A coalition of civil society Organisations led by Rising Up for a United Nigeria, RUN has said the regulations put in place by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC have helped in sanitising the oil and gas sector.
Laying emphasis on the reduction of crude oil theft and operational efficiency, the CSOs led by the convener of RUN, Solomon Adodo and the National Coordinator, Guardians of Democracy and Development Initiative, Igwe Ude-Umanta, said the leadership of NUPRC worked “tirelessly, noiselessly and profoundly to deliver creditably on their mandate.”
According to them, the reforms in the agency as well as its openness, clarity, ease of doing business and predictability of business outcomes had attracted more investors into the country.
“There are several regulations that have been introduced by NUPRC. These regulations are for improvement in industry standards and operational efficiency. This has been key to stability in the oil business environment and attracted massive productive partnerships. Some of the significant milestones recorded as a result include.
“A significant reduction in crude oil theft since the Commission conducted a comprehensive audit of crude oil theft and evaluated the integrity of upstream assets to determine the actual extent of theft in the industry; further measures were implemented to address crude oil theft by enhancing cargo declaration and upstream measurement processes.
“Additionally, enhanced regulations were put in place to combat crude oil theft thus resulting in a major boost to Nigeria’s crude oil production from below one million barrels per day to above 1.6 million barrels per day. Presently, Nigeria’s oil production and output is at an all-time high and the environment, most conducive for business. This has led to a reversal in oil investment decline”, they said.
“The Commission undertook a comprehensive industry-wide study aimed at reactivating inactive wells in Nigeria, unlocking 700 thousand barrels of oil per day. The NUPRC also developed a template for Domestic Crude Oil Supply Obligation (DCSO) to ensure sufficient and uninterrupted feedstock to all local refineries to serve Nigeria’s domestic petroleum needs.
“All existing crude handling agreements have undergone a comprehensive review aimed at bolstering transparency and fostering competitiveness in the process of crude evacuation. This initiative is already beginning to yield a reduction in both capital and operational expenditure.
“In the area of growth of reserves, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) issued its first Petroleum Exploration License (PEL) for a geophysical survey project aimed at acquiring approximately 56,000 square kilometres of 3D seismic and gravity data offshore in the Niger Delta, a feat which will place Nigeria in the frontlines in the comity of OPEC nations”, they added.
