A coalition of Civil Society Organisations has recommended Mr. Gbenga Komolafe, the chief government officer of the Nigerian Upstream Petroleum Regulatory Fee (NUPRC) for his transparency, effectivity and developmental strides within the development of the Nigeria’s oil sector.
The coalition embody; Rising-Up for a United Nigeria; Nationwide Coordinator, Guardians of Democracy and Growth Initiative; Rural Empowerment and Growth Initiative; Government Director, Unbiased Public Service Accountability Watch; Nigeria Youth Advocacy for Good Governance Initiative and Government Director, Governance and Financial Growth Monitoring Initiative
Talking at a world press convention in Abuja on Monday, chief of the coalition and convener, Rising-Up for a United Nigeria, Amb. Solomon Adodo, praised the NUPRC boss for keying into President Bola Tinubu’s Renewed Hope Agenda by bettering the oil regulatory actions and shoring up vital strategic manufacturing output since his assumption of workplace.
In accordance with the teams: “4 days in the past, President Bola Ahmed Tinubu marked his one fruitful 12 months in workplace. He got here into workplace at a time of apparent financial disaster that would have led many leaders to despair.
“For the Renewed Hope Agenda of President Tinubu to have succeeded thus far, particularly on the financial entrance, sure key businesses and officers have labored tirelessly, noiselessly and profoundly to ship creditably on their mandate. The Nigerian Upstream Petroleum Regulatory Fee (NUPRC) is foremost amongst these businesses. This principally hinged on the truth that with the approaching on board of President Tinubu, the NUPRC obtained reinvigorated help which led to enhancements in operations and the resultant vital enhance in crude oil output and earnings for our pricey nation at this crucial level.
“It’s in recognition of the large achievements of NUPRC that its excellent Chief Government Officer, Engr. Gbenga KOMOLAFE was bestowed with the extremely prestigious Solar Public Service Award this 12 months amongst a number of different recognitions and commendations each regionally and internationally.
“Not like the outdated order the place some businesses within the oil and gasoline sector had been accused of opaqueness, the NUPRC underneath Engr. Komolafe is understood for openness, readability, ease of doing enterprise and predictability of enterprise outcomes, which is why extra upstream oil traders are flooding the nation. This tide of constructive information for the nation doesn’t, nonetheless, sit effectively with those that search to antagonize the federal government and guarantee President Bola Ahmed Tinubu fails even on the detriment of our collective progress. It’s thus crucial that we assess the diploma of success recorded within the Nigerian Upstream Petroleum Regulatory Fee because the creation of this administration while preferring pathways for higher help to the Fee,” the group stated
Commenting on the wonderful achievements of the NUPRC chief government, the teams famous that Engineer Komolafe has been in a position to stabilise the oil enterprise surroundings and entice large productive partnerships.
“A few of his vital milestones embody: A major discount in crude oil theft because the Fee performed a complete audit of crude oil theft and evaluated the integrity of upstream property to find out the precise extent of theft within the {industry}. Additional measures had been applied to handle crude oil theft by enhancing cargo declaration and upstream measurement processes. Moreover, enhanced rules had been put in place to fight crude oil theft, thus leading to a serious increase to Nigeria’s crude oil manufacturing from beneath a million barrels per day to above 1.6 million barrels per day. Presently, Nigeria’s oil manufacturing and output is at an all-time excessive and the surroundings, most conducive for enterprise. This has led to a reversal in oil funding decline.
“The Fee undertook a complete industry-wide research geared toward reactivating inactive wells in Nigeria, unlocking 700 thousand barrels of oil per day. The NUPRC additionally developed a template for Home Crude Oil Provide Obligation (DCSO) to make sure adequate and uninterrupted feedstock to all native refineries to serve Nigeria’s home petroleum wants.
“All present crude dealing with agreements have undergone a complete evaluate geared toward bolstering transparency and fostering competitiveness within the strategy of crude evacuation. This initiative is already starting to yield a discount in each capital and operational expenditure.
“Within the space of development of reserves, the Nigerian Upstream Petroleum Regulatory Fee (NUPRC) issued its first Petroleum Exploration License (PEL) for a geophysical survey undertaking geared toward buying roughly 56,000 sq. kilometres of 3D seismic and gravity information offshore within the Niger Delta. A feat that may place Nigeria within the frontlines within the comity of OPEC nations.
“For optimum effectivity, the NUPRC superior the mini bid licensing spherical for seven deep offshore Petroleum Prospecting Licenses (PPLs) to spice up nationwide reserves. This effort, resulted in a rise of the nation’s crude oil reserves to 37.50 billion barrels of oil and 209.26 trillion cubic toes of gasoline, reflecting a 1.43% and 0.21% enhance, respectively, in comparison with 2023 figures.
“The Fee with correct foresight additionally engaged Exploration & Manufacturing corporations to unlock roughly 57 trillion cubic toes of uncommitted or unmonetised gasoline reserves Moreover, the annual Home Fuel Supply Obligation (DGDO) has been issued to all leasees to drive development in gasoline manufacturing. This initiative seeks to stability export portfolios with the increasing demand within the home gasoline market with a resultant decrease gasoline costs. The DGDO algorithm will unlock extra upstream gasoline provide for elevated home gasoline utilisation.
“As a major transparency milestone in oil and gasoline income optimisation, the Fee has successfully transitioned the administration of Fiscal Oil Costs (FOP) differentials from NNPCL to NUPRC It started publishing market-reflective Fiscal Oil Costs (FOP) differentials on NUPRC’s web site in step with the transparency aims of the Petroleum Business Act 2021.
“The Fee has performed an intensive audit of the aptitude of upstream operators to generate sufficient income or sources to cowl their operational prices and obligations. On this context, the Fee has carried out an preliminary monetary viability evaluation for upstream petroleum corporations to make sure the sector’s long-term monetary sustainability and stability. This has considerably boosted investor confidence within the upstream sector.
“Engr. Komolafe has additionally seen to the re- engineering of the Nigeria Nationwide Knowledge Repository (NDR), monetization of oil blocks and the alignment of rules with world vitality transition initiatives and carbon footprint discount targets. Nigeria’s dedication to the elimination of gasoline flaring is a testomony to Engr. Komolafe’s goal-getting doggedness. Below the Nigerian Fuel Flare Commercialization Program (NGCP), it has forty-nine flare websites for commercialization, demonstrating dedication to environmental sustainability and useful resource optimization. The Nigerian Fuel Flare Commercialisation Programme (NGFCP), the initiative has accounted for the monetisation of roughly 50% of gasoline at the moment being flared in the direction of attaining the Web Zero goal. A 60% discount in fugitive methane emissions from oil and gasoline was achieved for the primary time based mostly on sturdy information supplied by the Fee. The NUPRC engaged with the Worldwide Finance Company relating to alternatives surrounding Carbon Seize Utilization and Storage (CCUS). To advance vitality transition, decarbonisation, and carbon monetisation, the Fee established an Power Transition and Carbon Monetisation unit, formulated a regulatory framework, and commenced enabling carbon credit score earnings by means of an outlined framework for key local weather motion initiatives and associated actions.
“As a proactive inclusive growth strategy to make sure seamless operations, the Nigerian Upstream Petroleum Regulatory Fee has additionally expedited the execution of the Host Neighborhood Growth Regulation and included the Host Communities Growth Belief Fund (HCDTF) to curb neighborhood restiveness and foster a conducive enterprise surroundings. This enabled the incorporation of 111 Host Communities Growth Trusts (HCDTs) on the Company Affairs Fee. The Fee developed ‘HostComply’, an clever, digital, automated platform for reporting and monitoring HCDT actions to make sure efficient implementation and clear administration of the HostCom provisions of the PIA. The Littoral States had been assigned to deepwater operators, with certified communities inside these states speaking with their respective settlers. This has resulted within the elimination of unnecessary agitations, communal clashes and militancy.
“Moreover, as a part of NUPRC’s effort to develop Frontier Basins, the Fee opened a Frontier Exploration Fund Account with the Central Financial institution of Nigeria, into which 30% of NNPC Restricted Revenue Oil and Revenue Fuel is paid. Moreover, the drilling of three wells was facilitated within the Frontier basins. The beneficiaries thus have extra funds to develop and diversify their native financial system.
“In all facets of showcasing transparency, effectivity in regulatory actions and shoring up strategic manufacturing output, the Nigerian Upstream Petroleum Regulatory Fee has blazed the path with a number of valued achievements. This may be attributed to the reinvigorated zeal to march on with President Tinubu’s renewed hope agenda. So, as the federal government celebrates one 12 months of success within the petroleum {industry}, it’s crucial that public officers like Engr. Gbenga Komolafe be singled out and celebrated for giving life to Mr. President’s imaginative and prescient and including worth to governance.”
The teams additional warned detractors to desist from maligning the picture of the NUPRC chief, stressing that that “those that revenue in dysfunctional methods are sure be very dissatisfied and plot towards the apparent progress being made.”
“The Fee should not be distracted and its management underneath Engr. Komolafe should not relaxation on his oars in making certain that the Nigerian Upstream oil {industry} is a world reference level,” the group concluded.