NUPRC

Lagos, Feb. 16, 2024: The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is set to relocate some of its units to Lagos.

This is contained in a memo signed by Dr Kelechi Ofoegbu, on behalf of the commission, and dated Wednesday, Feb. 14.

The commission said the decision was to enhance its service delivery, reduce operational costs, and make adequate utilisation of its assets in Lagos.

“In line with our objectives of improving organisational efficiency, driving industry growth, and managing office accommodation in Abuja, we are exploring the possibility of relocating certain units to Lagos.

“This initiative is driven by the need to enhance our service delivery, reduce operational costs, and make adequate utilization of our assets in Lagos.

“Consequently, we are requesting that each department identify and provide a list of units that can operate independently with minimal supervision.

“Submissions on the above are expected on or before the close of business on Friday, Feb. 23,  2024.

“This is submitted for your further necessary action.”

The development comes on the heels of the recent relocation of the Federal Airport Authority of Nigeria (FAAN) headquarters to Lagos.

 President Bola Tinubu has approved the appointment of three Executive Commissioners to serve in the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The president also approved the redeployment of one current Executive Commissioner, pending their confirmation by the Nigerian Senate:

(1) Mr. Bashir Indabawa — NW — Executive Commissioner, Exploration & Acreage Management

(2) Dr. Kelechi Ofoegbu — SE — Executive Commissioner, Corporate Services & Administration (Redeployed)

(3) Mr. Enorense Amadasu — SS — Executive Commissioner, Development & Production

(4) Mr. Babajide Fasina — SW — Executive Commissioner, Economic Regulation & Strategic Planning

Mr Ajuri Ngelale, Special Adviser to the President (Media & Publicity) said on Monday that the the President approved the reshuffling and replacement based on his deeply informed assessment of all factors concerning the sector.

H said that the assessment and action was to established a regulatory framework and culture that comprehensively disincentivizes errant behaviour and incentivizes diligence and rules-based business practice across the industry.

Lagos, Oct. 6, 2023: The Nigerian Upstream Regulatory Commission (NUPRC) has introduced Advanced Cargo Declaration regime in upstream petroleum operations to arrest oil theft and curtail export of stolen crude oil.

Mr Gbenga Komolafe, the Commission Chief Executive of NUPRC, disclosed this latest intervention at the annual International Stategic Conference 2023, organised by the Association of Energy Correspondents of Nigeria (NAEC) on Thursday in Lagos.

The theme of the conference is ‘‘ Nigeria’s Energy Transition: Enhancing Investment Opportunities and Addressing Challenges in the Oil and Gas Sector.

Komolafe, represented by Mr Abel Nsa, Head of the National Oil and Gas Excellence Centre (NOGEC) Department, NUPRC, said the initiative aims at ensuring that crude oil and gas cargoes exported from Nigeria have a unique identifier that confirms all documentation as regards the exported consignment.

‘‘This implies that any cargo without the unique identifier becomes tagged as illegitimate.

“This, by no small measure, enhances transparency in our export operations.

He hinted further that NUPRC had deployed key resources to the Special Investigative Unit of the Commission to forestall any cases of sharp practices by operators in the sector.

‘‘Over the next few months, we are positive that we shall record a marked increase in our national oil and gas production volumes.

“Quick-win strategies such as our aggressive drive to reactivate shut-in and declining wells will boost production prior to the onset of more long-term initiatives like operations from the new Marginal Field awardees.

Also, the Commission is working alongside security operatives to bring a halt to the menace of crude oil theft, which has over the years contributed to a huge loss of production,” he said.

The CCE added that the agency had begun the implementation of the Drill or Drop Provision with a comprehensive review of assets which had been undeveloped by operators.

Such assets, he said, would be placed in a basket and then offered to willing and qualified investors with the capacity to explore, develop and produce the block(s) or field(s) in a timely, efficient, safe, and environmentally friendly manner.

He stated that the ongoing mini bid round for seven Deep Offshore Petroleum Prospecting Licences (PPLs) would boost the nation’s reserves as well as bring about anticipated benefits to the nation and other stakeholders.

On reduction in unit cost per barrel and revenue, he explained that the Commission is committed to ensuring a significant reduction in the cost of doing business in the upstream petroleum industry.

‘‘Following an in-depth comparative analysis between the Unit Operating Cost (UOC) in Nigeria and those obtainable in other climes.

“We have commenced the development of cost studies and benchmarks to ensure an improvement in the cost efficiency of our upstream petroleum operations, in accordance with Section 8 of the Petroleum Industry Act 2021.

The NUPRC has also began a review of all Crude Handling Agreements (CHA) with a view to entrenching openness and competitiveness, thereby reducing the cost of production while increasing government revenue from the sector

It is noteworthy that in the year 2022, using the strategies listed above, the Commission outperformed its revenue collection target by 18.3 per cent,’’

Komolafe maintained that the Commission had stepped up efforts toward transparency in the sector and that transparency in hydrocarbon accounting was essential in ensuring maximum value derivation by the government and stakeholders.

According to him, transparency is essential to ensuring security of investments made by our financial partners.

Abuja, Sept. 8, 2023: Mr. Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), says he will ensure the completion of ongoing construction of the N68.5 billion Nigerian Upstream Petroleum Regulatory Commission (NUPRC) `BARREL’ building without hitches.

The Minister made this known on Thursday while meeting with the management and staff of the NUPRC at its temporary headquarters in Abuja.

The meeting preceded Lokpobiri’s visit to the proposed NUPRC’s Headquarters complex site, called “THE BARREL”, located in the Central Business District, Abuja.

Lokpobiri said he would intervene to resolve challenges hampering the building construction, adding that he had already discussed with the Central Bank of Nigeria (CBN) on how to address its forex challenges, hence there should be a follow up.

“The commission is so important that you need to work in the best condition. To be able to optimise productivity; you need to be in the best environment.

“I am very sad that you are still in the temporary site. The survival of the oil industry depends on what you do; That is why I am interested in ensuring that we complete the building.

“The challenges you have will be mine. Yesterday, I was with the CBN Acting Governor, you need to follow up so that your income that you earn in dollars will be in the domiciliary account for you to expend, instead of converting to Naira,’’ he said.

He expressed satisfaction with the success being recorded by the commission by surpassing its financial projection, the steady progress and completion level recorded at the construction of its permanent site.

“I have been briefed by the contractor handling the project and they raised few concerns. We are going to work towards addressing those concerns,’’ he added.

Mr Gbenga Komolafe, Commission Chief Executive (CCE) who received the Minister, said its regulatory focus was to increase the oil and gas reserve in the nation which stood at 37 billion barrel of oil and 208 TCF of gas.

“We are focused on increasing that through our regulatory approach and of course stepping up the transparency of hydrocarbon account which is very dear to our hearts. So we are pursuing that through strategies and regulations we are putting in place.

“There is a provision in the Petroleum Industry Act (PIA) that ensures the bye-in of the host community for inclusiveness in a manner that will encourage peaceful operation of the oil companies

“This is because without peace in the host community we cannot attain the set production target and revenue target for the nation. The commission is doing everything possible to step up effective implementation of that provision of PIA,’’ he said.

Komolafe said in view of this, it had ensured setting up of 82 host community development trust to serve as platform for implementation of that provision in the PIA to ensure peace.

He said it had made concerted effort to ensure reduction in the unit cost per barrel of oil targeted at ensuring that Nigerian upstream industry remained attractive to investors.

“We are equally in alignment with the global footprint in energy transition, ensuring decarbonisation in alignment with the nation’s net zero carbon emission commitment,’’ he added.

According to him, the commission, with a dedicated workforce of 933 staff nationwide, is being operated from five regional offices and four field offices.

In terms of revenue generation, he stated that as at July, it has already surpassed 50 per cent of its revenue generation, adding that since the last three years, it had remained so due to the hard work of the entire workforce.

Speaking on the ‘BARREL’ project, the CCE said the project (11th floor completion level) which was executed in 2021 and to be completed on Aug. 29, 2024, had its mode of payment through 65 per cent forex and 35 per cent local component.

Dr Taofik Popoola, Manager, Principal Artec Limited and the building’s design consultant, while speaking on the work status, said its installation and mobilisation recorded 100 percent, planning and design, 95 per cent, construction 96 per cent and procurement 48 per cent.

He listed challenges facing the construction to include inflation, COVID 19 pandemic effect, increase in prices of material, Naira devaluation (per dollar/N978 currently) and the Russian-Ukraine crisis.

“Naira to dollar was N385 at the time the contract was signed, it increased to N750 and now at N978.

“All these are unfortunately having negative effects on the procurement process, cost of project and time scheduling.’’ he said.

Mr Luis Sousa, Project manager, Julius Berger Nigeria Plc, further explained that due to COVID-19 and the Russia-Ukraine Crises, supply chain of some materials was affected especially in the area of steel supply because Ukraine is the major producer of steel components.

Abuja, Aug. 3, 2023: The Federal Ministry of Petroleum Resources on Thursday, intervened in the lingering crises between the management of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and its workers.

The workers have since Tuesday been protesting alleged poor welfare and working conditions and called for the sack of the Chief Executive, Mr Gbenga Komolafe, over alleged financial mismanagement.

During the continued protest at the commission Complex at Idris Ibrahim Crescent, in Jabi, Abuja on Thursday, the protesting workers called for a forensic audit of the finances of the commission.

Addressing the workers, Amb. Gabriel Aduda, Permanent Secretary in the ministry appealed for dialogue to find a lasting solution to the crisis, which he described as counterproductive to nations most important industries.

He noted that the workers were not wrong to show their grievance, adding however, that not much would be achieved without coming to the discussion table.

“We totally agreed that your concerns are very genuine. You have tabled them, and you have listed them.

“We are also aware that the management has taken the concerns very seriously and some of them are already being addressed.

“We want to appreciate all of you, and we are not taking any of your concerns that you have raised as a joke.

“In fact, every single one of them will be addressed, especially where there is evidence and proof,” he said.

He offered to chair a meeting with the union leaders and the management of the commission.

According to him, the discussion will enable the parties to come out with resolutions and implantable plans to be able to address every single issue that has been raised.

“Those that can be handled immediately would be handled immediately and those that will need time we will agree on the timing.

Responding, Mr Kabiru Dan’azumi, Deputy President Worldwide, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASAN), said that the union has tried to resolve the issue amicably without success.

“We met with the management in private and in secret. We discussed the issues as a family matter, but Komolafe has failed us,” he said.

Also speaking, the National Treasurer, PENGASSAN, Mr David Owan, said that the issue has been ongoing for the last two years.

Owan thanked the permanent secretary for intervening to resolve the fracas but insisted that the chief executive of the commission must go.

He, however, said that the branch would call a congress, discuss the matter, and seek a directive from the national executive for the union and get back to him on the modalities for the meeting.

On his part, the Branch Chairman, Mr Okechukwu Anya, said that Komolafe must also apologise for calling the workers thieves before they would consider sitting at the same table with him on the matter.

Some of the issues bothers on inadequate staff medicals, poor working tools and office accommodation, staff harassment and intimidation.

Other issues, according to the workers, are controversial metering plans, abuse of processes, procurement of a private jet, and over inflated contracts among others.

However, Komolafe in a statement on Wednesday, claimed that the management has fulfilled almost all the claims and demands of the workers, while stressing that some of the allegations were not true.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has underscored the need for accurate crude oil and natural gas production and revenue generation in line with the Petroleum Industry Act (PIA) 2021.

Mr Gbenga Komolafe, Commission Chief Executive, NUPRC, made this known on Thursday in Abuja at the opening of its Two-Day Workshop on Production Determination, Accounting and Reconciliation for Crude Oil, Natural Gas and Condensate.

Komolafe,  represented by Mr Erorense Amadasu,  Deputy Director,  Development and Production said the workshop was aimed at sensitising the oil stakeholders on the statutory requirements on oil production.

He said the workshop would discuss modalities and NUPRC’s requirements for production verification in line with the provisions of the PIA  2021, then obtain industry’s feedback/input on NUPRC’s requirements.

He emphasised on the importance of accurate crude production across the hydrocarbon value chain for optimal revenue generation.

In an overview,  Mr Idris Abdurahman,  Deputy Manager,  Crude Oil Accounting,  Crude Oil Terminal Operation dwelt on NUPRC’s statutory mandate and PIA’s provisions.

Abdurahman explained that the upstream sector as defined by Section 318 of the PIA 2021 covered exploration, production and operations of crude oil and natural gas.

“Our major focus is on business continuity and low cost of production, accurate measurement and timely payment of royalty revenue security to government.

“We also focus on uninterrupted supply of crude oil and natural gas to domestic market for energy security of the nation, including safety,  health and environment,” he said.

He said the PIA 2021 also mandated the NUPRC to ensure end-to-end production accounting and certification from Well head to terminal.

He further said that it allocated petroleum production quotes for the purpose of curtailing export of petroleum in conjunction with NNPC Limited  pursuant to regulation.

He said section 241 of the PIA provided that there shall be levy upon the profits of any company engaged in upstream petroleum operations in relation to crude oil, a Tax to be known as Hydrocarbon Tax which shall be charged and assessed.

“Section 262(1) provides that subject to this Act in relation to any accounting period, all revenue of a company for that period shall be the value of any chargeable oil adjusted to the measurement points.

“This shall be based on the proceeds of chargeable oil sold by the company, and value of all chargeable oil disposed by the company.