- NUPRC chief executive has confirmed the takeover of all crude oil export terminals as directed by President Buhari.
- The NUPRC has developed 18 key regulations, 5 of these regulations have been gazetted while 13 are being reviewed by the Ministry of Justice.
- The NUPRC is working to reduce the unit cost of oil production per barrel.
Gbenga Komolafe, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed the takeover of crude oil export terminals in the country. He confirmed this during a May 9 interview on Arise TV.
According to Komolafe, express directives have been given by President Buhari to both the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to address the function overlaps highlighted by the industry.
Komolafe said that the directive is being carried out.
Nairametrics had earlier reported that President Buhari had written a letter saying the exercise of any regulatory role by the NUPRC and NMDPRA “on any existing crude oil export terminal established prior to the effective date of the PIA should cease immediately”.
President Buhari directed the immediate compliance with the resolution of the senate that “NUPRC is the sole a (sic) only regulatory entity to regulate and monitor the activities of all existing crude oil export terminals in Nigeria subsists in compliance with section 7ee of the PIA (2021)”.
During the interview, Komolafe highlighted some of the Commission’s achievements during the 18 months of its existence. He said:
- “We have recorded a basket of achievements. We have been able to restore confidence in the industry, which is key to attracting investments. We did this via the processes we have adopted in terms of regulatory tools that we have put in place.
- “Within a record time of 18 months, we developed 18 key regulations, 5 of these regulations have been gazetted while 13 are being reviewed by the Ministry of Justice and we are optimistic that they will be gazetted within the shortest possible time so that the implementation can commence.
- “We have also ensured the conversion of 40 OPLs to PPLs. Also, within 18 months, we have been able to incorporate 74 host communities’ development trust, and the beauty of that is we have been able to ensure that we inculcate a sense of ownership into the host communities. By the time the development fund is implemented, it will engender peace in the host communities. NUPRC has also automated its processes in a manner that ensures operational efficiency”.
Komolafe said that the PIA clearly stipulates the functions of the two regulators in the industry. He noted that as far as the Commission is concerned, there is no ambiguity in the provisions of the PIA. He also insisted that the Commission is committed to the principles of transparency to address leakages, which enhances the country’s oil production.
What you should know
According to Komolafe, the Commission is working to reduce the unit cost of oil production per barrel. Once that is done, it will be easy to optimize revenue for the federation from the country’s hydrocarbon resources.
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