In a move to arrest the exit of International Oil Companies (IOC) from the country, the Nigerian Upstream Petroleum Regulatory Commission (NUPRE) has approved agreement earlier reached between the Nigerian National Petroleum Corporation (NNPC) and the IOCs.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has approved an agreement reached between International Oil Companies operating in Nigeria with the Nigerian National Petroleum Corporation, NNPC.
The Commission, said for growth and development of the sector, it will tarry a little to harmonize previous agreements on development with the provisions in the Petroleum Industry Act.
With the development, oil majors would reconsider their exit plan following uncertainties created by the just passed PIA which provided a sort of counter provision on already signed Memorandum of Understanding (MoU) with the NNPC, for deepwater asset development.
It will be recalled that a 12-year dispute on the operational guideline with regard to Production Sharing Contract (PSC) in the deepwater space had cost parties over $9 billion in contingent liabilities.
However, the new PSC understanding is expected to yield $780 million in immediate revenues to government and unlock $10 billion investment.
At a stakeholder meeting with members of the Oil Producers Trade Section (OPTS), comprising of key major oil companies in the country, yesterday in Lagos,
Engr. Gbenga Komolafe, Commission Chief Executive (CCE), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said the PIA has a timeline of about six to twelve months to clear some grey areas and that the Commission is interested more in encouraging investment in the sector.
Komolafe, said the essence of the meeting was to clearly identify areas of concerns and challenges affecting their operations, as he assured them that all issues raised would be addressed as the PIA is subject to review so as to accommodate all inhibiting challenges.