NUPRC seeks upstream sector players support for smooth implementation of PIA

BBenjamin Umutemey

Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has solicited the support of the Oil Producers Trade Section (OPTS) for the smooth implementation of the Petroleum Industry Act (PIA).

Chief Executive Officer, NUPRC, Gbenga Komolafe, made the call at his maiden meeting with top OPTS members Wednesday in Lagos, said the collaboration will help address challenges in the sector and optimize production.

NUPRC was established following the signing of the PIA with the aim of optimising the sector’s contribution to national development.

The OPTS comprises 29 companies who are the major players in Nigeria’s oil and gas sector.

Acknowledging the OPTS as a critical stakeholder in the upstream sector of Nigeria’s oil and gas industry, Komolafe said, “The implementation of the PIA is very germain to the president and this current administration and he has given us a period of six to 12 months to begin to deliver some of the key deliverables.

“It is against this backdrop that I have decided to host this meeting in Lagos to reinforce my acknowledgment of your association and to solicit your collaboration as industry stakeholders.”

The implementation of the PIA, according to the NUPRC boss, is coming at a critical time when the global community is gradually moving from fossil fuels to cleaner energy.

According to him, this has resulted in funding challenges for exploration activities being faced by the companies.

He said the meeting was to familiarise the commission with the OPTS members and listen to the challenges hindering optimisation of key areas in the upstream sector.

“Permit me also to say that this is the first in the series of engagements with you as our vision is to build a 21st century regulator that will be fair, just and be a critical business enabler in the upstream petroleum sector.

“It is in this wise that we urge you all to join hands with us in building confidence in the industry for robust investment,” Komolafe said.

In his response, OPTS Chairman and Managing Director, Chevron Nigeria Ltd, Rick Kennedy congratulated Komolafe on his appointment, assuring him of the OPTS support and cooperation as he aims to achieve the commission’s mandate. 

Kennedy said the establishment of the commission forms a major milestone in the reforms being made in Nigeria’s petroleum sector, especially the passage of the PIA.

He, however, noted that the OPTS would need collaboration with the commission regarding some of the key timelines in the implementation of the PIA.

Kennedy said the areas included incorporation of development trusts for host communities, installation of flare meters as well as gas flare and monetisation plan.

He said the challenges faced by the companies were high operating cost, security, lengthy contract cycle, multiple levies and taxes, among others.