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As Nigerians continue to bask in the euphoria of the fruitful one year anniversary of the current administration, Rising-Up for a United Nigeria (RUN) in collaboration with Coalition of Civil Society Groups for National Unity converged in Abuja on Monday to congratulate Mr. President and honour the Chief Executive Officer (CEO) of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Engr. Gbenga Komolafe.
Addressing a press conference in Abuja, Amb. Solomon Adodo, Convener of RUN and Comrade Igwe Ude-Umanta, National Coordinator, Guardians of Democracy and Development Initiative on behalf of the coalition described the NUPRC boss as a key partner in the Renewed Hope Agenda who has strategically repositioned his agency towards the the realization of Mr. President’s economy recovery efforts by working tirelessly, noiselessly and profoundly.
The Coalition averred that, “for Mr. President to have come this far, especially on the economic front, certain key agencies and officers have worked tirelessly, noiselessly and profoundly to deliver creditably on their mandate. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is foremost among those agencies. The reinvigorated support and clear mandate give to the Commission has led to improvements in operations with significant increase in crude oil output and earnings.
“It is in recognition of the enormous achievements of NUPRC that its prolific Chief Executive Officer, Engr. Gbenga KOMOLAFE was bestowed with the prestigious Sun Public Service Award this year amongst several other recognitions and commendations both locally and internationally. This is stark departure from the corruption and rot that marred the smooth operations and dearth of investments in the petroleum sector unlike what’s happening right now”.
The Coalition highlighted some of the major achievements recorded by the Commission in the last one year aimed at fostering improvement in industry standards and operational efficiency, a development that has led to stability in the oil and gas business environment and attractive massive productive partnerships.
“There has been a significant reduction in crude oil theft by enhancing cargo declaration and upstream measurement processes after a forensic audit was carried out to determine the extent and loopholes in the system. This has resulted in a major boost to Nigeria’s crude oil production from below one million barrels per day to above 1.6 million barrels per day. As at press time, Nigeria’s oil production and output is at an all-time high and the environment, most conducive for business. This has led to a reversal in oil investment decline and loss of dollar revenue.
“There has also been a first if it’s kind reactivation of inactive oil wells in Nigeria which has unlocked 700 thousand barrels of oil per day. Already, a template has been developed for Domestic Crude Oil Supply Obligation (DCSO) to ensure sufficient and uninterrupted feedstock to all local refineries to serve Nigeria’s domestic petroleum needs.
“In the same vein,all existing crude handling agreements have undergone a comprehensive review aimed at bolstering transparency and fostering competitiveness in the process of crude evacuation. This initiative is already beginning to yield a reduction in both capital and operational expenditure.
“As a significant transparency milestone in oil and gas revenue optimisation, the Commission has effectively transitioned the management of Fiscal Oil Prices (FOP) differentials from NNPCL to NUPRC. It began publishing market-reflective Fiscal Oil Prices (FOP) differentials on NUPRC’s website in line with the transparency objectives of the Petroleum Industry Act 2021”, the statement added.
In the area of growth of reserves, the Coalition lauded the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for “issuing the first ever Petroleum Exploration License (PEL) for a geophysical survey project aimed at acquiring approximately 56,000 square kilometres of 3D seismic and gravity data offshore in the Niger Delta. A feat which will place Nigeria in the front lines in the comity of OPEC nations.
“NUPRC has also advanced the mini bid licensing round for seven deep offshore Petroleum Prospecting Licenses (PPLs) to boost national reserves. This effort has resulted in an increase of the country’s crude oil reserves to 37.50 billion barrels of oil and 209.26 trillion cubic feet of gas, reflecting a 1.43% and 0.21% increase, respectively, compared to 2023 figures.
“The Commission with proper foresight has also engaged Exploration & Production companies to unlock approximately 57 trillion cubic feet of uncommitted or non-monetized gas reserves with the annual Domestic Gas Delivery Obligation (DGDO) issued to all leases to drive growth in gas production”.
The Coalition described as satisfactory, Nigeria’s commitment to the elimination of gas flaring under the impactful leadership of Engr. Komolafe’s, adding that, “under the Nigerian Gas Flare Commercialization Program (NGCP), about forty-nine flare sites have been Commercialized, demonstrating commitment to environmental sustainability and resource optimization. This initiative has accounted for the monetisation of approximately 50% of gas currently being flared towards achieving the Net Zero target”.
The Coalition also expressed satisfaction with the proactive steps taken by NUPRC to ensure seamless operations by expediting the execution of the Host Community Development Regulation and incorporating the Host Communities Development Trust Fund (HCDTF) to curb community restiveness and foster a conducive business environment.
“Already this development has enabled the incorporation of 111 Host Communities Development Trusts (HCDTs) at the Corporate Affairs Commission. To ensure compliance and integrity, the Commission has developed “HostComply,” an intelligent, digital, automated platform for reporting and monitoring HCDT activities to ensure effective implementation and transparent administration of the HostCom provisions of the Petroleum Industry Act (PIA). This has resulted in the elimination of needless agitations, communal clashes and militancy, the statement added.
While urging Mr. President to continue supporting NUPRC, the Coalition urged the NUPRC boss, Engr. Gbenga Komolafe to remain focused and poised as he is bound to encounter enemies of the country who once fed fat on the dysfunctional system he has inherited and is vigorously working hard to correct.
“We are not unaware of the devices of enemies of progress to target high flyers. So, those who profit in dysfunctional systems are bound be very dissatisfied and plot against the obvious progress being made. We assure Engr. Komolafe and his team of the support of patriotic Nigerians and urge Mr. President to continue to support and empower the Commission to succeed even more. The Commission must not be distracted and its leadership under Engr. Komolafe must not rest on his oars in ensuring that the Nigerian Upstream oil industry is a global reference point.
God bless Nigeria”, the statement concluded.
