Financial Energy Review
The Independent Petroleum Producers Group (IPPG) commended the leadership of Engr. Gbenga Komolafe, the Commission Chief Executive of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), for tireless efforts and unwavering commitment to the growth and development of the oil industry.
IPPG made this commendation during the third year anniversary celebration of NUPRC.
According to the independent petroleum producers, the Commission has made notably strides since its establishment particularly through the diligent implementation of the Petroleum Industry Act (PIA).
“Following the enactment of the PIA in 2021, the Commission has led the charge in ensuring the implementation of the act with its focus firmly placed on ensuring that the full value of the act are realised for the benefit of the country. At the time the PIA was enacted, a genuine industry concern was on the manner in which the transition from the defunct Department of Petroleum Resources (DPR) to the bifurcated regulatory bodies was to be handled – I believe we can all agree today that this transition was effectively managed with minimal operational disruptions recorded. This deserves commendation for the government and industry regulators.”
IPPG also commended NUPRC under the watch of Engr. Komolafe for its industry-wide consultation and engagements that have taken place in the process of formulating industry regulations. This approach has not only been proactive but has also promoted inclusivity and ensured the robustness of industry regulations. This collaborative and all-inclusive approach is a welcome development and required for the industry to thrive.
Speaking further at the anniversary event, IPPG noted that it is important that these achievements be put in perspective with the evolution of the global and domestic landscape and the underlying challenges facing the nation.
“Today, our current crude oil production of about 1.4 million barrels per day remains very low and hugely inadequate to meet our energy requirements and socioeconomic goals as a nation. Thus, it is critical that our upstream sector is urgently repositioned and for this reason, IPPG will continue to strongly advocate for steps aimed at arresting the dwindling production,” IPPG added.
It reiterated its call for urgent actions aimed at unlocking incremental production growth in the short to medium term.
The independent petroleum producers called for conclusion of all pending IOC divestment transactions swiftly to derive optimum value, while unblocking all hurdles to Final Investment Decisions (FID) on IOC deepwater projects.
Enhancing security across the Niger Delta for a conducive operating environment and stemming incidences of asset vandalism and unrest will assist operators.
IPPG called for upgrading and expanding industry infrastructure to enhance efficiency and reliability of product supply to both the domestic and export market.
The independent petroleum producers applauded official launch of Project One Million Barrel of Oil Per Day (Project 1MBOPD), adding that the success of this initiative will take production to the region of 2.5 million BOPD.
The initiative will put Nigeria in a position to meet its domestic crude oil demand and export commitments. This is definitely a step in the right direction.
“It is imperative certain incentives and relaxation of certain positions are put in place to achieve this noble goal of Nigeria’s oil production reaching 2.5mmbpd,” IPPG stated.
The independent petroleum producers urged NUPRC to relax some provisions that allow more service providers to return to the country and upgrades for local ones under Nigerian Content Development and Monitoring Board (NCDMB) guidelines.
Simplification and speed up processes for acquisition of goods and services by providing MSAs that can be used by all as the basis for activity deliveries.
There should be revision FAT procedures to be used for certified international agencies and allowance for operators to sort out AG disposal systems and give more time for implementation.
IPPG believed that achieving this goal will require a concerted effort from all industry stakeholders, policy formulators, regulators and operators – working in unison towards achieving shared goal of production growth and energy security.
“IPPG stands ready to support and partner with the government and all industry stakeholders for the growth and development of our industry.”
