IOCs not exiting Nigeria, says NUPRC

The Nigerian Upstream Petroleum Regulatory Fee has stated that no worldwide oil firm is leaving Nigeria regardless of their divestments.

NUPRC’s Chief Govt Officer, Gbenga Komolafe, described the latest divestments by IOCs within the oil sector as  “portfolio rationalisation”.

Komolafe stated on the just-concluded NAPE Convention in Lagos that portfolio rationalisation was not unusual in different jurisdictions, saying divestments give alternatives for extra investments and enhance native participation within the upstream sector.

“It’s also necessary to level out that no worldwide oil firm has left Nigeria, as we even see erroneously within the media. It’s good for us to notice that what the trade has skilled is portfolio rationalisation, which isn’t unusual in different jurisdictions. Divestment offers a possibility for extra funding and will increase native participation within the upstream,” he defined.

Komolafe emphasised that a number of the testaments to the fee’s regulatory transparency and credibility drive are the insurance coverage of the upstream asset divestment within the second quarter of 2024 to information the latest portfolio rationalisation course of.

He stated 4 divestments and 6 transactions obtained ministerial approvals throughout the interval.

“We’re glad to report that, based mostly on the clearly articulated framework, 4 divestments and 6 transactions have obtained ministerial consent and approval inside this era,” he pressured.

The NUPRC boss expressed confidence that “new asset holders will conduct operations in a vigorous and business-like method for optimum worth creation for enhanced power safety and sustainability.”

Talking on home crude provide to native refineries, he stated the fee is keenly conscious of its duty to make sure optimum crude provides to home refineries below honest and simply business phrases and consistent with the provisions of the Petroleum Business Act.

“Accordingly, the NUPRC has facilitated the insurance coverage of steering, templates and tips that present readability and entrench administration. We are going to proceed to implement the acts and foster collaboration amongst trade actors to deepen home power safety, availability of merchandise and affordability of power commodities in keeping with our market as enshrined within the PIA,” he pressured.

The CCE stated the NUPRC has additionally prioritised decarbonisation efforts via the Nigerian Gasoline Flare Commercialisation Programme, aiming to seize 250 million cubic ft per day of fuel flares and considerably scale back emissions.

He additionally famous that NUPRC’s focus extends to social duty, highlighting the profitable incorporation of 137 Host Group Improvement Trusts, fostering higher trade relations and inspiring peaceable coexistence between oil firms and native communities.

With this strategy, Komolafe expressed confidence in Nigeria’s potential to attain its power targets and urged trade professionals to assist NUPRC’s initiatives for a sustainable power future.

In alignment with Nigeria’s new Petroleum Business Act, Komolafe detailed a number of regulatory frameworks carried out by NUPRC to spice up transparency and encourage funding together with the issuance of 25 precedence rules, the Upstream Asset Divestment and Exit Framework to handle asset transfers, and a licensing spherical for 31 oil and fuel blocks meant to increase reserves and stimulate financial development.