Buhari orders NUPRC to take over supervision of all crude oil export terminals

President Muhammadu Buhari has directed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take over the supervision of all crude oil export terminals in the country.

This might not be unconnected to the much-talked-about overlap of functions between the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with the presidency finally deciding to wade in.

The presidential directive is contained in a letter issued by President Buhari, dated May 3, 2023, with reference number SH/COS/24/A/78, to the Chief Executive Officer of NUPRC, Gbenga Komolafe and the Chief Executive Officer of NMDPRA, Farouk Ahmed.

Stakeholders in the oil and gas sector had expressed worries over the overlap of regulatory activities between the NUPRC and the NMDPRA and called for alignment between both industry regulators.

However, in the official communication, President Buhari who also doubles as the Minister for Petroleum Resources, instructed the NMDPRA to cease all actions related to monitoring activities at Nigerian crude oil export terminals.

President Buhari in the letter said the exercise of any regulatory role by the NUPRC and NMDPRA “on any existing crude oil export terminal established prior to the effective date of the PIA should cease immediately.”

He also directed immediate compliance with the resolution of the senate that “NUPRC is the sole a (sic) only regulatory entity to regulate and monitor the activities of all existing crude oil export terminals in Nigeria subsists in compliance with section 7ee of the PIA (2021).”

The letter partly reads, “The above-mentioned subject matter and, the relevant correspondence (Ref: NUPRC/1195/Vol. 1/36) refers: I write to inform you that Mr. President has directed immediate compliance with the resolution NASS/9S/R/03/934 of the Senate that NUPRC is the sole and only regulatory entity to regulate and monitor the activities of all existing crude oil export terminals in Nigeria, subsists in compliance with section 7ee of the PIA(2021).”

It added, “He has also directed that the exercise of any regulatory role by the NMDPRA on any existing crude oil export terminals established prior to the effective date of the PIA should cease immediately.”

The President also sought feedback on the implementation of the instructions, asking the Minister of State for petroleum resources to report back to him in two weeks.

It stated, “And (he has) directed the Honourable Minister of State for Petroleum Resources to ensure immediate compliance and report back within 14 days that the resolution as stipulated in (a) above is being adhered to by the NUPRC, NMDPRA, NNPCL, FMITI, industry players and relevant MDAs.”

Recall that last month, stakeholders comprising the International Oil Companies (IOCs) and Nigerian independent oil and gas producers, spoke in unison during a CEO Roundtable on energy at the recently concluded sixth Nigerian International Energy Summit (NIES) which was held in Abuja.

They argued that the misalignment between the two key agencies of the oil industry had created an overlap that had caused them operational risks and discouraged investment in the industry.

Also, during a fireside chat session at the event, NUPRC Chief Executive, Gbenga Komolafe, confirmed the position of the operators, saying there had been issues of regulatory overlaps between NUPRC and NMDPRA which had been a matter of concern for the industry.