- Komolafe notes the need to decommission and decarbonise the upstream segment of the oil and gas industry.
- President Bola Tinubu is projecting to increase oil and gas revenue to N7.69 trillion in 2024, a 344% increase.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said it will prioritise the implementation of the Petroleum Industry Act (PIA) and ensure an increase in crude oil production in 2024. The commission also targets strict enforcement of Domestic Crude Supply Obligation (DCSO) amidst challenges faced by local refineries and Domestic Gas Distribution Obligation (DGDO) to enhance domestic refining capacity.
In the Regulatory Action Plan (RAP) for 2024, the Chief Executive of NUPRC, Gbenga Komolafe, noted the need to decommission and decarbonise the upstream segment of the oil and gas industry. With the plan, Nigeria is considering a multifaceted roadmap to enhance regulatory predictability, streamline licensing rounds, optimise the unit cost of production, and implement automation and business process improvements for operational efficiency.
President Bola Tinubu is projecting to increase oil and gas revenue from N2.23 trillion in 2023 to N7.69 trillion in 2024, representing an increase of 344 per cent. At the same time, the federal government is expecting crude oil production to move to 1.78 million barrels per day against the current 1.250 million barrels amidst uncertain prices. The NUPRC plan delineates the regulatory approach and critical actions that the commission would implement as it oversees the upstream petroleum operations in Nigeria.
The key focus areas include easing entry barriers, promoting investment retention, and addressing challenges associated with significant asset acquisition fees. In a bid to deepen transparency and accountability, the plan incorporates the implementation of a carbon credit earnings framework for upstream operations. The plan targets accelerating the execution of oil and gas development and production projects to increase production. It also aligns them with the goals outlined in the Petroleum Industry Act (2021), including enforcing Drill or Drop provisions.
The plan, which aims to optimise federation revenues, outlines strategies for decarbonisation and greenhouse gas emissions management within the producing environment while emphasising the incorporation of green elements in Field Development Plans (FDPs). Komolafe disclosed that the commission would diligently monitor the Nigerian Gas Flare Commercialisation Programme (NGFCP) implementation and oversee Host Community Trust Fund activities to reduce agitation in operational areas while ensuring 100 per cent hydrocarbon accounting.