Economic Regulation & Strategic Planning
Managing commercial aspects of Nigeria's upstream petroleum operations
ECONOMIC REGULATION AND STRATEGIC PLANNING (ER&SP) DEPARTMENT
The Economic Regulation and Strategic Planning (ER&SP) Department is one of the six (6) departments of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) in compliance with section (18) subsection (2) of the Petroleum Industry Act (PIA) 2021.
The ER&SP Department of the Nigeria Upstream Petroleum Regulatory Commission manages the commercial aspects of Nigeria's upstream petroleum operations in accordance with sections (7) and (8) of the PIA. In addition, the Department monitors and coordinates strategic and budget planning for the Commission.
MANDATES
ER&SP executes its mandate and responsibilities through its two (2) main Divisions: Economic Regulation and Strategic Planning.
ECONOMIC REGULATION DIVISION
This Division ensures the Nigerian government benefits economically from petroleum resources. The division's mandate includes managing royalties, rentals, and fees, setting market-reflective oil prices, monitoring licensees' financial viability, approving commercial aspects of field development plans, and conducting economic studies and due diligence.
Fiscal Value Administration Unit
Key Functions:
- Royalty assessment management
- Conduct market research on prices and valuation
- Regulatory compliance and reporting
Deliverables:
- Publish quarterly indebtedness status of all E&P companies
- Issuance of quarterly demand notice to E&P companies
- Publish monthly market analysis reports
Fiscal Advisory and Policy Implementation Unit
Key Functions:
- Advise Management on impact of Fiscal and Policy
- Administration of third-party Open Access for crude oil and gas handling
- Mediation on conflict on gas supply debts and fiscal pricing
- Determination of Upstream Gas Cost for Domestic Gas Supply Obligation
Deliverables:
- Issuance of Third-Party Crude Oil Handling and Transportation Permit
- Annual computation of domestic gas cost
Economic Value Administration Unit
Key Functions:
- Valuation of Petroleum Assets
- Conducting Financial Due Diligence on upstream petroleum transactions
- Field Development Plan budgeting analysis
- Monitoring Financial viability and capacity of E&P companies
- Project cost management
- Assessment of statutory funds (D&A Fund, ERF, HCD Fund)
Deliverables:
- Petroleum Assets Valuation Reports
- Upstream Petroleum transactions Financial Considerations Reports
- Annual E&P Companies Financial Performance Reports
- Annual Statutory Funds Assessment Reports
Revenue Reporting & Audit Engagement Unit
Key Functions:
- Revenue reporting
- Revenue audit engagement
- Stakeholder engagement
- Process improvement
Deliverables:
- Monthly revenue reports for internal and external stakeholders
Revenue Monitoring & Control Unit
Key Functions:
- Revenue monitoring
- Revenue control
- Revenue analysis
- Process improvement
Deliverables:
- Monthly report of Revenue Assurance activities on COTEX, GATEX, REMITA, IGR platforms
- Monthly report on Internally Generated Revenue (IGR) and Miscellaneous Oil Revenue (MOR)
Revenue Ledger and Information Systems Unit
Key Functions:
- Revenue accounting and management
- Information systems management
- Reporting and analysis
- Process improvement
Deliverables:
- Prepare financial reports on revenue performance
- Develop and maintain a reliable database system
- Monthly Revenue leakage Report
STRATEGIC PLANNING DIVISION
This Division identifies strategic opportunities, research industry trends, handles performance evaluation, assesses risk and develops mitigation strategies for the commission. In addition, the division evaluates the performance of operators' annual work programs.
Data Management Unit
Key Functions:
- Oversee Commission's commercial data systems and reporting
- Data collection and analysis
- Commercial data management and systems
- Collaborate with external Stakeholders
Deliverables:
- Preparation of NUPRC Monthly, Mid-Year and Annual reports
- Preparation of Nigeria Oil and Gas Industry Annual report (NOGIAR)
- Maintain Commission Electronic Financial and Operational Data Gathering System
Budget Administration Unit
Key Functions:
- Development of Commission's annual budget
- Budget performance monitoring and analysis
- Development of inputs to FGN's MTREF/FSP
- Stakeholder engagement
Deliverables:
- Publishing quarterly budget performance reports
- Annual Cost of Revenue Collection (CORC) Budget
- Annual Commission's Input to FGN's MTREF/FSP
Work Programme Performance & Evaluation Unit
Key Functions:
- Administration of annual work programme
- Performance monitoring and evaluation
- Performance reporting
- Continuous improvement
Deliverables:
- Annual comprehensive reports on work programme performance
- Annual performance reports on progress of work programme activities
Strategic Research & Development Unit
Key Functions:
- Strategic research and analysis
- Development, monitoring and evaluation of strategic initiatives
Deliverables:
- Bi-annual Strategic initiative implementation Report
- Governance Framework on Research and Projects
Risk Management Unit
Key Functions:
- Risk identification and assessment
- Risk mitigation and control
- Risk reporting and communication
- Risk management framework development
Deliverables:
- Enterprise Risk Management Policy
- Quarterly reports detailing identified risks and mitigation efforts
Service Industry & Investment Unit
Key Functions:
- Oil & Gas market trend analysis
- Investment facilitation and promotion
- Development and implementation of investment policies
- Investment performance evaluation
Deliverables:
- Quarterly reports identifying potential investment opportunities
- Quarterly assessment report on service industry investment project performance
Achievements
- Launched the Annual Work Program and Budget portal
- Deployed the Petroleum Resource Intelligence System (PRIS) Portal
- Seamless transition of Nigerian crude oil pricing function from NNPCL to NUPRC
- Seamless transition of Crude Oil and Gas Curtailment role from NNPCL to NUPRC