NUPRC, NNPC collaborate on operational efficiency

THE Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC Ltd) have pledged to deepen collaboration in order to boost operational efficiency.

The Commission Chief Executive (CCE), NUPRC, Mrs Oritsemeyiwa Eyesan, who received the NNPC’s delegation at the Commission’s office in Abuja, said the agencies are working towards the same goal and direction for the government.

She said NUPRC is determined to reduce the cost of operations by harmonising fees and rents to make the oil and gas sector more competitive, adding that the commission was working closely with the Oil Producers Trade Section (OPTS) to address the multiplicity of fees and rents in order to improve competitiveness.

She said: “As major instruments of the government in the industry, we are aligned toward the same goal and I think this is pivotal and we must not lose this golden opportunity. We are working with the industry on harmonising the fees and rents that we charge. The whole idea is to harmonise and reduce it to the barest minimum so that we can reduce the cost of operations.”

Eyesan stated that the commission is working on enhancing measurement and hydrocarbon accounting.

“We have done the first phase which is to audit what we already have. The second phase, which will commence shortly, will be the real implementation of the metering standards and this entire programme will entail us having a data center and having all the meters in all our locations to standard,” she added.

She noted that the Host Community Development Trust (HCDT) has so far been a success, but maintained that there is a need to fully utilise the funds for its intended purpose as it would enhance community peace and improve the operating environment.

She, however, charged the NNPC to participate in the ongoing 2025 licensing round and deepen exploration.

The Group Chief Executive Officer (GCEO) of the NNPC, Engineer. Bayo Ojulari, emphasised the need for an improved relationship between the national oil company and the regulator.

Commenting Eyesan’s appointment, he said: “Your antecedents, your track records, your integrity, your forthrightness and clarity for those who have had the privilege of interacting with you, excite the industry.”

He said the NUPRC had continued to demonstrate exceptional leadership in terms of regulation and had been promoting transparency and shaping an enabling environment crucial for investment and operational excellence which is good for the industry.

While presenting a copy of the Gas masterplan to the CCE, Ojulari revealed that NNPC had recently launched the national gas master plan which would boost the country’s gas production, saying critical projects like the OB3 and the AKK gas pipeline have continued to progress.

While calling for the need to reduce the cost of operation in Nigeria to attract fresh investments and boost Nigeria’s energy security, the NNPC chief said this would not be possible without the NUPRC’s regulatory role.

“As the national energy company operating commercially under the Petroleum Industry Act, our success is intertwined with the regulatory stewardship which we are absolutely confident will be taken to the next level. We believe that deepening this partnership will greatly enhance our ability to unlock more value for Nigeria,” Ojulari said.