By Adewale Sanyaolu
The Nigerian Upstream Petroleum Regulatory Commission(NUPRC) has pledged to deepen the Domestic Crude Supply Obligation(DCSO) and the Domestic Gas Delivery Obligation in order to ensure domestic energy security for the country.
The Commission Chief Executive, NUPRC, Mr. Gbenga Komolafe, disclosed this at the Society of Petroleum Engineers(SPE) Nigeria Annual International Conference and Exhibition (NAICE) 2024, which began in Lagos, yesterday with the theme: “Petroleum Industry Value Chain Optimisation: The Inevitability of Midstream and Downstream Development.”
This was as the Nigerian National Petroleum Company (NNPC) Limited also assured of its support for the Dangote Refinery and all other refineries in the country to ensure that they have adequate feedstock for their operations.
Komolafe who was represented by the Executive Commissioner, Development and Production, Enorense Amadasu, said the commission was entrenching collaboration with its sister agency, the NMDPRA and other key stakeholders to deepen end-to-end value in critical areas of operations.
He added that NUPRC is equally implementing the Upstream Asset Divestment Framework to guide the seamlessly non-destructive exit of divesting entities and promote sustainable operation for the acquiring parties.
“We are committed to entrenching collaboration for enhanced value to the industry and the nation at large, as we deliberate on the strategies and innovative approaches that will prepare the industry forward, let us remember that the optimisation of the midstream and downstream segments is not merely an option but inevitability.
By focusing on this area, we can mitigate the risks associated with market volatility, enhance the refining capacities, and ensure a more stable and efficient energy security for our nation in the world undergoing change”, Komolafe stated.
The NUPRC boss underscored the importance of conscious action to mitigate the impact of energy transition and position the nation for a decarbonised world.
He argued that irrespective of any individual’s views, the world is on the energy transition course. He insisted that the dividend of the in-country value from the oil and gas resources via a midstream and a downstream operation is highly imperative
Also speaking, the Group Chief Executive Officer, NNPC Limited, Mele Kyari, said NNPC Ltd was making every effort to make sure that the refineries owned by energy were coming to operation so that domestic supply of petroleum products could be improved.
“We also continue to support other efforts, including the Dangote refinery and very many other smaller refineries that are coming. And we have a duty to support all this. That’s why we’re at the forefront of supporting these businesses to make sure that they function and they deliver value to our country,” he stated.