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  • Komolafe: Why NUPRC added anti-graft agencies to portal 

    Komolafe: Why NUPRC added anti-graft agencies to portal 

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday, revealed why it added anti-graft agencies to its portal from its inception.

    It is for them to follow up the activities of the commission and detect when unauthorized persons are interfering with the automated process.

    The measure, according to the Commission’s Chief Executive Officer, Engr Gbenga Komolafe, is to safeguard the national revenue which comes from the industry that is also the cash cow of the country.

    He made the disclosure at the International Anti-corruption Day in Abuja.

    The theme of the conference was “United Against Corruption: Building Integrity for a Sustainable Future.”

    He said: “Right from the outset, being that the upstream is the cash cow of the country. One of things we have done is that our processing are devoid of human interferences through automation and digitization, especially of licenses and process.

    “Voluntarily in trying to do this we try to put the other security agencies in our portal to ensure as we carry out our activities other relevant security agencies follow up.

     “Not only would they see, the could also feel. The advantage is that we made it clear to them that with what we have put in place it is now easy for them to be able to recognize whether the person coming to the terminal to load is actually permitted in the process or not. 

    “It will determine whether it is genuine or not or otherwise. The benefit is to safeguard national revenue.”

    Earlier, he said it has put measures in place to reduce corruption in the system.

    According to him,  the efforts are already yielding results, the country is seeing greater investor confidence and improved revenue inflows to the Federation Account. 

    He said: “Over the past years, the Commission has achieved significant milestones in the fight against corruption through various initiative and programs

    including: the implementation of the Oil and Gas Industry Service Permit (OGISP) portal, to reduce human interaction in NUPRC’s permit processes and consequently the incidence of bribery and inefficiencies.”

    Komolafe said the award of petroleum licenses and leases is through an open competitive bid process; the recently launched HostComply platform, to enhance the administration of the Host Communities Development Trusts (Hurts).”

    Read Also: NUPRC surpasses revenue target by 49 percent

    He said keying into the Independent Corruption Practices and Other Crimes Commission (ICPC’s) vision that Ministries, Departments, and Agencies (MDAs) must first address corruption within their organizations to combat corruption in Nigeria effectively, the NUPRC established its maiden Anti-Corruption and Transparency Unit, with its separate and dedicated budgetary line for its effective operation.

    Since its establishment, he said, the NUPRC ACTU has also played its role in establishing the NUPRC ethical norms that depict the values of the NUPRC and the wider society. 

    Komolafe said: “Some of the key activities of the NUPRC ACTU include: a. Creating awareness within NUPRC’s staff of NUPRC’s zero-tolerance for corruption by educating members of the ACTU and staff of the NUPRC through training, publications and banners; b. System study and reviews of NUPRC’s major regulatory activities such as the recently concluded Nigerian Gas Flare Commercialisation Programme; 

    and c. Encouraging whistleblowing among the Commission’s staff and stakeholders by establishing 

    whistleblowing channels such as complaint boxes and secure email.”

    He insisted that however, the battle is not one the NUPRC can fight and win alone. It requires the active participation of all stakeholders. Government Agencies must ensure strict enforcement of Anti-Corruption laws, Industry Operators must uphold ethical 

    practices in their operations, Civil society must remain vigilant, holding us accountable and every citizen must embrace integrity as a personal creed, refusing to condone or participate in corrupt practices. 

    Meanwhile, the guest speaker, Mr. Femi Falana said for the NUPRC to invite him to cross fertilize ideas, it shows it has nothing to hide.

    He said because of the enormous damage corrupt practices have been doing to the nation, there must be joint efforts to combat it.

    Falana said since this year’s Anti-corruption Day is dedicated to the youths, who have influence in the social media, the country could engage the young people to use the social media to launch a campaign against corruption. 

    He specifically urged the ICPC to mull the idea of the youths.

    He urged the ICPC and Economic and Financial Crimes Commission (EFCC) to go after the oil and gas companies that the Nigerian Extractive Industries Transparency Initiative (NEITI) 2023 audit report to pay $6 billion.

    He said the law has only provided that the National Assembly can only conduct enquiry on the government agencies or commissions.

    Falana said no committee has the power to invite the CEOs of government agencies without the resolution of the house.

    According to him, the court has already decided the cases. 

  • NUPRC surpasses revenue target by 49 percent

    NUPRC surpasses revenue target by 49 percent

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has surpassed its revenue target by 49 percent when global hydrocarbon producers are witnessing lower royalties and weak margins.

    The achievement is coming despite onslaughts on oil and gas investments due to the global push for energy transition.

    The revenue surge was disclosed at the public interaction hearing organised by the National Assembly (NASS) Joint Committees of Finance and Planning on the 2025–2027 Medium-Term Fiscal Framework (MTF) and Fiscal Strategy Paper (FSP).

    As of October 2024, the NUPRC had surpassed its revenue target by 49 per cent, signaling more revenues for the government to fund its deficits.

    The revenue performance follows NUPRC’s transformation of the country’s upstream sector using regulation to block leakages and open up the industry for massive investments despite the divestment of some oil and gas assets.

    The Petroleum Industry Act, 2021 established the NUPRC, which is headed by the pioneer Commission Chief Executive (CCE), Engr. Gbenga Komolafe.

    Read Also: Reps yet to conclude investigation on non-remittance by NUPRC

    Since its establishment, Komolafe has consistently led the organisation to achieve and surpass the set revenue target.

    Reacting to the development, Komolafe said the commission is “poised to achieve more through various ongoing initiatives such as the project one million per day initiatives, bid round, drill or drop and other mandates as set by the PIA.”

    Recall that on October 22, 2024, the commission launched the one million barrels per day production initiative aimed at boosting daily production to over 2.7mbpd.

    Komolafe also led the launch of bid round for oil blocks in at the Offshore Technology Conference in Houston, Texas, USA, in May 2024, which has attracted investors like TotalEnergies among others.

    Another initiative that has fueled revenue collection is the drill or drop initiative, which mandates producers to drill a well within a specified time frame or forfeit the license area.

    NUPRC explained how it operates transparently in line with the framework that established the Federation Accounts, which has seen more revenues flow into government coffers in the last three years.

    “We are a patriotic and transparent regulator, and the commission is committed to serving the nation effectively. We owe that duty to the nation in the sense that if you have a regulator that is not transparent, that regulator will send the wrong signal to the international community,” Komolafe said in an interview with journalists recently.

    He added: “We are serving and helping the country to recover revenue in terms of royalty and it is just one aspect of our job and why it is important to situate that task in our statutory mandate is for checks and balances. It creates an unbroken chain of transparency for regulators to be responsible by helping the nation recover revenue.”

  • Reps yet to conclude investigation on non-remittance by NUPRC

    Reps yet to conclude investigation on non-remittance by NUPRC

    The Chairman of the Public Accounts Committee, Hon Salam Bamidele, has said contrary to reports in some sections of the media about the alleged revenue leakages by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Public Accounts Committee of the House of Representatives is yet to reconcile figures with all the parties involved.

    Bamidele, who spoke to newsmen on Friday in Abuja, was responding to reports in some sections of the media that the House of Representatives had issued a 96-hour ultimatum to the Chief Executive Officer of NUPRC, Engineer Gbenga Komolafe, over allegations concerning revenue leakages totaling N32,151,775,466.87 accrued to the coffers of the Commission on behalf of the Federal Government between 2015 and 2022.

    The report had claimed that during the review of the documents submitted to the Committee, the lawmakers alleged that the sum of N909,392,169.74 had been transferred directly to private accounts held with Deposit Money Banks without adhering to TSA protocols.

    The report had also claimed significant discrepancies, including N15,476,269,397.10 in transactions listed in Remita that were absent from the NUPRC data set, as well as the sum of N6,332,212,384.25 in transactions from the NUPRC data set that did not appear in Remita.

    But speaking on the development, Bamidele said the committee had yet to take a final decision as it is an ongoing investigation.

    He said that since investigations have not been concluded, all parties would meet by Monday for reconciliation of figures.

    Read Also: CBN, Reps clash over old naira notes

    Bamidele said, “It is an ongoing investigation and continues on Monday 4th where all parties will meet for reconciliation of figures.”

    Speaking on the allegations, NUPRC’s spokesperson, Olaide Shonola, said the Commission has not been given the opportunity to present its figures before the Committee to warrant conclusions being circulated in the media.

    The spokesperson added that any such conclusion about revenue leakage is presumptuous, disparaging, and unfair to the regulator.

    Shonola said: “The NUPRC has not had the opportunity to present his figures before the Committee to warrant conclusions being circulated in the media.

    “Therefore, any such conclusion about revenue leakage is presumptuous , disparaging, and unfair to NUPRC.”

  • Oil spillage: Ministry disagrees with NUPRC over approval for barging activities

    Oil spillage: Ministry disagrees with NUPRC over approval for barging activities

    The Ministry of Environment has disagreed with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over the approval to carry out barging activities for an oil company Aiteo E and P, operating in Nembe in Bayelsa state.

    Representatives of the company at a hearing by the House of Representatives Committee on Environment said it got approval from NUPRC to barge, which means transporting crude from their facility in Nembe through the Brass River out to the Atlantic Ocean.

    The hearing was to probe the environmental impact of transporting crude oil by mega seagoing vessels from Nembe Creek Trunk to offshore crude oil storage in the Atlantic Ocean by Aiteo E and P, as well as the oil spillage in Olugboboro Community in Southern Ijaw Bayelsa State from Nigerian Agip Oil Company (now Oando Oil Ltd) facility.

    Chief Operating Officer, Aieto, Ewarezi Useh Aieto said it was a temporary measure that started last year borne out of necessity due to the activities of vandals on the pipelines.

    However, the representative of the Minister of Environment, Dr Musa Gashau, said the approval given to the company to operate did not include barging activities.

    Chairman of the committee, Pondi Gbabador, queried the inconsistencies in the approvals between government agencies over the same issue.

    Useh said they had no other option else they would shut down production.

    “Barging was a very difficult decision for not just us but for the joint venture. It was a joint venture decision between Aiteo as an operator and NNPCL as an alternative way of getting our crude out. We got to a point where we stopped production for up to two years due to the activities of vandals. It was due to incessant vandalization of the crude transport line from the facility in November. We could not get out the crude to the markets. What is affecting the production of the country today is such vandalization and incessant theft of facilities.

    “So barging was out of necessity not just for the survival of the company but a national issue as the only way we could crude out of their facility to the market for the Nigerian people. Based on that, the joint venture agreed that we should go ahead as an interim measure pending when the security is restored and we can go back to full pipeline measure.

    “We had to go ahead to look for approval from an alternative evacuation route and it was a process of evacuating the crude from Nembe to Bonny which is about a 100km line.

    “Various scenarios were put together and it took us two years of various scenario analysis and work done with the NNPCL. In the interim, it was a survival situation. All the necessary applications were made from the Minister of Petroleum to the regulator, NUPRC to various bodies for us to commence barging as an interim measure which is what we started.

    “We started last year and this was to ensure we got back to full production. It is our hope that the security agencies will address the problems because the best method is the pipeline method. We would return to pipelines as soon as possible. Barging would not be an endless process but just in the interim to ensure that for now there is full production as an interim measure for the good of the country and stakeholders. That is where we are and that is what has brought us to where we are.

    At the time agreed for the barging, the Aiteo woman said the Environment Impact Assessment, which was approved has a lifespan of five years and it was gotten in November 2020.

    She said it was still valid.

    However, the Ministry of Environment insisted that Aieto does not have valid approval to carry out its barging activities in Nembe.

    He said: “The Eia approval did not cover barging. Records available to the Ministry indicate the approval only covered the installation of a 54km crude oil pipeline and a 14 storage platform with a capacity of 3.5 million barrels. It did not cover barging.”

    Aiteek woman said for the agreement with the Ministry of Environment, barging was not part of the agreement, but the NUPRC which is also a regulator went through all the whole hog of getting all the requirements for barging crude.

    “From the housing workshop to the safety case to all that needed to be done to have all the environmental considerations made, NUPRC has our approval for that.

    Even as we barge till date before any barge moves out, we need to get clearance from NUPRC that also checks that environmental considerations before the barged is moved,”

    Responding to enquiries, the manager of health safety and environment, Aiteo, Augustina Amaka Bisong, said their activities do not damage the environment as all considerations have been made to address such.

    She said there was no spillage in the entire process.

    Useh added: “We have an operations tunnel so there’s no spillage in the entire process. Any spill that you would have NOSDRA is here and would tell you and give you the dossier of the spills we have around. 99 percent of them are third-party infractions from mostly vandals and thieves, who have come to steal crude. Like I said, it is a sorry situation. No operator sets out to want to be a barging operator. It is a herculean task and it is extremely difficult. It is a logistics nightmare. It is a child of necessity.

    “Barging is routeway through the Brass River from the facility. It’s a ship and once it’s loaded, it’s loaded until it gets to the Atlantic Ocean. There are no spillages on the way.”

    He said they are supposed to be a 120, 000 barrels producing facility but because of the theft and even with the barging, they are struggling to do between 30, 000 and 40, 000 right now.

    “It got to a point that a point we had to stop operations for almost two years. Due to the activities of vandals. These are responsible for the poor crude production numbers of the country,” he said.

    The Director General of the National Oil Spill Detection and Response Agency (NOSDRA), Engr Chukwuemeka, said there has been no incident of oil spillage since the operation commenced.

    However, the committee expressed reservations about the claim that their activities did not have adverse effects on the environment.

    It resolved to embark on an oversight to have first-hand information about the true state of things for further necessary legislative actions.

    Also, the Deputy Manager of Environment Oando, Akuduro Philip, called for legislative support to address the issue of oil theft and vandalism which he said have far-reaching consequences.

    Read Also: Ogoni oil spillage: Hyprep trains 5000 women, youth on cleanup of Ogoni land

    He said they operate in four states including Bayelsa and statistics show that about 90 percent of all their spill events are caused by third-party interferences on their facilities.

    He further said particularly in Bayelsa State 80 percent of spillage is within Southern Ijaw, where Olugboboro Community is.

    “And we are asking for the intervention of this honourable house in whatever way. Because it’s not an ordinary statistic that a country that used to produce up to 2.2 million barrels is now lagging by less than 1.5 million barrels. That’s not a fictitious record. It is caused by the active operation of vandals across oil facilities, especially those like Oandu that are operating in land and swamps,” he said.

  • NUPRC disburses N200b to host communities projects

    NUPRC disburses N200b to host communities projects

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it has incorporated 137 Host Communities Development Trustees (HCDTs) and disbursed N200 billion.

    It said there are 198 ongoing development projects in the communities including Akwa Ibom State.

    Head, Public Affairs and Corporate Communication, Mrs Olaide Shonola, made this known in a statement.

    The statement was a rejoinder debunking a story that the commission delays in funding development projects in host communities in Akwa Ibom State.

    She said: “It is worth mentioning that NUPRC has diligently superintended the incorporation process which has resulted in the full incorporation of one hundred and thirty-seven (137) HCDTs with over N200 billion disbursed. 

    “One hundred and ninety-eight (198) developmental projects are going on across host communities, Akwa Ibom communities inclusive.”

    Read Also: Why it is important to preserve cultures in Nigeria – Vector

    NUPRC added that some yet-to-be-funded Trusts are undergoing due diligence and various validation processes. 

    The statement said the NUPRC is fully committed to the implementation of the Host Community Development Trust in line with Chapter 3 of the Petroleum Industry Act (PIA, 2021), to ensure the objectives of fostering sustainable prosperity within the host communities as well as the provision of direct social and economic benefits from petroleum operations to host communities are well achieved.

    The Commission has been working assiduously to ensure that all host communities that fall within the ambits of the law benefit from the HCDTF and have established mechanisms to safeguard the funds while ensuring accountability and transparency in the disbursement and management.

    The statement reads in part: “The Commission reaffirms the commitment and ongoing efforts of the NUPRC in collaboration with the Oil and Gas operators(Settlors) in the region and beyond. We can confirm that the Ibeno, Mbo and Esit Eket communities are well covered in the HCDTs implementation process. Relevant Settlors have established Host Community Development Trusts for these communities, ensuring that funds are released and community development plans are actively underway.

    “Key Achievements include: The Commission has made significant strides in incorporating 137 Host Community Development Trusts across the region with over 200 billion naira disbursed to the trusts. 

    “A total of 198 projects have been initiated, focusing on various aspects of community development including education, healthcare infrastructure, and economic empowerment.

    “Alternative Dispute Resolution centers are established in Bayelsa and Lagos at the NUPRC’s National Oil and Gas Excellence Center.

    ” ADR mechanisms include mediation and arbitration providing a structured process for resolving conflicts without resorting to litigations. The ADR also supports the amicable and efficient resolution of disputes, preserving relationships and reducing the time and cost associated with legal proceedings. “To make for easy resolution of grievances for the ultimate peaceful coexistence of Settlors with the Host communities.

    “NUPRC has launched the HostComply portal, an industry data automation portal for warehousing of all HCDT implementation and operationalization processes and data for ease of access, inclusivity, fairness, accountability, transparency and compliance with regulation and the law.”

  • Nigeria may face gas supply crisis, says NUPRC

    Nigeria may face gas supply crisis, says NUPRC

    Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, an engineer, yesterday warned that the country may face a gas supply crisis with a potential shortfall of 3.1 billion cubic feet per day (bcf/d) by 2030 in the ‘Base Case Demand and Supply’ scenario.

    Komolafe, made this known yesterday while speaking in Lagos yesterday at the 2024 Annual Conference of the Association of Energy Correspondents of Nigeria (NAEC). The conference had as its theme: Gas as Energy Transition Fuel: “Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics.”

    The CCE, who was represented at the event by the Regional Director, Lagos Office, Paul Osu, noted that between 2020 and 2030, demand for gas was expected to grow at a compound annual growth rate of 16.6 per cent per annum.

    He further disclosed that natural gas production was projected to increase from 8.0 bcfd in 2020 to 12.2 bcfd in 2030, which will be driven by major projects such as NLNG Train 7 and Train 8; Nigeria/Morocco pipeline, Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline Project, among others in the ‘high case supply’ scenario.

    But notwithstanding this projection, Komolafe said this would not meet the ‘high case demand’ scenario projected at 22.2 bcfd in 2030 because in just a decade, the demand landscape could change exponentially, especially if the power sector challenges are resolved.

    “As the upstream industry regulator, the NUPRC, through the instrumentality of the Petroleum Industry Act, 2021 (PIA), is at the forefront of the drive for interventions required to realise the Decade of Gas by enabling investment in cleaner hydrocarbon development through gas development as well as driving programmes such as Nigerian Gas Flare Commercialisation Programme (NGFCP) for flare elimination and gas monetisation to foster energy sufficiency, eliminate wastages while simultaneously attending to the urgency of reducing carbon emissions.

    According to Komolafe, the significance of this is that more gas would be available for domestic utilisation as Liquefied Petroleum Gas (LPG), feedstock for power generation plants, fertiliser plants and petrochemicals adding that each of these areas provides a unique entry point for willing investors.

    Read Also: Tinubu orders NIWA to investigate Niger, other boat mishaps

    He said the global energy transition was not just about technology and markets adding that it is deeply political. As a member of the global community, Nigeria’s energy future faces three interwoven challenges or trilema of finance, energy security, and international politics.

    Komolafe however said that the federal government and the Ministry of Petroleum Resources had embarked on a transformative agenda that would align with the most stringent global challenges in navigating these challenges.

    For instance, he explained that the recent Presidential Executive Orders issued in March had been very complementary to the Petroleum Industry Act (PIA), 2021, in improving the efficiency of Nigeria’s oil and gas sector and enhancing its global competitiveness for higher rate of return on oil and gas investments. He said that despite the challenges posed by the climate calls, there was the confidence that investors would leverage sustainability mandates in the Petroleum Industry Act (2021) as well as the generous fiscal incentives.

    Buttressing Komolafe’s submissions, the Chief Executive Officer, Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouq Ahmed, who was represented by Director, Public Affairs, George Ene Ita, regrets that despite the huge gas utilisation deficits in the country, Nigeria still flares about 2.5 billion cubic feet of gas daily.

    He was emphatic on the need and urgency for the country to develop a robust gas sector not only to secure the domestic energy needs, but also position the nation as a reliable energy supplier for neighbouring countries, which will lead to enhancing regional energy security and reduce the dependency on oil.

    “This wasted resource could generate enough electricity for our energy needs. The Decade of Gas initiative seeks to end this waste, ensuring that by 2030, has contributed significantly to our energy mix, adding up to 5,000Mega Watts (MW), to the national grid and reducing our reliance on imported fuels. As we invest in gas infrastructure, we must also ensure we diversify our energy sources and reduce dependency on any single fuel,” Farouk said, while assuring that the NMDPRA through the PIA and regulations, the Authority is creating a predictable framework for investors, ensuring fair pricing and encouraging competition.

    In similar vein, the Chairman of the conference and Group Managing Director, Rainoil Limited, Gabriel Ogbechie, said although the country is blessed with abundant natural gas reserves, yet, it stands at a crossroad of opportunities and challenges.

    According to him, with the recent removal of petrol subsidy, there is a growing urgency to scale up gas alternatives, offering clean, affordable energy solutions for the nation, energy security, and building a resilient energy system.

    “We need to continue to attract and provide investment, particularly in green financing to develop our gas infrastructure; we need to strengthen the policy frameworks that support the scaling of CNG and LPG initiatives for both transportation and domestic use,” he said.

  • NUPRC secures over N60b, $100m for community fund

    NUPRC secures over N60b, $100m for community fund

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has successfully secured over N60 billion and $100 million for the oil and gas host community development trust fund.

    Commission Chief Executive of NUPRC, Gbenga Komolafe disclosed this during the inauguration of the Body of Neutrals at the Upstream Alternative Dispute Resolution (ADR) Centre in Lagos.

    Komolafe emphasised the commission’s ongoing efforts to effectively implement the Petroleum Industry Act’s robust provisions.

    He said that the funds were intended to add value to host communities and facilitate a conducive operating environment for industry operators, aiming to optimise the nation’s hydrocarbon resources.

    However, Komolafe noted that despite these efforts, challenges persist, adding that disputes within host communities often hinder the effective use of these funds.

    He explained that conflicts and legal battles among community members could delay the deployment of funds, exacerbating issues in an already strained judicial system.

    He stressed the importance of alternative dispute resolution methods, which offer faster, fairer, and less adversarial solutions to industry disputes.

    Read Also: Divestment of NAOC to Oando in line with PIA, says NUPRC

    According to Komolafe, these methods not only benefit the parties involved but also alleviate the burden on the judicial system.

    “Our approach is both inclusive and adaptable, tailored to the unique needs of the oil and gas sector.

    “Whether through mediation or expert determination, our centre is equipped to handle disputes of varying complexities and scales, ensuring respectful and supportive assistance to all involved,” Komolafe said.

    The establishment of the Body of Neutrals marks a significant advancement in providing effective and cost-efficient dispute resolution services.

    Komolafe emphasised that this centre represents a departure from traditional litigation, which is often marked by delays, high costs, and increased conflict.

    “Our Alternative Dispute Resolution Centre aims to streamline dispute resolution through mechanisms like mediation and conciliation. Our goal is to offer a quality, cost-effective, and timely resolution process,” he said, adding that the funds for host community development were managed directly by the communities through their elected trustees, without government interference.

    According to him, the structure is designed to ensure effective use of the funds, fostering a harmonious environment and supporting national production goals.

    “The expectation is that these funds will promote shared prosperity and create a peaceful operating environment, which will, in turn, support optimal production and benefit the federation’s revenue,” Komolafe added.

    Commission Secretary and Legal Adviser, Mrs Olayemi Anyanechi, praised the inauguration as a significant milestone.

    She said that the Body of Neutrals would ensure fairness and impartiality, providing a platform for equitable dispute resolution.

     “This event signifies our commitment to justice and equity. The Body of Neutrals will set new standards in dispute resolution, reflecting our dedication to ethical excellence and our long-term vision for the centre,” she added.

    She expressed confidence that the centre would address conflicts among host communities and positively impact the industry.

  • NUPRC, INFOSYS tinkers collaboration on dititisation, automation of regulatory processes

    NUPRC, INFOSYS tinkers collaboration on dititisation, automation of regulatory processes

    Determined to ensure transparency and greater autonomy in its operations, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said it is exploring ways of collaborating with Infosys of India. A delegation of the NUPRC led by its Chief Commission Executive (CCE), Gbenga Komolafe, an engineer, had recently embarked on visit to the headquarters of Infosys in Bengaluru, India.

    Infosys, a global information system technology firm with about 320,000 employees and about $18.6 billion annual turnover provides support and services to the major oil companies, national oil companies and service companies in the petroleum sector as well as other sectors such as aviation, finance among others.

    Komolafe, in an exclusive chat with The Nation at the weekend, explained that the collaboration will be extremely beneficial to the country as it will provide the much needed technology especially needed for the metering of the well heads and others needed for the oil sector. According to him, oil firm like Saudi Aramco have enjoyed the services of Infosys and the results are seen in their operations.

     “We are focused on exploring how Infosys’ cutting-edge technological solutions could support the Commission in achieving its regulatory mandate under the Petroleum Industry Act (PIA) 2021. Central to the discussions were strategies to digitalize and automate key regulatory processes, streamline hydrocarbon accounting, and ultimately plug revenue leakages to enhance government revenues,” Komolafe said.

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    In a statement later issued by the Commission, komolafe’s meeting with the Chairman of Infosys, Nandan Nilekani, also centered on leveraging technology to drive transparency, efficiency, and accountability in the petroleum sector.

     “The NUPRC Chief Executive articulated a clear vision for how digital solutions could revolutionise hydrocarbon management, ensuring accurate accounting and regulatory oversight. Mr. Nilekani, renowned for his role in India’s digital transformation, expressed his alignment with this vision, offered Infosys’ expertise in automation and data-driven solutions to support NUPRC’s goals.

     “The visit marked the beginning of a potential partnership aimed at modernising the Nigerian upstream petroleum sector, with Infosys positioned to provide cutting-edge solutions tailored to the unique challenges faced by the NUPRC. Both parties are committed to exploring further collaborations to enhance regulatory efficiency, boost revenues, and establish Nigeria as a global leader in petroleum resource management,” the statement said.

    Why partnership important for business growtn, by SystemSpec ‘s founder (fifth lead)

    Collins Nweze

    Founder, SystemSpecs, John Obaro has emphasised the importance of business partnerships, advising that successful collaborations require well-defined agreements and a mutual understanding in spirit.

    He spoke at the Nigerian-British Chamber of Commerce (NBCC) Sharing Experience Series 2.0. The event, themed “Build to Last: Deploying Technology as a Business Enabler,” brought together industry leaders, entrepreneurs, and professionals to discuss the role of technology in creating sustainable businesses.

    The NBCC’s “Sharing Experience Series” is a bi-annual program designed to inspire and empower the next generation of business leaders. It provides a platform for budding and accomplished professionals to learn from the personal journeys, challenges, and successes of leading men and women such as Obaro, who have paved the way in various sectors in Nigeria and demonstrated resilience, innovation, and leadership.

    According to Ray Atelly, President and Chairman of Council, NBCC, the series was initiated to showcase the stories of individuals who have succeeded through hard work and integrity.

     “There are perhaps a few John Obaros in this audience, and some watching from their offices today, who will be inspired to continue the cycle of leadership and innovation. Our mission is to keep producing leaders, captains of industry, and people who can keep the flag flying despite the challenges we face in Nigeria today,” the President remarked.”

    Obaro credited his early partnership with Systems Union as a critical learning experience that helped SystemSpecs navigate the Nigerian market and establish a strong brand presence. “Partnerships are essential, but you must ensure that your agreements are solid and that both parties share the same vision,” Obaro advised.

    On innovation, Obaro highlighted the importance of fostering a culture of creativity within organisations. He stressed the need for leadership to embrace innovation and encourage diverse perspectives. “We have always had a diverse range of people, and we encourage them to think creatively and take risks. This culture of innovation has been deeply entrenched in our people, allowing us to remain at the forefront of technological advancements,” he said.

    Obaro also addressed the challenges of introducing new technology in a market resistant to change. However, he noted that today’s acceptance of software automation demonstrates how far the tech industry in Nigeria has come, thus emphasising the need for resilience and adaptability.

    Integrity was another cornerstone of Obaro’s message. He said: “Integrity is not just a banner; it is something you must live by and practice. Cutting corners may yield short-term gains, but it will never lead to lasting success”. Consequently, Obaro highlighted the critical role corporate governance plays in ensuring the longevity and resilience of an organization. He explained that a formidable framework for ethics and compliance is fundamental not just for maintaining legal standards but for embedding a culture of integrity and accountability.

    Furthermore, Obaro noted that employees are the real engine of any company. “Your employees must believe in you,” he remarked. He stressed the importance of fostering strong working relationships with employees, moving beyond a master-servant dynamic. While such a dynamic might work in the short term, Obaro pointed out that building a cohesive, loyal team is essential for creating a lasting enterprise. A committed and well-aligned team, he concluded, is the foundation of long-term success in any organisation.

    Obaro offered valuable insights into entrepreneurship, advising aspiring business owners to understand their strengths and collaborate with others to complement their weaknesses.

     “Some people are better suited to managing existing businesses, and that’s perfectly fine. If you’re looking for money or accomplishments, entrepreneurship is not the only way,” Obaro said.

    As Nigeria and the world move further into the digital age, Obaro noted the huge potential of Artificial Intelligence (AI) to transform industries and the necessity for Nigerian businesses to scale their operations globally. He advocated for a proactive approach to learning and adapting to new technologies to remain competitive in the global market.

    In discussing the future in Nigeria, he said entrepreneurship could soon take centre stage and urged participants to invest in understanding AI and commit to continuous learning to stay ahead.

    He also emphasised the growing importance of cybersecurity, noting that the consequences of poor data management could be devastating for any business. “You need a team that’s always monitoring and preparing for potential threats. The reputational damage from a breach is immense,” he cautioned.

    In closing, John Obaro emphasised the importance of leadership vision, fostering a culture of innovation, and the need for collaboration within organisations. He encouraged leaders to focus on long-term impact, driven by integrity.

    He also reminded entrepreneurs to always study the market, identify niches, and surround themselves with people who share their vision. “The Nigerian market is huge, and we often underestimate it. Be sure you have a strong foundation before you leap onto the global stage,” he advised.

    The session was a resounding success, leaving attendees inspired and equipped with practical insights on building businesses that last, using technology.

    Akin Osuntoki, Chairman of the Membership Committee (NBCC), praised Obaro for his profound impact and deep-rooted commitment to the nation, saying, “Dr. Obaro is a Nigerian asset – born in Nigeria, educated in Nigeria, produced in Nigeria. SystemSpecs, Remita, and all the subsidiaries started as a Nigerian project. The intersection between SystemSpecs and Dr. Obaro is what you have been able to create with your colleagues, and I think that is just exceptional.”

    Obaro’s perspective highlights the critical role that Nigerian business leaders must play in navigating the fast-paced world of technological advancements. By embracing innovation and actively leading the integration of technology within their companies, leaders can turn potential challenges into opportunities for growth and long-term success.

  • NUPRC: oil production rises by 33,698bpd

    NUPRC: oil production rises by 33,698bpd

    Nigeria’s crude oil and condensate production rose by 33,698 barrels per day (bpd) to hit 1.53million barrels per day (mb/d) in July 2024.

    This was contained in the “Oil Production Status Report,” which the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) released yesterday.

    The report, which was that of Crude Oil and Condensate Production July 2024, recalled the country’s oil and condensate production was 1.50mb/d in June 2024.

    NUPRC said in May 2024, Nigeria’s oil and condensate output was 1.4mbd while that of April was 1.44mbd.

    The report added that in March, February and January 2024, the country produced 1.43mbd; 1.53mbd; and 1.64mbd respectively.

    Read Also: Vandals of Renewed Hope: Ruling class, journalists as saboteurs

    Nigeria, according to the Commission and its state-owned Nigerian National Petroleum Company Limited (NNPCL), has the capacity to produce 2mbd in 2024, a target it is currently battling to accomplish.

    Major drawbacks from hitting the targeted output have always been crude oil theft and vandalization of pipelines.

    On Tuesday, NNPCL Group Chief Executive Officer, Mr. Mele Kyari, called on the military to sustain the war against crude oil theft and pipeline vandalism, saying the current onslaught against the menace has yielded improved growth in the nation’s crude oil production.

    Kyari made this appeal when he received in audience the Chief of Defense Staff, General Christopher Musa, who led senior military officers on a courtesy visit to the NNPC Towers in Abuja, on Tuesday.

    NNPCL Chief Corporate Communications Officer, Mr. Olufemi Soneye, who made this known in a press statement, quoted Kyari as saying, “I personally call for enhanced and sustained security engagement. This is because we have reached a new peak in production that we haven’t seen in the last three years.

     “This is clearly related to the sustained efforts by the armed forces and other security agencies to protect our critical assets, particularly the pipeline infrastructure in specified areas where we are working closely with these agencies. We are already seeing the results transforming into increased production.”

    The GCEO, who commended General Musa and his team for their unwavering commitment to securing the nation’s critical hydrocarbon assets especially in the Niger Delta region in recent months, emphasized that these achievements are not only crucial to Nigeria but also to the global energy community.

    He expressed confidence that the CDS and his team will deliver on the Presidential mandate to mitigate security-related challenges affecting the nation’s crude oil production.

    “Components of this effort that depend on security are being effectively managed by you. Your coordinated and focused response is paving the way for improved security engagement, particularly in the Niger Delta,” he said.

    Earlier in his remarks, General Musa said the visit was intended to introduce the Monitoring Team to the NNPC Ltd, which will be responsible for interfacing with the Company and other stakeholders in the oil-producing regions to secure the nation’s critical hydrocarbon infrastructure.

    While pledging commitment towards improving security and the performance of his troops, the CDS said the military will sustain the onslaught and analyse the troops’ capabilities to enhance their performance and bolster productivity.

    He stressed the need to ramp up production for a prosperous economy and reassured collaboration with intelligence agencies, private security, state governments and host communities for enhanced performance.

  • NUPRC: Oil production soars by 33,698bpd in July

    NUPRC: Oil production soars by 33,698bpd in July

     …hits 1.53mb/d

    Nigeria’s crude oil and condensate production rose by 33,698 barrels per day (bpd) to 1.53 million barrels per day (mb/d) in July 2024.

    This was contained in the “Oil Production Status Report,” which the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) released on Wednesday.

    The report, which was that of Crude Oil and Condensate Production in July 2024, recalled the country’s oil and condensate production was 1.50mb/d in June 2024.

    NUPRC said in May 2024, Nigeria’s oil and condensate output was 1.4mbd while April’s was 1.44mbd.

    The report added that in March, February, and January 2024, the country produced 1.43mbd; 1.53mbd; and 1.64mbd respectively.

    According to the commission and its state-owned Nigerian National Petroleum Company Limited (NNPCL), Nigeria can produce 2mbd in 2024, a target it is battling to accomplish.

    Major drawbacks from hitting the targeted output have always been crude oil theft and vandalization of pipelines.

    Only on Tuesday, NNPCL Group Chief Executive Officer, Mr. Mele Kyari, called on the military to sustain the war against crude oil theft and pipeline vandalism saying the current onslaught against the menace has yielded improved growth in the nation’s crude oil production.

    Kyari made this appeal when he received in the audience the Chief of Defence Staff, General Christopher Musa who led senior military officers on a courtesy visit to the NNPC Towers in Abuja, on Tuesday.

    NNPCL Chief Corporate Communications Officer, Mr. Olufemi Soneye who made this known in a press statement quoted Kyari as saying, “I personally call for enhanced and sustained security engagement. This is because we have reached a new peak in production that we haven’t seen in the last three years. This is clearly related to the sustained efforts by the armed forces and other security agencies to protect our critical assets, particularly the pipeline infrastructure in specified areas where we are working closely with these agencies. We are already seeing the results transforming into increased production.”

    The GCEO, who commended General Musa and his team for their unwavering commitment to securing the nation’s critical hydrocarbon assets, especially in the Niger Delta region in recent months, emphasized that these achievements are not only crucial to Nigeria but also to the global energy community.

    Read Also: Enforce PIA Act, Dangote urges NUPRC

    He expressed confidence that the CDS and his team will deliver on the Presidential mandate to mitigate security-related challenges affecting the nation’s crude oil production.

    “Components of this effort that depend on security are being effectively managed by you. Your coordinated and focused response is paving the way for improved security engagement, particularly in the Niger Delta,” he said.

    Earlier in his remarks, General Musa said the visit was intended to introduce the Monitoring Team to the NNPC Ltd, which will be responsible for interfacing with the Company and other stakeholders in the oil-producing regions to secure the nation’s critical hydrocarbon infrastructure.

    While pledging commitment towards improving security and the performance of his troops, the CDS said the military will sustain the onslaught and analyze the troops’ capabilities to enhance their performance and bolster productivity.

    He stressed the need to ramp up production for a prosperous economy and reassured collaboration with intelligence agencies, private security, state governments, and host communities for enhanced performance.

    “Working in silos won’t give us the best results. I want to assure you that we will collaborate with the necessary stakeholders to achieve our set targets as mandated by Mr. President.”