PIA: FG scraps DPR, okays NURC board members
…This will bring about greater change — Experts
By Ariemu Ogaga & Uthman Salami
The Senate has scrapped the Department of Petroleum Resources as it confirmed the appointment of maiden board members of the Nigerian Upstream Regulatory Commission (NURC).
This development came as the Senate confirmed the nomination of members of the new agency following the consideration of report by the Senate adhoc Committee on Petroleum Resources.
The Nigerian Upstream Regulatory Commission will, in effect, automatically replace the Department of Petroleum Resources (DPR) as the commission would take over its responsibilities.
The board members confirmed by the Senate include Isa Modibbo – Chairman; Gbenga Komolafe – Chief Executive; Hassan Gambo – Executive Commissioner, Finance and Accounts; and Rose Ndong – Executive Commissioner, Exploration and Acreage Management.
On the part of the Chairman of the Committee on Petroleum Resources (Upstream), Senator Albert Akpan while making his presentation noted that the nominees had demonstrated sufficient knowledge of the workings of the petroleum industry, especially the upstream petroleum sector, as well as the economics of petroleum exploration and production.
While quoting from the newly assented petroleum law, Petroleum Industry Act (PIA), Akpan said that the appointments of the nominees satisfy the requirements of Sections 11 and 18 (1-5) of the Petroleum Industry Act, 2021.
In Senator Akpan’s view, “there are no adverse reports against the nominees as record checks and other forms of investigations by security agencies did not reveal any negative trace against them.”
He further stated that the Committee was satisfied about the qualifications, experience, suitability, competence and integrity of the nominees to assume the position of Chairman, Chief Executive and Executive Commissioners of the Nigerian Upstream Regulatory Commission.
On his part, the president of the Senate, Ahmad Lawan, said the establishment of the Nigerian Upstream Regulatory Commission would provide a foundation for the stabilisation of the petroleum industry in Nigeria.
He further stressed that the confirmation of the NURC board has automatically led to the scrapping of the Department of Petroleum Resources as the new commission will take over its responsibilities.
He said, “The Regulatory Commission has the enormous and huge responsibility of setting and establishing the Commission as provided in the Petroleum Industry Act.
“They have the unenviable responsibility of ensuring that they commit themselves and work hard to provide the solid and stable foundation for that matter, that they don’t waste any time because time is of essence.
“The implication of the approval of board members for the commission is that the Department of Petroleum Resources has ceased to exist.”
“The Petroleum Industry will go through a reform process and the process has already started.
“This Commission is one of the huge arms of those reforms that will stabilize the petroleum industry in Nigeria.
“While the Senate confirms them, we expect nothing less than commitment and patriotism on their side.
“The Senate wishes them the best and a very fruitful tenure as they take their offices.
“We expect that the other regulatory authority for downstream and midstream will also be confirmed as soon as possible, so they also start their work immediately.”
Although with lingering controversies and dogged by several accusations ranging from marginalization and shortchange, the Petroleum Industry Act (PIA) was recently signed into law by the president Muhammadu Buhari after almost 13 years since the Bill was introduced to the floor of the National Assembly.
According to PIA, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shall be responsible for the technical and commercial regulation of upstream petroleum operations.
It will ensure compliance with all applicable laws and regulations governing upstream petroleum operations in a manner to minimise waste and achieve optimal government revenues as well as promote healthy, safe, efficient and effective conduct of upstream petroleum operations.
Development expected to create knowledge gap — Expert
Oil and Gas Expert, Zakka Bala in an interview with Nigerian NewsDirect said that achieving the mission and vision of Petroleum Industry Act (PIA) is expected to bring about knowledge gap within the sector due to horizontal and vertical mobility.
He noted that whenever there is legal and structural reorganization of this manner, such changes are expected.
According to him, “It is our hopes and prayers that the changes will be for the greater good of the Country.”
He recommended that, there is need for Federal Government to brush-up the staff’s competence in alignment with the mission and vision of post PIA.
To this end, Zakka suggested that FG should engage competence consultants who will provide required trainings for staff to mitigate against possible knowledge gap.
