At the Nigeria Annual International Conference and Exhibition (NAICE) 2024 held in Lagos, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) outlined its strategy to revitalize the oil and gas sector amid increasing divestment. Chief Executive Officer Gbenga Komolafe revealed the commission’s commitment to fostering collaboration with industry regulators and stakeholders to attract and sustain investment in the sector.
Komolafe addressed attendees on the theme, “Petroleum Industry Value Chain Optimisation: The Inevitability of Midstream and Downstream Development.” He emphasized that the NUPRC is actively implementing the Upstream Asset Divestment Framework. This framework is designed to ensure that the exit of divesting entities is smooth and minimally disruptive, while also facilitating sustainable operations for new entrants into the sector.
The NUPRC is focusing on enhancing collaboration with sister agencies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to streamline operations across the petroleum value chain. This collaborative effort aims to deepen the end-to-end value in crucial areas of oil and gas operations.
Komolafe highlighted that a robust development strategy for the midstream sector is essential for growing the oil and gas industry in line with the Petroleum Industry Act (PIA). He stressed the importance of aligning domestic crude supply obligations and domestic gas delivery obligations to boost sector growth and ensure energy security.
“The optimisation of the midstream and downstream segments is not just an option but a necessity,” Komolafe stated. He underscored the need for concrete steps towards upstream decarbonisation while fostering a diversified economic base through effective midstream operations.
The NUPRC is also championing initiatives to advance upstream decarbonisation and carbon monetisation, aiming to sustain and attract investments while adhering to environmental, social, and governance principles. Komolafe expressed confidence in the commission’s efforts to stimulate sector activities and enhance domestic energy security.
In his remarks, Mele Kyari, Group Chief Executive Officer of NNPC Limited, emphasized the importance of developing infrastructure to support domestic gas utilization and refining capacities. He noted that the NNPCL is committed to operationalizing refineries, including supporting the Dangote refinery and other emerging refineries, to improve domestic supply and drive industry value.
Kyari reiterated that a robust midstream and downstream infrastructure is critical for the industry’s success, and NNPCL is dedicated to supporting businesses that contribute to the country’s energy sector.
As Nigeria navigates its energy transition, the NUPRC’s initiatives and collaborative efforts with industry stakeholders are poised to play a pivotal role in optimizing the petroleum value chain and ensuring a stable and efficient energy future for the nation.
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