The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified that the recent reference to export permit denial was not a threat to legitimate industry players, but specifically directed at non-compliant operators who may seek shortcuts, and in breach of the law.
NUPRC, in a statement on Thursday quoted the Commission Chief Executive (CCE), Engr. Gbenga Komolafe, to have made the clarification during a meeting with major stakeholders in the nation’s oil and gas sector, in Abuja.
Recall that the Commission, two weeks ago, following the reports of diversion and inadequate crude supply to domestic refiners in Nigeria, warned that it would deny export permits for crude oil cargoes intended for domestic refining, if oil companies do not fulfil their domestic crude obligations.
The Commission insisted that any changes to cargoes designated for domestic refining must receive express approval from its Chief Executive.
Speaking during the Wednesday meeting, Engr. Komolafe emphasised that the government is committed to protecting the interests of investors but will not compromise on issues that could jeopardise energy security or undermine national interests.
The CCE reiterated the government’s stance on not interfering with product pricing, as long as prices remain reasonable and fair.
He expressed commitment to the willing-seller, willing-buyer option which aligns with international best practices and affirmed that government would support the upstream sector’s optimal functioning without resorting to price-fixing.
He assured that the Commission was at all times willing to positively address operational issues brought up by industry stakeholders so long as they would aid the growth of the sector and are in line with national interest.
In January, the Commission outlined a five-point agenda that would aid increased oil production in 2025. This includes effectively implementing initiatives to boost production by one million barrels, enhancing the transparency and accuracy of hydrocarbon measurement through metering and cargo regulations, digitalising upstream regulatory activities for better compliance, optimising unit costs per barrel to increase revenue and conducting licensing bid rounds to revitalise non-performing assets in line with the provisions of the Petroleum Industry Act (PIA) 2021.
The CCE also revealed that the Commission has developed a template to identify the needs of every participant within the value chain. This template aims to address gaps by leveraging the capabilities of different players, thus fostering collaboration, networking and operational optimisation.
Wednesday’s meeting was in line with the initiative, to identify and address the needs of stakeholders as they arise in the course of operation.
