The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has pointed out that there are still many opportunities to be tapped in the country’s oil and gas sector despite the current global energy transition towards net zero carbon emissions.
The NUPRC said it would drive the exploitation of these opportunities by addressing key issues that would facilitate the growth, stability and sustainability of the country’s oil and gas industry by working with stakeholders to enhance gains from recent reforms in the industry and ensuring a change in the regulatory landscape.
These were disclosed by NUPRC Director General, Mr. Gbenga Komolafe, in a presentation he made during NUPRC’s Strategic Dialogue with Industry titled: “NUPRC’s Fundamental Change in Times of Transition”.
Komolafe also said the commission has set a target to increase Nigeria’s oil reserves to 40 billion barrels by 2030 and is set to increase Nigeria’s gas reserves to 210 TCF from by 2030 and to increase the country’s oil and gas production capacity to three million barrels per day. production capacity to 12 Bscf within the same period of 2030.
He also said that the shift from fossil fuels to greener energies would have implications for developing countries, which would struggle to keep up with the trend even with abundant resources while already developed countries would have a good length of time. advance.
He said, “Developing countries will struggle to develop even with abundant resources. All nations are jointly held responsible for the environmental impact of fossil fuels. Oil-producing countries with proper economic models can escape many impacts, but oil-producing countries without proper economic models can be hit the hardest despite having huge fossil resources.
“Furthermore, reactive nations without the proper economic model can make a change even in the short time available.”
The NUPRC Chief Executive also said that the Petroleum Industry Act 2021 (PIA) marks a turning point in the country’s oil and gas landscape.
Komolafe clarified that the commission’s roles under the new dispensation in the Nigerian oil and gas industry include being the regulatory agency responsible for the technical and commercial regulation of upstream petroleum operations; and the administration of petroleum laws and statutes as well as the implementation of upstream policies on oil and gas activities in Nigeria.
The commission’s roles, he said, covered “supervising and monitoring all upstream oil industry operations carried out under licenses and leases in the country”, as well as “promoting an enabling environment for investment in upstream oil operations”.
He said the NUPRC would also “ensure compliance with a commercial and technical legal framework to ensure efficiency, transparency and fairness.”
This “would also optimize the government’s withdrawals from hydrocarbon resources; administer and manage oil and gas acreage and concessions in Nigeria” and lead the “conservation and sustainable development of the country’s hydrocarbon resources; maintain a data bank on the Nigerian petroleum industry,” he said.
Komolafe said the commission would focus on developing regulations, the environmental remediation fund; land development plan; reserves and production growth; accelerated investments in reserves; asset management for global competitiveness and cost-per-barrel profits and capital efficiency aimed at delivering growth and reducing costs.
The commission would also focus on “facilities engineering initiatives; risk reduction of border basins, grid system for areas, funds for dismantling and abandonment; host community development trust; gas development and monetization; the impact of COP26 and our response as well as the fight against crude oil theft,” he said.