PIA: NUPRC Targets Metering Efficiency, Lower Gas Flaring, Others With 7 New Regulations

The Nigerian Upstream Petroleum Regulatory Commission, (NUPRC), has signed seven new regulations, aimed at boosting regulations in the country’s upstream petroleum sector as well as giving effect to the Petroleum Industry (PIA) Act 2021.

Speaking at a ceremony to sign the regulations into law, the Commission chief executive, Engr. Gbenga Komolafe said the Nigerian Upstream Petroleum Measurement Regulations, 2023 will close the metering gap in upstream petroleum operations.

Engr. Komolafe explained that the regulation will also “encourage accelerated meter roll out in upstream petroleum operations; encourage the development of independent and competitive meters used in the upstream; attract private investment in the provision of metering services; provide for the regulation of the measurement of petroleum produced; ensure accurate measurement of petroleum as a basis for the calculation of petroleum revenue accruable to the government; and define requirements for the design, fabrication, manufacturing, testing, calibration, operation and maintenance of upstream metering equipment”.

The other six new regulations are: The Production Curtailment and Domestic Crude Oil Supply Obligation Regulations, 2023; the Frontier Basins Exploration Fund Administration Regulations, 2023; the Nigeria Upstream Decommissioning and Abandonment Regulations 2023; the Significant Crude Oil and Gas Discovery Regulations, 2023; the Gas Flaring, Venting and Methane Emission (Prevention of Waste and Pollution) Regulations, 2023; and the Nigeria Upstream Petroleum Unitization Regulations, 2023.

Speaking on the Production Curtailment and Domestic Crude Oil Supply Obligation Regulations, 2023, Engr. Komolafe explained that it would ensure that local refineries, including the 650,000 barrels per day Dangote Refinery, have enough crude to refine and supply to the domestic market.

According to him, the seven regulations signed and issued yesterday brings to 12 the total number of regulations so far gazetted, out of the 18 regulations initially identified as priority regulations.

He described this as a significant milestone achievement for the Commission in its continued stride towards the attainment of the goals of the PIA and the reformation of the upstream petroleum sector.

The CCE stated that all the regulations now 12 in number and the others to be soon finalised would serve as the key regulatory tool that would be deployed by the Commission in the discharge of its statutory functions under the PIA regime.

Komolafe noted that though the process of formulating the regulations was rigorous and strenuous, the outcome is a result of critical thinking, vigorous engagements with the industry stakeholders, careful evaluation, and hard work by the Commission’s Regulation development team.

He assured the industry of the commission’s continuous dedication to develop and issue policies that will create an enabling environment for growth and more investments in the Nigerian upstream oil and gas sector, and urged the support of all stakeholders in complying with the regulatory measures put in place by the NUPRC to ensure operations are

conducted in line with international best practices.

Also speaking at the event, the executive secretary of NEITI, Dr. Orji Ogbonnaya Orji insisted that currently the government can only estimate the volume of crude oil produced in the country as there was no accurate measurement mechanism in the sector.

According to him, NEITI “have been frustrated, over the years, that we produce yet we don’t have any idea how much exactly we are producing, because our metering and infrastructure are based on estimates, and we have continued to shout that we needed an agency that will stand strong, an ally, shoulder to shoulder with NEITI, to push this argument beyond limits”.

He explained that based on NEITI reports, from 2009 to 2020, “this country had lost 619.7 million barrels of crude oil, and we only tracked eight companies that were willing to volunteer data. 619.7 million barrels were lost either stolen, or not accounted for. Amounting to $46.16 billion, which if you convert to Naira in official exchange rate, will give you N16.25 trillion that Nigeria lost by crude”.