The upstream sector of the oil and gas industry can expect 13 new regulations from the Federal Government in the next few weeks.
According to The Punch, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, made this announcement on Tuesday during the Nigerian International Energy Summit in Abuja.
In addition to the six regulations recently implemented by the agency, Komolafe stated that more regulations would be introduced.
While he did not provide specifics on the new regulations, he indicated that their purpose is to prevent the oil and gas sector from being negatively impacted.
In his words, “I beg to correct the notion that the commission is running the upstream sector with regulations that were not participatory. Apart from the six introduced some weeks ago, some fresh 13 regulations will also be introduced in about two weeks’ time.
“Our regulations have carried everyone along to ensure that the sector is not strangulated. We also ensure that our regulations are in conformity with the government’s energy transition plan.”
It was reported that Komolafe responded to accusations made by earlier panel speakers at the summit that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, as well as the NUPRC, were introducing regulations that could deter a healthy business environment in the sector.
He mentioned that the commission has established a carbon department to eliminate gas emissions, in line with Nigeria’s energy transition.
The Vice President Yemi Osinbajo also reaffirmed the Federal Government’s commitment to the energy transition plan set for 2060, and a $50 million carbon market initiative partnership deal with Vitol was signed to support this.
Komolafe acknowledged the challenges faced by operators with the current regulations and said that necessary amendments would be made. Funding and security were identified as the major challenges facing the upstream sector.
