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From Adewale Sanyaolu, Houston Texas
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has reiterated its commitment to ending energy poverty and achieving carbon neutrality for economic growth.
NUPRC Commission Chief Executive (CCE), Mr. Gbenga Komolafe, disclosed this during an interview with energy editors at the ongoing Oil Technology Conference which entered its day two in Houston, Texas yesterday with the theme ‘‘Energy Transition and AfCFTA: Key Reforms for Sustainable Development of the African Oil and Gas Industry’’.
This was even as he hinted that talks are at advanced stages for the establishment of an African forum of regulators for the oil and gas industry.
He explained that the advantage of the African regulators forum will be aimed at benchmarking and standardising regulatory framework across Africa.
He noted that the conversation around energy transition is gathering high momentum in the country and the federal government is doing all it can to fine tune its policies and regulation to ensure it meets the global carbon neutrality.
He added that the Nigerian government is firmly working towards its commitment at United Nations Climate Change Conference, COP26 in Glasgow, UK, to cut its carbon emission to net zero by 2060. ‘Nigeria has outlined its energy transition plan and for us as a regulatory commission, we are in line with every plan to ensure smooth transition. Right now, the commission has created a department to handle its decarbonization process. This is a way to ensure it gets carbon credit and follow all global best practices and benchmark,’’.
On update on Nigerian Gas Flare Commercialisation Programme (NGFCP), Komolafe affirmed that the process is progressing well. He said that very soon the commission will announce the names of the successful bidders .
He noted that this is coming at a time of energy crisis and transition and on the backdrop of government’s decade of gas policy, the development seeks to tame decades of gas flaring in the oil producing region and enable the federation to generate billions of dollar in investment and signature bonuses.
He said in recognition of the funding challenges facing some of the awardees of the 2020 Marginal Field Bid Round licences, the Commission is also planning a production based lending engagement that will help them source needed capital to commence full field development towards hitting first oil.
He expressed that this is an initiative of the commission to ease challenges in the sector, stressing that the engagement which is planned to commence soon will be between the Commission, Petroleum Production Licence (PPL) Awardees, Exploration and Production (E&P) service providers and Banks.
‘‘It is to provide platforms for strategic partnership/alliance between the awardees and the service providers for well re-entry and drilling services. The arrangement is to be offered on service fee recoverable by the service providers from production to be attached.
What the commission is doing is a landmark plan to organise an E&P International Financing Road show for financiers, investment bankers, private equities, and multi-lateral institutional investors.
The initiative is to showcase the high value quick win opportunities available to investors in the recent PPL awards, the on-going National Gas Flare Commercialisation Programme, as well as the on-going Mini-bid awards,’’.
Also, he said the Commission has developed a Corporate Governance Framework for upstream petroleum operations. This, he said, is to create clarity and restore confidence in the industry which is very important. He added that the framework is to enhance sustainability, environmental and corporate governance requirements and to facilitate capital attraction by investors for the optimal and efficient development of the PPLs and other assets.
He commended the Petroleum Technology Association of Nigeria (PETAN) leadership for leading a quality delegation to the 2023 OTC Conference.
He urged them to sustain the tempo and continue the development of indigenous capabilities in the oil and gas sector.
