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Tag: NUPRC

  • Reps demand from NUPRC details of oil production, crude sales

    Reps demand from NUPRC details of oil production, crude sales

    The House of Representatives has mandated the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to provide details of all oil production, crude sales, and other activities in the upstream petroleum industry in the country.

    The joint sitting of the House Committee on Finance and the Committee on National Planning gave the directive at the ongoing interactive session with key agencies in Abuja on Friday.

    The interaction is on the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

    The directive was given after a presentation by the NUPRC Executive Commissioner for Economic Regulation & Strategic Planning (ECR&SP), Mr. Babajide Fasina.

    He was represented by the Chief Executive Officer (CEO) of the organisation, Mr. Gbenga Komolafe, accompanied by some members of its management.

    Fasina informed the committee that NUPRC derived its various revenues from oil royalty, gas royalty, concession rental, gas flat penalty, and miscellaneous oil revenues.

    This, he said, which includes fines and levies, signature bonuses, and renewal of licenses.

    He said that NUPRC got 4 percent Cost Of Revenue Collection (CORC) for the total revenue collected on behalf of the Federal Government.

    This, he added, was credited directly to the Federation Account, and FAAC credits the 4% to the Commission.

    “The CORC amounted to N114.84 billion in 2023 as against N114.38 billion in 2022.

    “The amount released in 2023 includes N2.82 billion for capital expenditure, though N173.77 billion was due as 4% on the actual collections of N14.34 trillion in 2023.

    “The commission also generates revenues internally, such as registration fees, license fees, fines, recoveries, among others.

    He added that it generated N1.44 billion in 2023 compared to N30.08 billion in 2022, and this accounts for 1.26% of the total revenue realised in 2023 and 2.62% in 2022, respectively.

    Fasina, however, informed the committee that the commission recorded a high expenditure in 2023 compared to 2022 of N11.46 billion, which he said was an increase of 10.83 percent.

    “Personnel cost, which has the largest share, amounting to N82.35 billion, represents 70.19 percent of the total expenses of N117.33 billion.

    “This followed by overhead costs of N31.63 billion, which accounts for 26.96 billion.”.

    He said that the commission’s non-tax remittance dropped from N3.67 billion in 2022 to N1.77 billion in 2023 and an amortisation and depreciation of N246.66 million and N1.33 billion, respectively.

    Rep. James Faleke, the chairman of the House Committee on Finance, who presided over the session, expressed dissatisfaction with the commission’s personnel and overhead expenditure.

    This was stated by its official as contained in the documents presented before the committee.

    “I’m wondering what type of organisation you have.You are paying N88 billion as salaries. How many staff do you have?

    Ruling on the matter, Faleke said, “you will have to come back with all the records of all the wells that produce the oil, litre by litre, per day. How much oil do we get from here every day?

  • We did not approve sale of Shell assets — NUPRC

    We did not approve sale of Shell assets — NUPRC

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has not approved Shell International Plc’s bid to sell its onshore assets to Renaissance.

    A statement signed by NUPRC Head, Public Affairs and Corporate Communication, Mrs Olaide Shonola titled: “Re-Boon for Nigeria as Shell’s $1.3bn assets sale gets regulatory nod” read, “The attention of the has been drawn to a publication in the Businessday of September 11, 2024, purporting that the Commission has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.

    “It must be firmly stated that the information contained in the publication did not emanate from the Commission.

    “As part of the Commission’s commitment to transparency and accountability, it will communicate its position on the transaction to the public at the appropriate time.

    The Commission further called on industry stakeholders and the general public to disregard the publication describing it as baseless.

     

     

  • Dangote replies NUPRC, explains how IOCs frustrate local refining of crude

    Dangote replies NUPRC, explains how IOCs frustrate local refining of crude

    Dangote Industries Ltd. has again made clarifications on how International Oil Companies (IOCs) operating in Nigeria had consistently frustrated the company’s requests for locally produced crude as feedstock for its refining process.

    Mr Devakumar Edwin, Vice President of Dangote Industries, made the clarifications in a statement on Wednesday in Lagos while commending the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its various interventions in the oil company’s crude supply requests from IOCs.

    Edwin said that NUPRC should also be commended for publishing the Domestic Crude Supply Obligation (DCSO) guidelines to enshrine transparency in the oil industry.

    He said: “If the Domestic Crude Supply Obligation (DCSO) guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated by the PIA.”

    Edwin said that IOCs operating in Nigeria had consistently frustrated the company’s requests for locally produced crude as feedstock for its refining process.

    He highlighted that when cargoes were offered to the oil company by the trading arms, it was sometimes at two dollars to four dollars per barrel, premium above the official price set by NUPRC.

    “As an example, we paid $96.23 per barrel for a cargo of Bonga crude grade in April (excluding transport). The price consisted of $90.15 dated brent price + $5.08 NNPC premium (NSP) + $1 trader premium.

    “In the same month we were able to buy WTI at a dated brent price of $90.15 + $0.93 trader premium including transport.

    “When NNPC subsequently lowered its premium based on market feedback that it was too high, some traders then started asking us for a premium of up to four million dollars over and above the NSP for a cargo of Bonny Light.

    “Data on platforms like Platts and Argus shows that the price offered to us is way higher than the market prices tracked by these platforms.

    “We recently had to escalate this to NUPRC”, Edwin said, and urged the regulatory commission to take a second look at the issue of pricing, ” he added.

    Edwin’s comments followed a statement by the Chief Executive Officer of NUPRC, Gbenga Komolafe, who, in an interview on ARISE News TV, remarked that it was “erroneous” to claim that IOCs were refusing to make crude oil available to domestic refiners.

    The statement also quoted Komolafe citing the PIA’s stipulation for a willing buyer-willing seller relationship.

    “The NUPRC has been very supportive of the Dangote Refinery, intervening several times to help secure crude supply.

    “However, Komolafe’s statement may have been misinterpreted; IOCs have indeed been difficult to deal with directly,” Edwin clarified.

    Aside from the Nigerian National Petroleum Corporation Ltd. (NNPCL), Edwin noted that the company had only purchased crude directly from one other local producer (Sapetro).

    Other producers refer them to their international trading arms, which act as middlemen earning margins from crude produced and consumed in Nigeria without being bound by Nigerian laws or paying local taxes on their earnings.

    Edwin recounted a situation where the trading arm of an IOC refused to sell directly to Dangote Refinery and instead suggested using a middleman.

    After nine months of dialogue, the issue was resolved with the help of NUPRC.

    “When we entered the market to purchase crude for August, international trading arms informed us they had entered their Nigerian cargoes into a Pertamina (the Indonesian National Oil Company) tender.

    “We had to wait for the tender to conclude to see what was available,” Edwin said.

    Edwin urged NUPRC to revisit pricing, emphasising that market liquidity was essential for a willing seller-willing buyer basis.

    He suggested that domestic crude supply obligations should specify volume obligations per producer and a transparent pricing formula to prevent price gouging.

    “The fact that the domestic crude supply obligation as defined in the PIA has gaps is no reason for wisdom not to prevail,” Edwin said.

  • Oil block Licensing: NUPRC gives 48 hours deadline for registration

    Oil block Licensing: NUPRC gives 48 hours deadline for registration

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given 48 hours deadline to new investors for registration of the 2024 oil block licensing bid round.

    Mr Gbenga Komolafe made this known on Wednesday at the 23rd 2024 Nigerian Oil and Gas Energy Conference (NOG) in Abuja themed “Showcasing Opportunities, Driving Investment, Meeting Energy Demand’’.

    Komolafe, in a presentation tagged “Defining the Outlook for Deep Water Exploration and Production in Nigeria’’ said the registration and submission of pre-qualification documents would close on July 5.

    “Registration closes at 12 midnight Friday, July 5, 2024,’’ he said.

    According to the CCE, announcement of licencing round, launch of bid portal and advertisement, which started on May 29, 2024, ended on May 10, 2024.

    He said that technical and commercial bid submission including data access/data purchase/evaluation/bid, preparation and submission, technical bid, evaluation/publications of pre-qualified companies and commercial bid conference would begin Aug. 7 and end Dec. 13.

    He said that ministerial consent, contracting and negotiation would start in Dec. 16 and end in Jan. 29, 2025.

    He said that the total number of blocks were 31 while five blocks were under litigation.

    Speaking on high impact achievements to optimise production, he said it conducted wide integrated study on the reactivation of shut-in strings in Nigeria to unlock 700 Million Barrel Per Day (MBOPD).

    The CCE explained that approvals were granted for well interventions and re-entry operations with potential to develop greater than six MMB of oil and five Trillion Cubic Feet (TCF) of Gas.

    He further said that the Field Development Plans for additional production was approved from four fields with peak potential of circa 125 Million Barrel Oil Per Day MBOPD.

    He said it accelerated the approval and commissioning of four Alternative Crude Oil Evacuation Routes (ACOER) with a total combined capacity of about 250 MBOPD.

    According to him, it has commenced the implementation of the drill or drop philosophy to optimise sustainable field development in line with petroleum Industry Act (PIA) provisions.

    “The commission has engaged the E&P Companies on unlocking about 57 Trillion Cubic Feet (TCF) of uncommitted or unmonetised gas reserves.

    “We developed and unveiled a template guiding the activities for Domestic Crude Oil Supply Obligation (DCSO) to ensure adequate and uninterrupted feedstock to all domestic refineries in Nigeria.

    “We have issued the annual Domestic Gas Delivery Obligation (DGDO) to all lessees to drive gas production growth,’’ he said.

  • FG begins 2024 oil block bidding round

    FG begins 2024 oil block bidding round

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), on Tuesday, announced the commencement of the 2024 oil block licensing round.

    Mr Gbenga Komolafe, Commission Chief Executive, NUPRC, announced this at the Miami, Florida International Roadshow for the 2024 licensing round, hosted by the NUPRC, in collaboration with Petroleum Technology Association of Nigeria (PETAN).

    The commission said the 2024 block licensing round would last for approximately nine months.

    Komolafe, while unveiling the bidding round, said the exercise which was initially announced in April 29, 2024, was a significant leap in the strategic hydrocarbons development initiative.

    He said the round would introduce 12 meticulously selected blocks across diverse geological spectra from the fertile onshore basins to the promising continental shelves and the untapped depths of Nigeria’s deep offshore territories.

    “Each block has been chosen for its potential to bolster our national reserves and stimulate economic vitality.

    “The NUPRC on behalf of the Federal Republic of Nigeria is committed to conducting the licensing round in a fair, competitive and transparent manner, ensuring a level playing field for both indigenous and international investors.

    “Our approach is underpinned by the robust legal framework of the Petroleum Industry Act 2021 (PIA), which ensures compliance with best practices to boost investors’confidence.

    “In keeping with the provisions of the PIA and regulations made under the Act, the commission has issued a licensing round guideline and published a licensing round plan for the twelve blocks.

    “The blocks are PPL 300-CS; PPL 301-CS, PPL 3008, PPL 3009, PPL 2001, PPL 2002, PML 51, PPL 267, PPL 268, PPL 269, PPL 270, and PPL 271,” he said.

    He said the seven deep offshore blocks from the 2022 mini-bid round exercise which covered an area of approximately 6,700 km2 in water depths of 1,150m to 3,100m would be concluded along with this licensing round.

    He said rhe blocks on offer had extensive 2D and 3D seismic data coverage, including multi-beam and analogue data.

    “Additionally, a 3D reprocessed Pre-stack Time Migration of remarkable quality is also available to prospective bidders.

    “The availability of advanced seismic datasets and analytical tools via our dedicated portals exemplifies our commitment to excellence and technological advancement,” he said.

    According to Komolafe, the licencing round is indeed expected to be a huge success for Nigeria and is a big step towards growing the nation’s oil and gas reserves.

    This, he said would be through aggressive exploration and development efforts, boosting production, expanding opportunities for gas utilisation and end-to-end development across the value chain.

    “In addition, the licencing round presents us with the opportunity to reinforce Nigeria’s commitment to openness and transparency in line with the principles of the Extractive Industry Transparency Initiative (EITI),” he said.

    On the global scale, Komolafe said the licensing round would no doubt be beneficial to all stakeholders, add6that in the long run it would contribute to long-term global energy sufficiency.

    “The implementation process will, in addition to technical and commercial considerations, pay requisite attention to strategies, processes and implementable plans consistent with net zero carbon emission targets, eliminating gas flares”.

    He said competitive entry fees that were responsive to prevailing realities would be adopted in the 2024 block licensing round.

    Komolafe said that considerations for the commerciality of projects would be made on a case-by-case basis for the determination of appropriate entry fees.

    The 2024 block licensing round is scheduled to last for approximately nine months and interested parties should visit the dedicated NUPRC portal for details on how to participate.

  • FG to divest 26 oil blocks of 8.211m barrels reserves

    FG to divest 26 oil blocks of 8.211m barrels reserves

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says  the International Oil Companies (IOCs) have proposed 26 oil blocks to be divested to indigenous companies with 8.211 million barrels of oil reserves.

    The NUPRC said it had also engaged two leading global oil and gas decommissioning consultants to carry out due diligence on the proposed 26 oil blocks to be divested.

    The Commission’s Chief Executive, NUPRC, Mr  Gbenga Komolafe said this at the Industry Dialogue on IOCs Divestment of Oil and Gas Assets in Abuja on Friday.

    NUPRC organised the workshop to guide and consider due diligence and interrogation on compliance with the laws and processes that governed the proposed divestment of oil and gas assets.

    Seplat is acquiring Mobil Oil Producing Nigeria Unlimited (MPNU), Oando is acquiring Nigeria Agip Oil Company (NAOC), Chappal Energies is acquiring Equinor, while Renaissance is acquiring Shell Petroleum Development Company (SPDC).

    In his remarks, he said the blocks had an estimated total reserve of 8.211million barrels of oil, 2,699 million barrels of condensate, 44,110 billion cubic feet of associated gas and 46,604 billion cubic feet of non-associated gas.

    This, he said was a significant contribution to the nation’s hydrocarbon resources.

    “Additionally, these blocks contain P3 reserves estimated at 5,557 million barrels of oil, 1,221 million barrels of condensate, 14,296 billion cubic feet of associated gas and 13,518 billion cubic feet of Non-Associated Gas.

    “It is worth noting that a substantial part of the P3 reserves is located in or near producing assets. This means that a competent successor can easily mature them to 2P reserves.

    “Additionally, the current average production from these blocks is 346,290 barrels per day (bpod) (NAOC-28,018 bopd, MPNU-159,378 bopd, EQUINOR-36,155 bopd and SPDC-122,739 bopd).

    “But the technical production potential is much higher – standing at 643,054 barrels (NAOC-147,481 bopd, MPNU-244,268 bopd, EQUINOR-39,203 and SPDC-212,102 bopd).

    “These blocks have the potential to significantly boost our national production, which will benefit all stakeholders,” he said.

    He listed the names of the leading global oil and gas decommissioning consultants to include S&P Global Commodity Insights (SPGCI), and Boston Consulting Group (BCG).

    Komolafe said that the consultants would also work with the Commission as independent consultants in defining all end-of-field life and abandonment legacy liabilities in compliance with divestment guidelines.

    “They will also manage the operational risk across the entire asset portfolio, create a workflow for estimating total onshore decommissioning CAPEX liabilities.

    “They will determine the host community’s obligations based on three per cent OPEX stipulated in the Petroleum Industry Act (PIA), benchmark best practices on asset sales, and provide case study reports that draw lessons based on best practices, ” he said.

    He sald that the Commission’s regulatory goal was to ensure that parties in the divestment process conform to the approved divestment guidelines.

    Speaking on an overview of the divestments, Mr Enorense Amadasu, the Executive Commissioner, Development & Production, NUPRC, listed the divestments framework,  two options for divestments and objectives.

    The Commission’s Secretary and Legal Adviser, Mrs Olayemi Anyanechi described Option A as a grant of ministerial consent to the divestments on the  condition that entities would retain liabilities.

    According to her, this is until the commission’s investigation is concluded and liabilities are allocated to the proper party.

    “The divesting companies will be required to issue an undertaking to retain the liabilities until confirmation of the release by the commission of all or part of the retained liabilities.

    In Option B,, she said ministerial consent would not be granted until the commission had identified or assigned all liabilities to the capable parties.

    “The divesting entities will be required to issue a waiver, waiving their rights to deemed consent as provider in section 95 (7) (B) of the PIA,” she said.

    The Chairman, Oil Producers Trade Section (OPTS), Osagie Okunbor and the Independent Petroleum Producers Group (IPPG), Chairman, Abdulrazaq Isa lauded NUPRC for being transparent and clear options proposed in the divestments process.

    Representatives of other parties, including the Equinor, Seplat, Agip among others also lauded the commission on its efforts and clarity and promised to bring feedback to the commission.

  • NUPRC opens bid for 17 marginal oil fields

    NUPRC opens bid for 17 marginal oil fields

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it has begun the conduct of a fresh bid round for marginal oil fields in Nigeria.

    The NUPRC said 12 oil fields would be offered together with the five from the 2022 bid round that was put on hold due to the 2023 general elections.

    The Commission’s Chief Executive, Mr Gbenga Komolafe, said this at the Maiden Edition of the Nigeria Extractive Industries Transparency Initiative (NEITI) Policy Dialogue on Monday in Abuja.

    The NEITI House Dialogue is a platform for quarterly policy briefing by Chief Executive Officers and policy makers in the extractive industries to update the public on their activities.

    It enables them present information and data on key transparency and accountability policy reform efforts either accomplished or ongoing in their respective organisations.

    Komolafe, in his presentation, said the bid round would be conducted between 2024 and 2025.

    He stated that the Commission would conduct a comprehensive review of all awarded assets to ascertain active and idle assets in the industry.

    He assured that the process would be fair, transparent and competitive in line with Section 73(1) of the Petroleum Industry Act (PIA).

    He said it would be difficult to put a figure to the amount that would be generated from the bid round, adding, however, that it would run into billions of dollars.

    According to him, the country’s oil production is currently hovering around 1.4mbpd and 1.5mbpd.

    He said the petroleum environment prior to the PIA was chaotic, but had been changed with 25 regulations put in place by the Commission.

    He added that the sector had become predictable for investors to come in.

    Komolafe said the Commission awarded 49 gas flare sites under the gas commercialisation programme of the Federal Government, and generated N4.344 trillion revenue in 2023.

    Earlier, in his Opening Remarks, the NEITI Executive Secretary, Dr Orji Ogbonnaya Orji, said the Dialogue would host notable policy makers in Nigeria’s extractive industries and related sectors.

    Orji said it would address issues that were of interest and topical to the industry.

    He added that the policy dialogue would also get the invited policy maker to provide update or status report on the implementation of NEITI report recommendations as it concerned the agency.

    “This is with a view to deepening not just government oversight and reforms in the extractive sector, but making it inclusive of all stakeholders.

    “Selected section of company representatives, media and civil society actors will be invited to the programme live.

    “This is to demonstrate the multi-stakeholders’ nature of the Extractive Industries Transparency Initiative (EITI) process,” he said.

  • NUPRC rolls out action plan for 2024

    NUPRC rolls out action plan for 2024

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has rolled out its action plan for 2024 and near term 2024 to 2026 highlighting regulatory actions to be implemented in furtherance of its mandate.

    The Commission’s Chief Executive (CCE), Mr Gbenga Komolafe, in a statement on Monday, said the Regulatory Action Plan (RAP) was focused on predictability, future licencing rounds policy and implementation, unit cost of production optimisation and automation.

    Komolafe said it also focused on business process improvements for operational efficiency, promoting ease of entry and investment retention, vacating entry barriers associated with huge asset acquisition fees, deepening transparency, accountability and elimination of discriminatory practices.

    He listed others as implementation of a carbon credit earnings framework for upstream operations, accelerating the execution of oil and gas development and production projects, and enforcement of Drill or Drop provisions of the Petroleum Industry Act.

    “Other areas of focus include the optimisation of federation revenues, decarbonisation and greenhouse gas (GHG) emissions management in producing environment and Incorporation of green story in FDPs.

    “It includes diligent monitoring of implementation of the Nigerian Gas Flare Commercialisation Programme (NGFCP) awarded sites for optimum flare-out monetisation and Host Community Trust Fund implementation and guiding the trust fund activities.

    “This will reduce agitation in the operations areas and 100 per cent hydrocarbon accounting,’’ he said.

    The CCE further said that the RAP also targeted the implementation of the new production curtailment regime and domestic crude supply obligation, annual asset performance assessment and reviews, enforcement of Domestic Crude Supply Obligation (DCSO).

    He said it targeted Domestic Gas Distribution Obligation (DGDO) to improve domestic refining capacity, implementation of frontier exploration fund, decommissioning and abandonment fund and zero tolerance to default in royalty payment.

    According to him, value creation through approval of annual work programme/budget and monitoring of financial viability, crude oil and gas pricing in contemporary terms, and revenue generation and implementation of zero default strategy on payment of royalty are included.

    Komolafe indicated that the foregoing represented in broad terms the key thematic focus areas that would underpin the Commission’s activities in 2004.

    “These are in addition to the Commission’s commitment to its general objectives and functions as provided in the PIA and by implication all other laws relating to upstream petroleum operations in Nigeria,” he added.

    He explained that the aim of focusing on these areas was to bring into rapid effect, the transformation of the sector envisaged by the PIA (2021) and ramp up the efficiency and performance of the Sector.

    He was optimistic that the implementation of these initiatives would increase revenues generated for government from the industry, improve operating environment, optimise value, generate jobs, and position the country as a destination for foreign direct investment.

  • 2024 Budget: Customs, NUPRC get additional revenue target to N6trn

    2024 Budget: Customs, NUPRC get additional revenue target to N6trn

    Some revenue-generating agencies on Monday appeared before the House of Representatives Committee on Appropriations, affirming their commitment to surpass the revenue projections in the 2024 budget proposal.

    The Nigerian Customs Service (NCS), the Nigerian Communications Commission (NCC) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) appeared before the committee and expressed readiness to increase the revenue target.

    President Bola Tinubu, last month, presented a N27.5 trillion budget to the joint session of the National Assembly. The budget contained a projected revenue of N18 trillion.

    However, the Committee on Appropriations has consistently maintained that government-owned enterprises (GOEs) should generate more revenue than what is projected in the budget proposal.

    Nigerian customs

    The Comptroller General of Customs, Wale Adeniyi, while addressing the lawmakers, said the NSC has a projected N5 trillion in revenue.

    However, the Chairman of the Committee, Abubakar Bichi (APC, Kano), said NSC should be able to increase its revenue target.

    “Is there any possibility to increase your target in 2024? Because I said earlier, we need more revenue and you have done very well in 2023, you have almost 90 per cent,” Mr Bichi said.

    Responding to the request by the committee, Mr Adeniyi said NSC can generate an additional N1trillion if the government lifts the suspension of duty on single-use plastic and increase the duty on alcohol and tobacco.

    “We are targeting N5 trillion but it is not impossible for us to make N6 trillion if some of the issues around the operating environment are talked about. If we are able to review the concession that we are going to grant in 2024, we might get there.

    “At the beginning of July, excise on single-use plastics products was suspended. We believe that if the suspension is lifted, something in the region of N300 billion can be realised from single-use plastics alone.

    “The excise duty on alcohol and tobacco. There is a projection to increase it to 30 per cent. I this is done, we expect that revenue will get to where we want it,” the CGC said.

    NUPRC

    The Executive Secretary of NUPRC, Gbenga Komolafe, in his presentation, said the commission is projecting a revenue of N5.6 trillion for the year 2024.

    When asked about the possibility of increasing the projection, he said the upstream sector is currently facing multiple challenges ranging from oil theft, dearth of investment in the sector and challenges with host communities.

    He stated that the Commission is seeking to increase Nigeria’s daily oil production by 300,000 barrels per day.

    When pushed by the lawmakers on the actual figure, Mr Komolafe said the Commission can push its revenue target to N6 trillion.

    “We have the potential to increase the current production based on the field development plans we already have. We see an incremental of 300,000 barrels.

    “We are committed to achieving and surpassing the target. In terms of figure, the N5.6 trillion, we are committed to surpassing it and go toward N6 trillion,” he said.

    Mr Bichi insisted that NUPRC can generate more than N6 trillion, he, therefore, tasked the agency to exceed the N6 trillion target.

    “We will try our best to go above N6 trillion. We are working around the clock to achieve the national aspiration,” Mr Komolafe said.

    NCC

    Also appearing before the Committee, the Executive Vice Chairman of NCC, Aminu Maida said his commission is projecting N350 billion for the year 2024, of which N224 billion is to be remitted to the Consolidated Account.

    Mr Maida explained that the NCC majorly generates money from spectrum licensing and annual operating levy.

    He stated that the NCC is concerned about the growth of the sector instead of pushing for revenue.

    “I share your desire. I pray that we will exceed the revenue target. As a regulator, we have to balance the growth of the industry. What we need to do is to let the industry grow and have more people using telecommunication, therefore, we can get more annual operating levy,” he said.

    When pressed by the committee, Mr Maida said he should be allowed to check the books of the NCC to give a definite answer on a possible review of the revenue projection.

    He added that the Commission will launch a revenue collection App by the second quarter of 2024. Adding that the projection will help to increase the revenue of the Commission.

    “Sometime in Q1 or Q2, we are also going to deploy technology called the revenue assurance system. It will help us to collect our revenue. Right now, we depend on their management account to collect our revenue. With the software, we can actually know what exactly is due to NCC,” Mr Maida said.

    In his closing remarks, Mr Bichi said the committee is prioritizing revenue generation to support the programmes in the budgets.

  • NUPRC intervenes in Chevron/Escravos dispute

    NUPRC intervenes in Chevron/Escravos dispute

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has waded into the dispute between Chevron Nigeria Limited and communities within the company’s Warri exploration and production area, Delta State, over Host Communities Trust Fund.

    The NUPRC urged both parties in the dispute to maintain the peace, pending the resolution of the matter.

    At a meeting between the feuding parties at the NUPRC headquarters in Abuja, the Commission’s Chief Executive (CCE), Mr Gbenga Komolafe, urged them to maintain the status quo and ensure that peace reigned in the operational area.

    The dispute between Chevron and the Ugborodo, Ugbegugun and Denbele communities in Warri South Local Government is over the naming of the host community trust fund established for the communities and the composition of its Board of Trustees.

    People from the three communities were reported to have staged a protest in the Escravos Terminal area, accusing Chevron of going against the Petroleum Industry Act (PIA 2021).

    Komolafe, in a statement by Mrs Olaide Shonola, Head Public Affairs and Communication Unit, NUPRC, said NUPRC as the regulator was determined to ensure that the proper thing is done immediately.

    Having listened to the submissions of the parties, Komolafe issued a regulatory position and directed Chevron on the resolution of the matter which must be implemented within two weeks.

    He emphasised that the law which was very explicit on the matter in contention must be obeyed by all the parties concerned.

    Among other directives, the CCE called for the immediate convening of consultation meetings with the communities on the proper delineation and naming of the Fund in compliance with the PIA.

    He equally called for the re-composition of the Board of Trustees in line with an earlier directive of the Commission.

    “The process which must be supervised by the Commission’s Warri Regional Office is expected to be finalised and the report sent to the Commission within two weeks,” he said.