Energy

NUPRC not leaving Abuja as erroneously speculated

Published

2 months ago

February 21, 2024

By Ibrahim Musa

With clear mandates – ensuring compliance with petroleum laws, regulations and guidelines, monitoring of operations at drilling sites, producing wells, production platforms and flowstations, crude oil export terminals, and all pipelines carrying crude oil, and natural gas, supervising operations being carried out under licenses and leases, monitoring operations to ensure that they are in line with national goals and aspirations – the Nigerian Upstream Regulatory Commission, NUPRC, occupies a very influential position in Nigeria’s oil and gas industry.

The NUPRC also has the mandate to monitor operations to ensure that they are in line with national goals and aspirations, including those relating to Natural Gas Flare elimination & monetization, Domestic Gas Delivery Obligations and Domestic crude oil supply obligations and ensures that Health Safety& Environmental regulations conform to national and international best oil field practice.

The agency further maintains records on upstream petroleum operations, particularly on matters relating to petroleum reserves, production/exports, licenses and leases; advice Government and relevant Government agencies on technical matters and public policies while processing upstream petroleum–related applications for leases, licenses and permits as well as ensure timely and accurate payments of Rents, Royalties and other revenues due to the government from upstream petroleum operations while administering the National Data Repository (NDR).

Consequently, some persons, including politicians and analysts, who are aware of its various roles, have come to perceive the actions of NUPRC more from the realm of politics than economics. They keep a close watch on the activities in the agency and would complain about almost every development that does not fit into their pre-conceived idealism, instead of embracing realism based on purely economic considerations.

Take the latest efforts to move some personnel, especially field officers to Lagos, where many oil and gas companies have offices for example. The truth is that with the implementation of the Petroleum Industry Act, a comprehensive legislation, targeted at achieving restructuring, repositioning, increased productivity and transparency and accountability, the NUPRC inherited many personnel and its current building in Abuja from the defunct Department of Petroleum Resources, DPR. Sadly, many personnel do not have offices but work with their laptops from unsuitable locations, including conference rooms and corridors.

Meanwhile, NUPRC still bears the financial and other costs of taking them frequently to Lagos, Warri and Port Harcourt to carry out their official duties. After due consideration and in line with President Bola Tinubu’s commitment to cut costs, eliminate wastages and enhance service delivery, the Engr. Gbenga Komolafe-led NUPRC started consulting with key stakeholders, especially the labour unions. The consultation culminated in the taking of the decision, targeted at reducing pressure on accommodation in Abuja, maximizing the use of the Lagos-based office, reducing operational costs, improving organizational efficiency and enhancing industry growth.

Sadly, the decision has been unduly politicized and misconstrued to mean leaving Abuja. This constitutes a distraction to the NUPRC under the leadership of Engr. Komolafe that means so well for the industry and Nigeria as illustrated in the bold steps taken to make a positive impact in the past few years. Already, NUPRC has developed regulations, giving meaning and intent to the PIA, to ensure that all bottlenecks associated with regulatory processes are eliminated, to entrench seamless upstream petroleum operations. The gazetted regulations include: Petroleum Licensing Round Regulations 2022, Petroleum Royalty Regulations 2022, Conversion and Renewal (Licences and Lease), Nigeria Upstream Petroleum Host Communities Development Regulations 2022, Domestic Gas Delivery Obligations Regulations 2022, Nigeria Upstream Petroleum Measurement Regulations 2023, Production Curtailment and Domestic Crude supply Obligation Regulations, 2023, Frontier Basins Exploration Fund Administration Regulations, 2023, Nigeria Upstream Decommissioning and Abandonment Regulations 2023, Significant Crude Oil and Gas Discovery Regulations, 2023, Gas Flaring, Venting and Methane Emission (Prevention of Waste and Pollution) Regulations, 2023 and Nigeria Upstream Petroleum Unitization Regulations, 2023.

Also, the 14 draft regulations awaiting gazetting include Upstream Petroleum Fees and Rent Regulations, Acreage Management Drilling and Production Regulations, Upstream Environmental Remediation Fund Regulations, Upstream Petroleum Safety Regulations, Upstream Petroleum Environmental Regulations, Upstream Petroleum Measurement Regulations, Advance Cargo Declaration Regulations, Draft Upstream Commercial Operations Regulations, Draft upstream Petroleum Code of Conduct & Compliance Regulations, Draft Upstream Petroleum Development Contract Administration Regulations, Draft Upstream Revocation of licences and Lease Regulations, Draft Upstream Petroleum Assignment of Interest Regulations, Draft Nigerian upstream Petroleum (Administrative Harmonisation) Regulations and Draft Amendment to the Nigerian Upstream Petroleum Host Communities Development Regulations 2022.

The Commission has also held several Stakeholder Engagements on the Commission’s Draft Regulatory Framework for Energy Transition, Decarbonisation and Carbon Monetisation and incorporated the inputs arising from the engagements into the regulatory framework, which will not only govern the activities of the newly established Energy Transition and Carbon Monetisation Division of the Commission but those of the entire industry in considering Energy Transition in oil and gas field development.

Engr. Komolafe has attracted many investors expected to boost investment in the nation. The reserves report as of 1st January 2022 put the nation’s oil and condensate reserves status at 37.046 billion barrels, with a life index of 60 years, representing an increase of 0.37% compared to 36.910 billion barrels as of 1st January 2021. On the other hand, the nation’s reserves status stood at 208.62 (trillion cubic feet) TCF with a life index of 80 years, representing an increase of 1.01% compared to 206.53 TCF as of 1st January 2021.

He has taken deliberate steps to drive the Decade of Gas programme declared by the Federal Government through more aggressive development of the Nation’s huge gas resources, enhanced exploration activities, development of utilization schemes leading to gas reserves growth, increased gas production, maturation of domestic and export gas markets, in addition to gas flare elimination and commercialisation through the Nigeria Gas Flare Commercialization Program (NGFCP). Engr. Komolafe has also assisted many companies/projects to hasten development and achieve their first oil production. Some of the fields include: Anyala field (First E&P), Ikike (Total), Efe field (Newcross), Utapate, (NEPL), and Akubo Field (SEEPCo).

He contributed immensely to the funding of the Federation’s activities. In the year 2021, the total revenue generated was N2.9 trillion which signified a 44.82 per cent increase in revenue generated as compared to the 2020 figure which stood at N2.0 trillion. On the other hand, the total revenue generated in the year 2022 was N3.781 trillion, indicating an increase of 30.38 per cent.

In 2024, plans are underway to hold the licensing round in line with Section 73 of the nation’s PIA. The Engr. Komolafe-led Commission will optimise the functionality of automation systems by enhancing the efficiency of existing optimising tools and the streamlined deployment of new ones while collaborating with relevant government entities to grow oil and gas production in the best interest of all stakeholders, including investors and Nigeria.

This and other plans are targeted at increasing oil and gas production and extending foreign exchange generation for the government and other stakeholders. As Engr. Komolafe disclosed at the just-concluded Petroleum Technology Association of Nigeria (PETAN) Sub-Saharan Africa International Petroleum Exhibition and Conference in Lagos, that the operations of the agency will continue to be driven by modern technology, improved transparency in hydrocarbon measurement and accounting and collaborative work programme administration with the exploration & production companies.

Indeed, the planned movement of field officers to Lagos should be endorsed and supported by everyone as it promises to not only bring NUPRC much closer to the oil and gas companies and other stakeholders but also position the agency to operate more efficiently while minimizing cost and maximizing returns to the government and nation.

. Ibrahim Musa is a Lagos-based Energy Analyst

Energy

Alake unveils gender strategy for mining, steel sector

Published

15 hours ago

May 2, 2024

NewsDirect

The Minister of Solid Minerals Development, Dr Dele Alake, has unveiled a document for Women in Mining in Nigeria (WIMIN) strategy document.

Speaking at the event, he described the strategy as a significant mile stone in the sector.

He said that the move was a demonstration of the commitment of the Ministry of Solid Minerals Development (MSMD)‘ and Ministry of Steel Development in fostering diversity.

He said that the strategy is aimed at promoting gender equality and women‘s empowerment, adding that its focused on driving productivity for the nations‘ sustainable development.

“It also focuses on improving the opportunities for women to benefit from both sectors sustainably in policy, regulatory, operational, and commercial (large scale, medium scale, small scale, and artisanal levels), and value and supply chain roles.

“This strategy is not just a document but a call to action and a blueprint for all stakeholders to create a more inclusive and gender-balanced mining and steel sector.

“It provides a guideline and framework to guide both ministries, their agencies, and stakeholders to integrate gender equality and women’s empowerment priorities in their policies, programmes, and initiatives,” he said.

He acknowledged the indispensable contributions of women to the success and sustainability of the mining sector, saying that their talents, expertise, and perspectives are critical to the success and growth of the industry.

According to him, Nigeria is not immune from the biases perpetuated against women in these two sectors.

In addressing the situation, he said that the Federal Government has prioritised gender equity and female participation in its “Roadmap for the Growth and Development of the Nigerian Mining Industry.”

He said as part of the efforts of MSMD and Ministry of Steel Development to implement the roadmap, the Mineral Sector Support for Economic Diversification (MinDiver) engaged a consultancy to develop the gender strategy.

He said that to achieve the objectives of the strategy, its institutional capacity would be strengthened for effective gender mainstreaming.

He added that that women’s participation in leadership and governance roles within the mining sector and communities would be increased.

“Promoting women’s economic empowerment and rights and eliminating all barriers (structural and systemic) that hinder women’s meaningful participation, access and control over mining resources and benefits,” he said.

The Minister added that they were committed to building partnerships across a wide range of stakeholders in achieving the vision of the strategy.

He said that the WIMIN strategy was firmly rooted in the principles of equality, diversity, and empowerment, and a call to action for stakeholders mobilisation toward a more inclusive and gender-balanced industry.

Earlier in her remarks, the National President of WIMIN, Dr Janet Adeyemi, described the launch of the strategy as an opportunity to galvanise support and implement actions to address the entrenched gender disparities within the mining and steel sectors.

Represented by the National Secretary, Mrs Emily Ofodile, she said that women within these industries continue to encounter multifaceted barriers that hinder their full participation and advancement.

On her part, the Permanent Secretary of MSMD, Dr Mary Ogbe, urged, women to be change agents at all levels, and urged all organisations to have gender focal persons to help in coordinating all related matters.

Energy

Tree4Life Project: NEPL/Seplat JV, Edo sign reforestation agreement

Published

15 hours ago

May 2, 2024

NewsDirect

The NNPC Exploration and Production Ltd/Seplat Energy Joint Venture and the Edo State Government have signed an agreement that will see the state government allocate 6,000 hectares of land from its protected forest reserves to enable a large-scale tree planting initiative by Seplat Energy Plc.

This is in furtherance to the Seplat Tree4Life Initiative and the Edo State Government’s identification of the need to increase forest cover and carbon sequestration efforts within the region.

Seplat Energy has been selected as the partner to implement this reforestation project, which aims to plant millions of indigenous trees on the allocated land over the next five (5) years. This project represents a significant investment in environmental conservation and sustainable development for the state.

Speaking at the agreement signing ceremony, which happened in Edo State Government House, the Managing Director, Seplat West Limited, Seplat Energy, Ayodele Olatunde, said the partnership will contribute in the global efforts around mitigating the effects of climate change, whilst providing economic, social, health and other environmental benefits to the region.

“This will stir more advocacy as far as climate change is concerned and put the Edo State Government with the Seplat JV on the map as change agents. The partnership is well aligned with our Tree4Life Initiative and has the capacity to boost our economy and the environment; advance our soil health and drive carbon capture; preserve our ecosystem; enhance biodiversity; create jobs; conserve our forests; and promote physical and mental wellbeing of our people,” Olatunde said.

The Commissioner for Environment & Sustainability, Edo State, Joshua Omokhodion, said the synergy between Edo State and the Seplat JV is a huge attempt at mitigating the impacts of climate change in Nigeria.

“Beyond the economics of this move, the science of it is very important to us because it is an attempt to deliberately create an ambience that will be conducive for humans and other creatures here.”

The Director, External Affairs & Social Performance, Seplat Energy, Chioma Afe, in her address, thanked the Edo State Government for partnering with the NEPL/Seplat JV on this sustainable journey of reforestation.

She said, “This will drive forward our shared goals of environmental conservation and sustainable land use.”

“These 6,000 hectares of land being allocated today, we believe, will provide a major boost to efforts at increasing tree cover and also to sequester carbon in our region. We believe also that this will not only tackle climate change, but will promote the local economy as well as local wildlife. The agreement demonstrates the NEPL/Seplat JV strong commitment to supporting impactful environmental projects,” Afe explained.

The Managing Director, NEPL, Nicolas Foucart, represented by Mr. Uzoma Ezulu, DM Operations Management Seplat, NEPL, said the partnership between the state government and NEPL/Seplat JV is a laudable response to the global warming crisis.

“The world is turning around for the worst; human activities in the name of development have done more harm than good to the environment. The Tree4Life project, therefore, is a conservative effort for all of us,” he said. Teasoo Consulting Limited was also among the facilitators of the agreement signing ceremony,” Nicolas said.

Energy

Fuel queues will end soon — Reps assure Nigerians

Published

15 hours ago

May 2, 2024

NewsDirect

The House of Representatives, has reassured that the long queues at filling stations in the country, will soon fizzle out soon.

Chairman, Petroleum Downstream, Rep. Ikenga Ugochinyere, said this at a joint news conference in Abuja on Wednesday.

“We hereby express our concerns over the temporary presence of fuel queues in petrol stations across the country.

“However, we are convinced that this is temporary based on our investigation, and in a couple of days, we shall get over it,” he said.

Flanked by Rep. Henry Okojie, the Chairman, Petroleum Midstream, Ugochinyere said that investigations had revealed that the scarcity was artificial.

“We have discovered that there is availability of petrol products. We have it on good authority that we have in our storage facilities at least, about 1.5 billion liters of petrol,” he said.

He said that 1.5 billion litres can last for 30 days.

“We have gotten assurances from the regulators in the distribution value chain that these bottlenecks have been cleared. In the course of this public holiday, more grounds will be covered.

“From our findings, the issues that necessitated the disruptions that led to the appearance of fuel queues in petrol stations have been cleared.

“They said that it would take a few more days for things to return to normalcy, while calling on Nigerians not to panic over this development.

“We have gotten assurances from the regulators and the unions that these challenges will be cleared in a few days,” he said.

Ugochinyere added, “It will require more time, like two to three days, for products to be distributed to all stations nationwide.

“As a committee that is charged with downstream and midstream oversight, we have been monitoring this development.”