The Nigerian Upstream Downstream Regulatory Commission (NUPRC) has revealed that as a commission they are going to recommend for an establishment of ‘African forum of regulators’ which is not into existence yet.
Mr Gbenga Komolafe, the Commission Chief Executive of NUPRC, said this in an interview session with journalists at the ongoing 2023 Offshore Technology Conference(OTC) in Houston, Texas, U.S. on Monday
Komolafe said that the advantage was to benchmark and standardise regulatory framework across the states of African nation.
He reiterated that the Federal Government was committed to achieving carbon neutrality, ending energy poverty, and driving economic growth in the country.
He noted that the conversation around energy transition is gathering high momentum in the country and government is doing all it can to fine tune its policies and regulations to ensure it meets the global carbon neutrality.
He expressed that the Nigerian government is firmly working towards its commitment at United Nations Climate Change Conference (COP26) in Glasgow, UK, to cut its carbon emission to net zero by 2060.
“Nigeria has outlined its energy transition plan and for us as a regulatory commission, we are in line with every plan to ensure smooth transition.
“Right now, the commission has created a department to handle its decarbonization process.
“This is a way to ensure it gets carbon credit and follow all global best practices and benchmark ” he said.
On update on Nigerian Gas Flare Commercialization Program (NGFCP), Komolafe affirmed that the process was progressing well.
He said that very soon the commission will announce the names of the successful bidders .
He noted that this is coming at a time of energy crisis and transition and on the backdrop of government’s decade of gas policy.
He said that the development seeks to tame decades of gas flaring in the oil producing region and enable the federation to generate billions of dollar in investment and signature bonuses.
He said in recognition of the funding challenges facing some of the awardees of the 2020 Marginal Field Bid Round licenses, that the Commission was also planning a production based lending engagement that will help them source needed capital to commence full field development towards hitting first oil.
He expressed that this is an initiative of the commission to ease challenges in the sector.
The NUPRC boss stressed that the engagement which is planned to commence soon will be between the Commission, Petroleum Production License (PPL) Awardees, Exploration and Production (E&P) service providers and Banks.
” It is to provide platforms for strategic partnership/alliance between the awardees and the service providers for Well Re-entry and drilling services.
“The arrangement is to be offered on service fee recoverable by the service providers from production to be attached.
‘’What the commission is doing is a landmark plan to organize an E&P International Financing Road show for financiers, investment bankers, private equities, and multi-lateral institutional investors.
“The initiative is to showcase the high value quick win opportunities available to investors in the recent PPL awards, the ongoing National Gas Flare Commercialization Program, as well as the ongoing mini-bid awards, ”he added.
Komolafe said that the Commission developed a Corporate Governance Framework for upstream petroleum operations.
According to him, this is to create clarity and restore confidence in the industry , which is very important.
” Also, the framework is to enhance sustainability, environmental and corporate governance requirements and to facilitate capital attraction by investors for the optimal and efficient development of the PPLs and other assets.
He commended the Petroleum Technology Association of Nigeria (PETAN) leadership for leading a quality delegation to the 2023 OTC Conference.
He urged them to sustain the tempo and continue the development of indigenous capabilities in the oil and gas sector.
He said that PETAN is indeed doing us national proud by extending their capacities in other frontiers in Africa.
The conference has as its theme: “Energy Transition and AfCFTA: Key Reforms for Sustainable Development of the African Oil and Gas industry”.
