The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has said developments in the global energy space calls for collaboration among stakeholders to enable the country to achieve higher productivity and attract the desired investments.
The Commission Chief Executive, Gbenga Komolafe, said this yesterday, in his welcome remark at the opening of the 5th Nigeria International Energy Summit (NIES) 2022, in Abuja.
Themed, “Revitalizing the Industry, Future Fuels and Energy Transition,” he said this year’s summit is well focussed, “as it offers unique opportunity for networking and one-stop-shop for all stakeholders to come together to discuss and share knowledge on ways to reposition the Nigerian oil and gas industry for higher productivity and attraction of new investments.”
Komolafe also used the opportunity to share insights with potential investors on the statutory mandate of the Commission and the shifts in its regulatory direction since the passage of the Petroleum Industry Act (PIA) 2021.
He noted that the Act empowers the NUPRC to carry out both technical and commercial regulation of the upstream oil and gas sector, and offers attractive fiscal, regulatory and governance regimes for attraction of investments into the sector.
The energy transition regime has posed a challenge and opportunity for Nigeria to reposition its energy focus and regulatory policies towards development of clean and renewable energy.
Rising energy demand
Komolafe argued that despite the transition and growth in renewable energy and nuclear power, “fossil fuels are expected to continue to meet much of the world’s energy demand.”
To meet increasing demand, he urged countries to carry out increased exploration, adopt advanced technology to maximize production yields and increase oil and gas reserves.
He said: “The energy transition regime has posed a challenge and opportunity for Nigeria to reposition its energy focus and regulatory policies towards development of clean and renewable energy.”
“Already, investors in the upstream are being tasked to provide their ‘green story’ as a basis for attracting required funds for field development.”
Noting that Nigeria cannot exist in isolation of the global trend in energy transition, Komolafe assured that the NUPRC, in compliance with its statutory regulatory mandate will ensure that operators present their ‘Green Story’ in Field Development Plan (FDP) in a manner that incorporates carbon capture and gas commercialization.
Alluding to a World Bank rating, he argued that with 206 trillion cubic feet gas reserves and crude oil and condensate reserves of 37 billion barrels, “Nigeria has huge potential to monetize and derive optimum value from its oil and gas assets in response to the challenges posed by the energy transition regime.”
He added that the supply disruptions caused by Russia’s invasion of Ukraine resulted in an upward swing of oil prices surpassing $100/barrel since 2014, and offers market potential for Nigeria to key into in optimizing its oil and gas assets.