Financial Energy Review
………by Victor Egbo……..
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has dismissed the fear of workers who are concern that they will loss their various jobs as most of the international oil companies divest assets in preparation to leave Nigeria.
Komolafe spoke at the ongoing Energy and Labour Summit 2024 organised by the Petroleum and Natural Gas Senior Staff Association of Nigeria in Abuja.
The NUPRC boss said the commission would safeguard jobs and ensure the transfer of skills from the IOCs to the indigenous companies acquiring the assets formerly owned by the foreign investors.
“Regarding the workforce in this transition era, the commission is committed to safeguarding jobs and ensuring the transfer of skills from IOCs to indigenous companies,” Komolafe had said.
Speaking on the NUPRC’s mandate, he stressed that the commission is creating a regulatory environment that promotes investment, fosters innovation and ensures the responsible stewardship of Nigeria’s natural resources.
According to him, a comprehensive divestment framework has been implemented to guide asset divestment in the upstream petroleum sector, focusing on technical capacity, financial strength, and legal considerations, among others.
Komolafe, who was represented by the NUPRC Executive Commissioner for Development and Production, Mr Enorense Amadasu, acknowledged that the divestment of IOCs from Nigeria’s upstream oil and gas sector is a subject that has sparked considerable debate within the industry.
While addressing the state of the industry, the NUPRC Chief discussed the implications of IOCs’ divestment from Nigeria’s petroleum upstream sector, noting that over the past decade, there has been a marked shift in the Nigerian oil and gas landscape, driven by global energy transition goals, financial prudence and regulatory changes.
These divestments, he added, have raised critical questions about the future of the industry.
He also highlighted the critical role of the energy sector in driving socio-economic development and the imperative for a forward-thinking approach that embraces innovation, collaboration and adaptability in the face of fluctuating oil prices, geopolitics and decarbonisation.
“As we convene here amidst unprecedented challenges and transformative opportunities, we must recognise the pivotal role that the energy sector plays in driving socio-economic development and prosperity,” Komolafe noted.
He maintained that the fluctuating oil prices, geopolitics and the imperative for decarbonisation are factors that require a strategic and proactive approach.
He further stressed the importance of harnessing technology, diversifying energy sources, and cultivating partnerships that transcend borders and ideologies.
The on-going divestmement of assets include Shell Petroleum Development Company, Nigeria Agip Oil Company, Mobil Producing Nigeria Unlimited, Equinor all set to divest their investments in 26 oil blocks in Nigeria to indigenous firms.
“A total of 26 blocks are proposed to be divested. These blocks have an estimated total reserve of 8.211 million barrels of oil, 2,699 million barrels of condensate, 44,110 billion cubic feet of associated gas and 46,604 billion cubic feet of non-associated gas. This is a significant contribution to the nation’s hydrocarbon resources.
“Additionally, these blocks contain P3 reserves estimated at 5,557 million barrels of oil, 1,221 million barrels of condensate, 14,296 billion cubic feet of associated gas and 13,518 billion cubic feet of non-Associated Gas.
“It is worth noting that a substantial part of the P3 reserves is located in or near producing assets. This means that a competent successor could easily mature them to 2P reserves,” Komolafe had said few months back.
