The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it has drafted Environmental Remediation Fund Regulation and the Upstream Environmental Regulation and Upstream Petroleum Safety Regulation, both of which have been subjected to stakeholder review in line with the PIA (2021).
The Commission Chief Executive (CCE) Engr. Gbenga Komolafe disclosed this at the press briefing Tuesday on its state of affairs after a year of the Commission’s inauguration.
While noting that the move was aimed at laying a solid foundation for the Commission’s regulatory functions, Engr. Komolafe confirmed that NUPRC has successfully launched the Host Communities Regulations to guide the implementation and operationalisation of the Host Communities Development Trust (HCDT), as also enshrined in the PIA, adding that it was putting in place modalities to ensure the smooth take-off of the various Trusts in a timely manner.
“In the area of Development and Production, the Commission, Engr Komolafe indicated has within the past one year achieved, among others, Declaration of the nation’s reserves which stands at Oil and Condensate Reserves: 37.046 MMMB, this indicates an increase of 0.37% compared to 2020 figures. Life index stands at 60 years. Gas Reserves: 208.62 TCF, this indicates an increase of 1.01% compared to 2020 figures. Life index stands at 88 years.
“Automation of Upstream work processes is almost completed. It is planned to improve the efficiency of our work processes and become operational before the end of year 2022.
“Ikike first oil was officially celebrated in September 2022. It is expected to deliver peak production of 50,000 barrels of oil equivalent per day by the end of 2022.
“Deployment and commissioning of Aiteo 120kbd barge mounted crude oil processing Facility to minimise crude oil theft and vandalism on the NCTL.
“Deployment and commissioning of Tenoil 10kbd Early Production Facility (EPF) increased crude oil daily production by 10kbd.
“Regularization and commissioning of Halkin 5kbd EPF at Atala OML-46.
“Inauguration of an integrated industry-wide study to ascertain shut-in wells that can be reactivated in the short, medium, and long-term. The primary aim is to boost production and guide investment planning. In addition, the study aims to optimize recovery factor via identification of EOR/IOR candidate wells and recommend low hanging potentials to boost National production. The study has been concluded and is in the report writing stage.
“Development of the Advanced Cargo Declaration Regime, and Crude oil and LNG Tracking (COLT) are also in process.
“Granted 274 export permits for a total of 480,863,863 barrels of crude oil/condensate/EGTL between Q4 2021 and Q3 2022.
“Completed establishment of ELI-AKASO crude oil export terminal.
“Publishing of up-to-date data on National Crude oil production on the Commission’s website has ensured transparency of data and information. It has provided accurate volume to both internal and external users.
“In line with the Provisions of Section 108 of the PIA 2021, commenced engagement and sensitisation of all operators to submit gas flare elimination and monetization plans.
“Ten (10) High Impact Technologies, innovation, and Solutions have been successfully qualified and adapted into the Nigerian Oil and Gas Industry. The high impact technologies aim to increase oil discovery and production, reduce cost of Pipeline Maintenance and Integrity threshold” among others.
NUPRC boss added that in the area of Exploration and Acreage Management Directorate, the Commission has so far achieved the “Award of 47 Petroleum Prospecting Licences to winners of marginal fields during the 2020 Marginal Field Bid Round.
“Development of Model Licence and Model Lease in conjunction with Legal and Compliance and Enforcement (C&E) SBU.
“Renewal of OMLs 128, 130, 132, 133 and 138.
“Acquisition, processing, and interpretation of 82,175 sqkm of multibeam data and Geochemical analysis of standard cores and heat flow data over the Niger Delta offshore”.
NUPRC boss added that the body has made significant in-roads in the areas of Health, Environment and Security, adding apart from the Host Communities Regulations to guide implementation and operationalisation of the HCDT, it has also developed and automated the Host Community Development Trust reporting, monitoring, and data management portal.
“Settlors have already commenced submission of applications on the portal; we have had successful engagements with the OPTS for the assignment of Littoral communities to Deep water operators with reference to Regulation 6(1) (d) of the Host Communities Development Regulations (2022). Modalities for the assignment of littoral host communities to deep offshore operators have been worked out.
“Also, the Commission is working in synergy with the National Boundary Commission (NBC) to map the littoral host communities to deep water operations” Engr Komolafe disclosed.
In the area of Economic Regulation and Strategic Planning, NUPRC, Komolafe stated has commenced the implementation of the Financial Viability Monitoring of licensees, lessees and permit holders in line with Section 7(y) by requesting the companies to submit their 2020 and 2021 Audited Financial Statements; as well as the review of Crude Handling and Crude Transportation Agreements in line with Section 174(9) with a view to ensuring the tariffs do not negatively impact on the cost of production.
Under our stewardship, the Projects and Cost Monitoring activities he recalled witnessed a new lease. He added: “A new model to estimate the value of assets and determine the Signature bonus, Renewal Bonus and Good and Valuable Consideration was developed in line with the provisions of the PIA (2021), with the Renewal bonus valuation completed for OML 125, 128, 132, 133, 138 and 130.
Economic analysis of some Field Development Plans (FDPs) were assessed for viability of investment with respect to “Government take”, cost and Decommissioning and Abandonment:
This he disclosed included: Oyo Field Development Plan submitted by General Hydrocarbons; Ohaji South Field Development Plan submitted by Seplat Petroleum Development Company; Abura Field Development Plan submitted by Nigerian Petroleum Development Company; West Isan Field Development Plan submitted by Chevron Nigeria Limited; Tunu Field Development Plan submitted by Shell Petroleum Development Company among others.
Engr Komolafe announced that the Commission was collaborating with a number of relevant agencies to undertake projects in the area of Climate Change/GreenHouse Gas (GHG) emissions management, including supporting the review and assessment of the national GHG emissions as part of series of workshops that led to revision of the Nationally Determined Contributions (NDCs) policy.
This, he stated, was submitted to the United Nations Framework Convention on Climate Change (UNFCCC) ahead of 26th Conference of Parties (COP26) summit in Glasgow, Scotland 2021. The fugitive methane emission reduction target (60%) from Oil & Gas was added to Nigeria’s NDC for the first time based on robust data provided by the NUPRC. The development of guidelines on the management of fugitive methane and greenhouse gases (GHG) emissions in the Upstream sector has been finalised.
He specified: “This policy document which is to enable the Commission drive emission reduction and mitigation targets of the National Determined Contributions (NDCs) will be approved and launched within the shortest practicable time”.
Meanwhile, Komolafe said the Commission projects in the next one year to embark on the development of a regulatory framework to reduce facilities development projects delivery costs through effective participation and Regulation of Concept, Design and Equipment selection; as well as the development of guidelines for facilities development concept to ensure that options for utilizing “infrastructure hubs” are fully exploited to reduce CAPEX and project delivery times.
He added: NUPRC “plans initiating the review and drafting of new Gas Flare Regulations further to the provisions of the Petroleum Industry Act 2021(PIA 2021) and updating the Technology Adaptation Guidelines and Technology Plan with input from the industry. Development of Barging and Trucking System/Portal has already reached User Acceptance Test Phase; and the Commission has commenced developing Draft Guidelines for Fluid Sampling and Characterisation in Oil and gas field operations in Nigeria.
“In the area of Health, Safety, Environment and Community matters, the Commission is working on On-boarding of all identified Host communities, incorporation of Trusts and operationalisation; Signing off and operationalisation of the GreenHouse Gas Emission Monitoring Guideline; Gazetting and operationalisation of the Upstream Petroleum Environmental Remediation Fund Regulations, the Upstream Petroleum Environmental Regulations, and the Upstream Petroleum Safety Regulations; and State-wide sensitization workshop for host communities on provision of PIA 2021.
“The Commission is committed to the National Data Repository and is planning to conduct quality check of all data deposited in the NDR with a view to identifying data integrity and gaps for immediate closure; commence the deployment of a robust tested and trusted Data Management Solution with the capability of handling the diverse data types being generated in the Upstream Oil and Gas activities; develop a data transaction handling platform for the submission and processing of information between the NDR and all stakeholders; expand NPMS and COLT platforms towards assisting the Commission in curtailing Crude Theft and monitoring Oil and Gas production activities; commence synchronisation of NDR Platform at of NUPRC-NOR Disaster Recovery Site; and Benchmark NDR operations for efficiency and in line with its current mandate post PIA”.
Engr komolafe indicated that the achievements listed were only in the core operational areas, affirming that the Commission has made giants strides also in the areas of revenue budget performance and administrative efficiency.
As he appreciated stakeholders inputs, Komolafe assured that the is committed to deliver on its mandate as enshrined in the PIA (2021) it was hopeful that the second year would witness more achievements.
The Eagleonline reports that NUPRC came into being following the passage of the Petroleum Industry Act 2021 which was signed into law by President Muhammadu Buharion 27thAugust 2021.
Following this, the Commission went through a transition from the defunct Department of Petroleum Resources (DPR) to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The top management of the Commission was inaugurated on October 22, 2021.
The passage of the PIA (2021) heralded the new dawn in oil and gas business in Nigeria.