The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has called on both local and foreign investors in the industry to leverage the attractive fiscal incentives in the Petroleum Industry Act (PIA) for energy infrastructure development.
Commission’s Chief Executive (CCE), Engr. Gbenga Komolafe made the call in his presentation at the United Nations Climate Change Conference (COP 28) in Dubai, UAE.
Engr. Komolafe listed the incentives to include: zero-hydrocarbon tax for deep water developments, reduced royalty rates based on production and terrains, and tax consolidation provisions amongst others.
The NUPRC boss noted that “in the implementation of the PIA, the Commission is benchmarking its regulatory approaches with the best international standards targeted at achieving:
“Reducing Unit Operating Cost, Developing a Transparent Approach to Hydrocarbon Accounting, Attaining Operational Efficiency and Effectiveness in our Operations, Achieve Peace and Harmony in the Host Community Environment, Increasing Nigeria’s Oil and Gas Reserves and Production.
Reduction in Carbon Footprint and the Attainment of Net Zero Global Emissions Target, Create Sanity and Predictability”.
In addition, he said, the Commission has intensified efforts towards eliminating flared gas while arresting methane and other fugitive gas emissions, by commercializing forty-nine (49) flare sites through the Nigerian Gas Flare Commercialization Program (NGFCP).
Engr. Komolafe said, further investment opportunities are also available in ongoing and future licencing rounds for oil and gas blocks, seismic acquisition on a multiclient basis, development of deeper hydrocarbon opportunities, carbon markets, evacuation logistics, IT and surveillance infrastructure, etc.
According to him, “each of these areas provides a unique entry point for willing investors and are essential components of our national architecture for sustainable energy infrastructure development”.
He said, the COP28 programme was a major platform for Nigeria to showcase its commitment towards zero-emission by 2060.
“In this regard, as a Commission, we are happy to showcase at this forum that significant progress has been recorded in the implementation of the NGFCP.
“With the emergence of Awardees, the successful entities are progressing towards the conclusion of commercial agreements and commencement of project execution.
“This is a major win in Nigeria’s energy transition pathway. Upon completion, we estimate a reduction of about 500 MMscfd of flare gas, representing 50% of current flare disposition, which is equivalent to 6 Million tonnes of CO2 emission per year”, he informed.
The CCE also called on investors, multilateral organisations, international financiers, technical service providers, and partner entities to collaborate with the Commission and to enhance their support as flare-out projects are being consummated and developed.
“To this end, the Commission calls on all well-meaning Partners to deepen support for programme toward full value realization through: Technical support, Financing & funding, Collaboration for carbon credit earning framework as a major climate action for Nigeria, and Capacity Building”, he said.
