NUPRC’s Efforts towards Effective Implementation of PIA for Oil and Gas Reserve Growth – Komolafe
Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), emphasized the importance of staying updated on developments and challenges within the oil and gas industry, particularly regarding regulatory frameworks and investment strategies.
Speaking at the 7th edition of the Nigeria International Energy Summit (NIES) in Abuja, Komolafe highlighted the decline in investments in Nigeria’s oil and gas industry before the enactment of the Petroleum Industry Act (PIA) in 2021. This decline was largely due to regulatory uncertainties and the global push for increased investments in renewable energy amid concerns about climate change.
Komolafe pointed out that clean energy technologies are now receiving more significant investments compared to fossil fuels, as indicated by the IEA World Energy Outlook 2023. Additionally, Nigeria faces competition from regional peers, resulting in a reduction in its share of capital/reserve ratio.
However, NUPRC is charting a new path in the upstream petroleum sector through its 10-year Strategic Plan (2023-2033) and the development of twenty-five priority regulations in collaboration with industry stakeholders. These initiatives aim to support energy security, eliminate regulatory bottlenecks, and ensure effective implementation of the PIA.
To enhance collaboration with the industry, NUPRC has established a dedicated contact team to engage regularly with stakeholders on regulatory matters. The commission also facilitates collaboration among stakeholders through platforms like the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) and roadshows.
Komolafe emphasized NUPRC’s commitment to ensuring effective implementation of the PIA to stimulate growth in oil and gas reserves. Despite Nigeria’s vast reserves, there is a gap between actual production and technical potential. Closing this gap presents an opportunity to unlock additional revenue streams and strengthen economic resilience.
Nigeria’s potential extends beyond hydrocarbon resources to include green and blue hydrogen, solar, wind, biomass, and critical minerals. With a growing young population and a large market size, Nigeria holds promise for sustainable development and prosperity.
NUPRC is implementing strategic measures to address challenges and boost production in the oil and gas sector. These measures include improving transparency in hydrocarbon measurement, accelerating field developments, optimizing production, and adopting enhanced oil recovery processes.
Efforts by NUPRC have already yielded positive results, including the approval of field development plans, significant investments in drilling and well workovers, and improved exploration activities. The commission is also collaborating with international oil companies to accelerate the development of deep offshore assets.
NUPRC is actively promoting investment opportunities in the oil and gas sector, particularly in gas production to support the Federal Government’s Decade of Gas Programme. The commission is proactively addressing the projected supply gap through aggressive development of the nation’s gas resources and the elimination of gas flaring.
Looking ahead, NUPRC remains committed to enhancing the global competitiveness of Nigeria’s upstream sector, attracting investment, and optimizing hydrocarbon resource development for the benefit of the Nigerian economy. Collaboration with industry operators and stakeholders will be key to achieving these goals and ensuring a sustainable and resilient energy future for Nigeria.
