The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rolled out its action plan for 2024 and the near term (2024–2026), highlighting regulatory actions to be implemented in furtherance of its mandate.

The commission’s chief executive, Gbenga Komolafe, said in a statement on Monday that the Regulatory Action Plan (RAP) was focused on predictability, future licencing rounds policy and implementation, and the unit cost of production optimisation and automation.

Mr Komolafe said it also focused on business process improvements for operational efficiency, promoting ease of entry and investment retention, vacating entry barriers associated with huge asset acquisition fees, and deepening transparency, accountability and the elimination of discriminatory practices.

He listed others as the implementation of a carbon credit earnings framework for upstream operations, accelerating the execution of oil and gas development and production projects, and enforcing the Drill or Drop provisions of the Petroleum Industry Act.

“Other areas of focus include the optimisation of federation revenues, decarbonisation, and greenhouse gas (GHG) emissions management in the production environment, and the incorporation of green stories in FDPs.

“It includes diligent monitoring of the implementation of the Nigerian Gas Flare Commercialisation Programme (NGFCP) awarded sites for optimum flare-out monetisation and Host Community Trust Fund implementation and guiding the trust fund activities.

“This will reduce agitation in the operations areas and 100 per cent hydrocarbon accounting,’’ he said.

The CCE further said the RAP also targeted the implementation of the new production curtailment regime and domestic crude supply obligation, annual asset performance assessment and reviews, and enforcement of the Domestic Crude Supply Obligation (DCSO).

He said it targeted the Domestic Gas Distribution Obligation (DGDO) to improve domestic refining capacity by implementing frontier exploration funds, decommissioning and abandonment funds, and zero tolerance for default in royalty payments.

According to him, value creation through approval of the annual work programme or budget and monitoring of financial viability, crude oil and gas pricing in contemporary terms, revenue generation, and implementing a zero default strategy on the payment of royalty are included.

Mr Komolafe indicated that the foregoing represented, in broad terms, the key thematic focus areas that would underpin the Commission’s activities in 2004.

“These are in addition to the commission’s commitment to its general objectives and functions as provided in the PIA and by implication all other laws relating to upstream petroleum operations in Nigeria,” he added.

He explained that the aim of focusing on these areas was to bring into rapid effect the transformation of the sector envisaged by the PIA (2021) and ramp up the efficiency and performance of the Sector.

He was optimistic that implementing these initiatives would increase revenues generated for the government from the industry, improve the operating environment, optimise value, generate jobs, and position the country as a destination for foreign direct investment. 

(NAN)