities ahead.
Roadmap to prosperity
The CCE described the plan as a roadmap that outlined the Commission’s vision for the upstream oil and gas industry activities to enable shared prosperity.
“It is our firm belief that this parley would allow us to x-ray the Action Plan, expand the underlying premises and secure vital insights from you (operators) that will enrich its implementation.
“We acknowledge that some of the key actions of the Plan may require clarifications and further engagements, particularly as it relates to its implications for your business models, operational architecture, and business plans. Please rest assured that the Commission has considered the possible implications and has designed the Plan with the flexibility to accommodate industry dynamics. Our goal is to enhance and facilitate a business environment that is resilient, adaptable, and aligned with global best practices. As members of OPTS and IPPG, you will continue to play pivotal roles in shaping the industry response to the evolving energy dynamics for the prosperity of our nation.
“The implementation of the Regulatory Action Plan will be a collaborative effort for our mutual benefit. To facilitate open communication, we will be establishing dedicated platforms for continuous engagement on the RAP. These platforms will provide all stakeholders, OPTS and IPPG inclusive, with opportunities to share insights, seek clarifications, and actively participate in shaping the landscape for our collective good,” he said.
Mini Bid Round
Komolafe used the occasion to announce that, in line with provisions of Section 73 of the PIA, the Commission would conclude the 2022/2023 Mini Bid Round as well as conduct a new Bid Round of 12 Blocks located in the continental shelf and deep offshore and called on investors to participate in the Bid Round process expected to commence soon.
