The Government of Nigeria aligning policies and regulations with energy transition targets – NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the Federal Government is aligning its oil and gas policies and regulations with the ongoing global energy transition targets.
The Commission’s Chief Executive, Mr. Gbenga Komolafe, stated this in an interview with energy editors at the NUPRC’s booth in Nigeria’s pavilion at the ongoing 2023 Offshore Technology Conference (OTC) in Houston, Texas, United States.
He reiterated that the Federal Government is committed to achieving carbon neutrality, ending energy poverty, and driving economic growth in the country.
He said: “Energy transition conversation is gaining momentum globally and as a nation, we need to keep track of that conversation. Good enough, Nigeria is keeping track of the conversation and we are fine-tuning our policies to be in alignment with the energy conversation.
“Preparation is being progressed and recall that President Muhammadu Buhari made a commitment that the nation will attain net zero emissions by 2060. Therefore, Nigeria has developed its energy transition plan and for us as the regulatory commission, we are fine-tuning our policies and regulations to be in alignment.
“Currently, we have created a department to deal with decarbonization to reduce carbon footprints credit and our regulations are equally benchmarking global best standards and practices.”
He stated that the Nigerian government is firmly working towards its commitment at United Nations Climate Change Conference, COP26 in Glasgow, UK, to cut its carbon emission to net zero by 2060.
On an update on Nigerian Gas Flare Commercialization Program (NGFCP), Komolafe said the process is progressing well. He said that soon the Commission will announce the names of the successful bidders.
He noted that this is coming at a time energy crisis and transition are on the backdrop of the government’s decade of gas policy. The development seeks to tame decades of gas flaring in the oil-producing region of the Niger Delta and enable the federation to generate billions of dollars in investment and signature bonuses.
He said in recognition of the funding challenges facing some awardees of the 2020 marginal field bid round licenses, the Commission is, also, planning production-based lending engagement that will help them source needed capital to begin full field development towards hitting first oil.
He explained that this is an initiative of the Commission to ease challenges in the sector, stressing that the engagement which is planned to begin soon will be between the Commission, Petroleum Production License (PPL) Awardees, Exploration and Production (E&P) service providers, and banks.
“It is to provide platforms for strategic partnership/alliance between the awardees and the service providers for good re-entry and drilling services. The arrangement is to be offered on service fee recoverable by the service providers from production to be attached,” he noted.
“What the Commission is doing is a landmark plan to organize an E&P International Financing Road Show for financiers, investment bankers, private equities, and multi-lateral institutional investors. The initiative is to showcase the high-value quick-win opportunities available to investors in the recent PPL awards, the ongoing National Gas Flare Commercialization Program, as well as the ongoing Deepwater mini-bid awards.
Also, the Commission has developed a Corporate Governance Framework for upstream petroleum operations. This is to create clarity and restore confidence in the industry, which is very important. Also, the framework is to enhance sustainability, environmental, and corporate governance requirements and to facilitate capital attraction by investors for the optimal and efficient development of PPLs and other assets.
He commended the PETAN leadership for leading a quality delegation to the 2023 OTC Conference. He urged them to sustain the tempo and continue the development of indigenous capabilities in the oil and gas sector.
“PETAN is indeed doing us nationally proud by extending their capacities in other frontiers in Africa,” he said.