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Tag: NUPRC

  • FG says Enugu varsity fire triggered by untapped gas reservoir

    FG says Enugu varsity fire triggered by untapped gas reservoir

    The Nigerian Petroleum Upstream Petroleum Regulatory Commission (NUPRC) has confirmed a fire incident triggered by a suspected associated gas reservoir within the vicinity of Caritas University in Enugu.

    Mr Gbenga Komolafe, Commission Chief Executive, NUPRC in a statement on Friday said the incident occurred on May 22 but  was reported to NUPRC on May 26.

    Komolafe said it was confirmed that there was no pipeline right of way in the area  but the incident was caused by the activities of some contractors who were drilling a water borehole on the university  premises.

    He said on receipt of the incident report, NUPRC and related agencies immediately carried out an investigation and discovered that the incident happened in the process of drilling a water well with a target drill depth of 400 meters for the university.

    He said it was learnt that the university engaged the services of HydroGeo Engineering Services for the drilling of water borehole but the job was later sub-contracted to Orange Water Wells Drilling Company.

    He said in the course of the drilling, pressurised seepage was encountered after about 200 meter and fumes were gushing out of the drilled hole.

    “One of the workers who suspected the fumes to be gas seepage reportedly wanted to confirm his suspicion, and in process introduced a source of ignition which led to the fire outbreak.

    “It was the unfortunate action that provided a stronger basis for the qualification of the fumes as associated gas.

    “Following the fire outbreak, the drilling contractor swiftly removed the drill pipes, demobilised the rig and immediately notified the Enugu state government of the incident.

    “The state and federal fire services which were mobilised to the site, battled the fire for more than two days.

    “The university authority cordoned off the site and restricted access to the area; and directed for the immediate discontinued usage of all facilities within the affected area, including a nearby hall used for examinations,” he said.

    He further said that the NUPRC representatives, in collaboration with officials of the National Oil Spill Detection and Response Agency, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NNPC, Nigeria Security and Civil Defence Corps and other related enforcement agencies visited the site on May 27 and 31.

    He said the visit was for preliminary investigation to ascertain the status and gain insight on the cause.

    He said it would determine immediate safety and geotechnical measures required to put off the fire and prevent loss of lives, property and damage to the environment.

    He said the officials confirmed that no fatality was recorded as a result of the incident, although a staff of the drilling company had sustained first-degree burns.

    According to him, the staff was treated and discharged from the hospital.

    “The preliminary investigation revealed that there is no pipeline right of way in the area.

    “There is a continuous supply of gas from the underground source evidenced by the continuous fire which is suggestive of the presence of shallow gas which may be associated with coal bed methane gas or gas seepage.

    “In both cases, it may not necessarily be a reservoir accumulation but associated gas which the drilling process provided a flow line; a development similar to incidents associated with coal mines.

    “Plans are being finalised by Caritas University to carry out Geophysical Resistivity Survey of the area from June 3 to June 4, to acquire data that will give better insight on the near surface gas concentration in the area and its potential spread.

    “Also, an all-inclusive stakeholder engagement took place in Enugu on the June 1, for alignment deliberations and mutual commitment to achieve the immediate killing of the fire and stoppage of the gas leakage,” he said.

    According to him, NUPRC is proactively collaborating with all relevant stakeholders and is determined to deploy appropriate technology to ensure that the fire is put off and the source of gas leakage is sealed.

    This, he said would ensure environmental sustainability and safety of lives and property.

    He added that the Commission has already identified an indigenous company with verified competence and proven track record in managing related fire incidents.

    He said intervention options were being considered which would be finalised after another visit scheduled for June 6.

  • Effective regulations key to harnessing gains of PIA — Sylva

    Effective regulations key to harnessing gains of PIA — Sylva

    The Minister of State, Petroleum Resources, Chief Timipre Sylva, has underscored the need for effective regulations in harnessing the gains of the Petroleum Industry Act (PIA) for global relevance.

    Sylva said for Nigeria to continue to be relevant at the global stage it must design regulations that could balance the energy base load for Nigeria.

    Sylva said this while declaring open a stakeholders’ consultation forum on draft regulations under the PIA on Wednesday in Abuja.

    Newsmen reports that the draft regulations were prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in conjunction with the Presidential Steering Committee on the PIA.

    The premier consultative forum was aimed at ensuring inputs and considerations of oil and gas stakeholders on the draft regulations for smooth implementation of the PIA.

    The regulations include: Host communities’ development: Petroleum royalty: Upstream fess and rent: Domestic gas delivery obligations: Nigeria conversation; and Licencing regulations.

    Sylva said effective regulations would ensure that Nigeria was not left behind in the energy transition train while still harnessing our rich natural hydrocarbon reserves.

    The minister expressed hope that the input from various stakeholders would further clarify the draft regulations and eventual firming up of the final regulations for use.

    According to the minister, the government has a mandate of ensuring sound management of the oil and gas sector considering the key role the sector plays in revenue generation for the country.

    He said it was on this background that the Presidential Steering Committee on PIA, which he chaired, played the pivotal role in collaborating with NUPRC in drafting the first set of regulations for review.

    He commended the effort of the commission in the preparation of those draft regulations to beat the deadline set by the law for the commencement of the implementation of the PIA.

    “I am hopeful that the regulations when fully implemented will help in no small measure in the smooth take-off of the day-to-day operations of the NUPRC,’’ he added.

    Recall that on Aug. 16, 2021, President Muhammadu Buhari assented to the PIA after the National Assembly passed the bill.

    Sylva said that the eventual assent signaled a new era and opportunities in the oil and gas sector of the economy after almost two decades of unsuccessful efforts to have the law passed in Nigeria.

    Sylva, while decrying challenges posed by huge divestments in the hydrocarbon explorations by oil majors in the past due to global energy transition called for more innovative ways in fossil fuel exploitation and exploration in Nigeria.

    In a remark, Mr Gbenga Komolafe, Commission Chief Executive, NUPRC said the forum was expected to discuss and finalise the draft Regulations in line with Section 216 of the PIA 2021.

    Komolafe said besides the statutory imperative on the part of the commission to have the regulations finalised on time, there was also the compelling need for the nation to conclude the regulations-making process for PIA implementation.

    This, he said, would enable Nigeria to hedge against the impact of energy transition and take advantage of the oil and gas supply gap resulting from the current developments in Russia and Ukraine.

    “We are conscious of prioritising regulations to meet the timelines in the PIA. As such, this first phase of the stakeholders’ engagement will capture burning issues on the implementation in line with Section 235 of the PIA.

    “And also finalising the 2020 bid round through issuance of Petroleum Prospecting Licence (PPL) in line with Section 94 (2) of the PIA and a host of others,’’ the CCE said.

    The CCE was optimistic that all grey areas would receive adequate clarification with a view to giving meaning to the intent of the PIA for user-friendly implementation and attractive investments.

  • Crude oil probe: Reps demand proper report of volume of produced oil by NUPRC

    Crude oil probe: Reps demand proper report of volume of produced oil by NUPRC

    The House of Representatives on Tuesday directed the Nigerian Upstream Petroleum Regulatory Commission to submit proper reports on the volume of crude oil produced and details on the projected revenue.

    The panel also requested for details of crude oil production from October 2021 to March, 2022, with a view to determine the revenue accrued to the Federation through the commission.

    The investigative hearing on the ‘Revenue Monitoring Exercise’ was held at the instance of the House Committee on Finance, chaired by Hon. Abiodun James Faleke.

    As stipulated in the documents submitted to the Committee, out of total sum of N695.617 billion revenue realized by the Commission for the period under review, the sums of N616.182 billion; N19.556 billion; N39.085 billion; N3.502 billion; N6.693 billion and N10.599 billion were generated from Oil Royalty, Gas Royalty, Gas Flared Penalty, Concession rentals, MISC Oil Revenue and Signature Bonus, respectively.

    According to the Commission’s document submitted to the Committee, from the 24 contracts awarded from last quarter 2021, the sum of N55.438 million for renewal of contract for the provision of 20 Mbps internet bandwidth in DPR offices nationwide to VDT Communications Ltd on October 18, 2021; N20.464 million for procurement and installation of network & communication devices for DPR Calabar Field and N10.899 million for Akure Field Offices awarded to Zionchrome Int’l Nigeria Ltd on October 5, 2021.

    Contract worth N49,921,250 was also awarded for engaging the service of consultant to facilitate Capacity Building on Upstream Petroleum Operations for relevant National Assembly Staff and Legislatives Aides for the NUPRC on the 24th December, 2021 awarded to Priceless Craft; N48.268 million contract to facilitate strategic engagement on budget and revenue for NUPRC awarded on the 24th December 2021 as well as N39.295 million contract for separation and reconfiguration of smart inspector (Formelo) mobility workforce application for NUPRC; N78.045 million for renewal of automated upstream system (AUS) for NUPRC; among others.

    While responding to questions on the Fiscal Responsibility Commission’s activities, Mr. Bello Aliyu explained that from the N4 billion liabilities inherited from the defunct Department of Petroleum Resources (DPR), it was scaled down to N1.7 billion was taken over by the Commission.

    “The Nigeria Upstream Regulatory Commission is a new agency. It is the name that is new. The name was added to our purview December last year. So, we now wrote to them a letter sometimes in March to inform them of their responsibilities to Fiscal Responsibilities Act 2007 and then to inform them that, the obligations of DPR which was their former name is now transferred to them and that liability for DPR that they are responsible for is N1,739,837,045.

    “This we informed them sometimes in March. I think 29th of March,” he said.

    While presenting NUPRC’s position, Mr. Babajide Fashina said: “Details of revenue sources is based on oil royalty, gas royalty, gas sales royalty, gas flaring penalty, concession rental, miscellaneous oil revenue and signature bonus and all these are paid into the generation account, the Commission does not maintain any account of it’s own.

    “On the second one, which is the schedule of revenue collected, from October 2021 till February date, we have a total collection of N695,617,119.49. That was from October 2021 to February 2022.

    “And the breakdown as shown, the oil royalty which was the large one, we have N616 billion, the gas royalty, N19 billion, had flare N39 billion, Concession rental, N3.5 billion then Miscellaneous oil revenue, N6.69 and all these have been paid int the Federation Account.

    “From January to December 2021, we were able to generate about 2.7 trillion for the Federation,” he noted.

    He argued that the differential observed by the Committee would be resolved during the reconciliation with Fiscal Responsibility Commission.

    In his ruling, Hon. Faleke said: “Royalty, N88.7 billion, I am reading from your figure. From what volume of crude? We need to know. You need to create a column to tell us the volume of crude for that particular period you are referring to. Because we have to monitor this in line with our production.

    “So, all the revenue items you need to create that column for us to know what you are talking about. This is just bandying figures before us without foundation.

    “The Deputy has also advised that, in every budget, there are revenue expected of you and you are aware of that from the Budget Office. So, you need to also create that column, okay.

    “What is the expectation? What have you done to see have you surpassed or you have not surpassed? We would be able to ask you reason for that. So that gives us proper reporting, then we can interact properly rather than just guessing.

    “So, we will give you another day to do two things. Give us this proper report that we are asking. Two, do a final reconciliation with Fiscal Responsibility and get back to us next week.”

    To this end, Hon. Faleke directed the Commission to submit proper reports on the volume of crude oil produced and details on the projected revenue.

  • Work with regulator to resolve contentious issues, NUPRC appeals to marginal field awardees

    Work with regulator to resolve contentious issues, NUPRC appeals to marginal field awardees

    The Nigerian Upstream Regulatory Commission (NUPRC) has appealed to winners of the 2021 marginal field bids to show understanding and work in cooperation with the regulator to resolve the contentious issues thrown up by the cumbersome model used in awarding oil fields in May 2021, before the commencement of the Petroleum Industry Act (PIA) 2021.

    Engr. Gbenga Komolafe, the Commission Chief Executive who was reacting to the frustrations expressed by some of the winners assured that though it was an inherited problem, the NUPRC has been doing everything within its capacity to resolve the matter in the interest of parties involved in the transaction.

    He explained that the model used in conducting the bid and awarding equities merged strange bedfellows and asked them to work together on same fields. This became a problem as it was difficult for some of them to agree on certain terms and conditions because of their incompatible and incongruent backgrounds and capacities. The development has since slowed down the commencement process and achievement of the goal for which the exercise was meant to achieve.

    The Chief Executive acknowledged the economic impact the resultant delay is exerting on the awardees following their inability to take possession of the assets, particularly those who have already paid signature bonuses; and pointed out that the situation has also affected the country’s economy which has been denied expected income from increased oil production and taxes that would have accrued from operational activities.

    He noted that the model, which was complex and complicated, is the major cause of the inability of awardees to effectively proceed towards the process of production. “On inception in October 2021, the Commission prioritised the resolution of the issues thrown up in the process and has made remarkable progress in that direction.”

    According to him, when it became apparent that the fallouts of the cumbersome model used were detrimental to the objective of the exercise, NUPRC moved to resolve the situation by setting up a technical team which has so far held several meetings and workshops in both Lagos and Abuja with the aggrieved parties with the aim of resolving the contentious issues, particularly the putting in place of Special Purpose Vehicles (SPVs) to help firm up the partnerships that would kick off joint operatorship of the assets.

    After series of meetings and consultations on the issues and having reviewed the circumstances and noted the issues involved, the NUPRC is asking for patience and understanding from the awardees while it moves to address the issues created by a model which they willingly consented to ab initio.

    The Commission has therefore further showed understanding of the situation by extending to the awardees, the courtesy of a further 60 days grace period to remedy their default as provided for under section 97(1)(b) of the PIA 2021, and to progress with the SPVs, even though the time provided for them under the letters of award has since expired.

  • No adulterated fuel in Delta – NUPRC

    No adulterated fuel in Delta – NUPRC

    The Warri Zonal Office of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has yet to record any case of adulterated petroleum products in its various operations.

    Mr Ignatius Anyanwu, Operations Controller, NUPRC, Warri Zonal Office said this when he spoke with newsmen on Friday in Warri about the operations of the zone which comprised of Delta, Edo, Ondo and Ekiti.

    Anyanwu, who expressed surprise at the sudden queue that had resurfaced in most filling stations in Delta, said that there were enough petroleum products to serve the consumers.

    “The case of adulteration we are hearing, we did not record anyone in Warri zone. We have enough sufficiency in stock. I wonder why the sudden queue in filling stations across the state,” he said.

    Residents in Warri and environs woke up on Tuesday to see queues in most of the filling stations in the metropolis resulting in panic buying.

    Anyanwu advised motorists to stop panic buying, saying that the surveillance team of the commission was working assiduously to ensure there were no hoarding or diversion of products.

    “A total of 4.8 million litres of petrol were trucked out on Wednesday to the four catchment states under the Warri zone, which means that Delta now has 2.3 million litres,” he said.

    Anyanwu said that 116 trucks distributed the products across the four states, saying that 55 trucks out of the trucks supplied petrol to filling stations in Delta.

    “We had two vessels, one discharged on Wednesday, while the other discharged on Thursday.As of Thursday, we had over 62 million litres in stock and this is being distributed throughout the states. So, there should not be scarcity or panic buying.

    “We are surprised to see the queue at filling stations, there is no need for that because we have enough sufficiency in stock, of course, there was a case of adulteration in Lagos and others; the public does not need to panic.

    “Although, truly speaking, the queues are gradually disappearing unlike on Wednesday.When we saw the queue, we immediately dispatched our surveillance team.

    “They went to Asaba on Wednesday and on Thursday; they monitored Warri and environs to find out the cause of the queue,” he said.

    Anyanwu added:”The preliminary finding for that of Asaba is that most of the Independent Marketers do not really have the product, but the Major Marketers had and were selling at the pump price.

    “The few Independent Marketers that have fuel were selling above the pump price. So there is a tendency for people to go to where the price is normal. I believe that is what is building the queue.

    “The next thing we are going to find out now is why the discrepancies in their prices.”
    He said that the regulatory body would continue to intensify surveillance to ensure total compliance with the rules and regulations of the downstream operations.

    Anyanwu, however, warned petroleum marketers against sharp practices in the downstream sector, saying that violators would be sanctioned accordingly.

  • FG, others vow investigation of burnt out crude oil facility

    FG, others vow investigation of burnt out crude oil facility

    The Federal Government and petroleum industry stakeholders have vowed investigation of the Floating Production Storage and Offloading (FPSO) facility which exploded on Wednesday.

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the development in a statement issued on Saturday.

    NUPRC and stakeholders had ealier embarked on a Joint Investigation Visit (JIV) to the burnt out facility. NUPRC told newsmen that Trinity Spirit FPSO, located at Ukpokiti field (OML 108) in Delta State, exploded leading to a fire incident on the vessel.

    Providing an update, the commission said the fire had been successfully extinguished.

    “The commission will commence JIV with relevant stakeholders immediately in line with our regulatory oversight function for upstream operations.

    “We will deploy our incident management strategy. We’ll ensure the removal of the FPSO is carried out professionally to prevent an escalation of the incident.

    “The commission will ensure that all safety and environmental measures are strictly adhered to in the management of the incident.”

    Management of Shebah Exploration and Production Company Ltd. (SEPCOL), which owns the FPSO, confirmed that the JIV with relevant stakeholders and experts had been scheduled for Feb. 5.

    Mr Ikemefuna Okafor, the Chief Executive Officer, SEPCOL (In receivership) signed the statement.

    Okafor said there was still no fatalities from the incident though some operatives remained unaccounted for.

    The company, he said will prioritise investigations to establish the whereabouts, safety, and security of the 10 crew members who were on board the vessel prior to the incident.

    Okafor lauded the assistance provided by the Clean Nigeria Associates, the Chevron team, government agencies and the people of the community, particularly the fishermen since the incident occurred.

  • Senate committee on upstream’ll ensure full implementation of PIA – Chairman

    Senate committee on upstream’ll ensure full implementation of PIA – Chairman

    The Senate Committee on Petroleum Resources (Upstream) says it will ensure that every single provision enshrined in the Petroleum Industry Act (PIA) is followed to a logical conclusion without any form of ambiguity.

    The committee said that the National Assembly would invoke its constitutional mandate to ensure the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Petroleum Industry run in line with the provisions of the Act.

    The Chairman of the committee, Sen. Albert Bassey, disclosed this on Wednesday in Abuja, during an oversight visit by the committee to NUPRC.

    According to the chairman, this is the first time in Nigeria’s history, that there is a ‘one stop booklet’ which actually clarifies the certainty, prospect and competitiveness of oil and gas industry.

    “What the law stipulates for the commission is to be independent to build confidence in the hearts and minds of investors.

    “We have not had the privilege of coming out in the past 18 months because all hands were on deck towards processing and passage of the PIA. Kudos to President Muhammadu Buhari for signing the bill into law.

    “We are still engaging relevant stakeholders, the President has sent in the first amendment request of the act, we are looking into that and will be on public hearing soon,” he said.

    Bassey further noted that the committee would equally have engagement with NUPRC board members to understand its policy direction and projection of the commission in the first quarter of 2022 and next one year.

    He expressed concern that as a commission, the NUPRC was expected to have studied the Act in terms of fine-tuning it, which would be processed in line with the amendment of the Act.

    He explained that the visit marked the commencement of its oversight activities in the sector, as it was saddled with the responsibility to oversight the upstream petroleum sector over economy.

    Bassey, while noting that the budget tenure was extended to March, urged the commission not to hesitate to share its concern and challenges as regards to 2021 budget implementation for assistance.

    While commending the Commission’s Chief Executive, he noted that the task ahead of him was quite enormous, and called for collaboration with the steering committee on the implementation of the Act, to ensure that the commission was properly guided without infringing on its independence.

    The committee members also tasked the commission to adopt measures to deploy modern technologies to address leakages, mitigate environmental damage and pollution by illegal refineries, and ensure pump price uniformity.

    The committee members also underscored the need to see full implementation of the PIA and regulations of NUPRC, especially in host community trust fund-related issues.

    The Commission Chief Executive (CCE), Mr Gbenga Komolafe, had earlier said that the Commission’s role was key to the federation revenue, adding that it was determined in ensuring that it operated in line with the Act.

    Komolafe, who described the visit as a key statutory responsibility of the committee, expressed delight in the exercise and commended the passage of the PIA which brought about establishment of the NUPRC.

    “We recognise our responsibility as enacted by the Senate and we are very keen in making a tremendous impact in our upstream regulatory functions to achieve intendment of the PIA and meet expectations of the assembly and international community.

    “We continually seek adequate support of the committee to work assiduously in carrying out our enormous tasks which include monitoring of crude oil theft and sabotage among others, to make impacts and achieve efficient upstream regulations,” he said.

    In a presentation, the CCE also listed the commission’s key statutory mandates as stipulated by PIA, projections, targets and losses as well as capital projects including the ongoing construction of its headquarters to be completed by 2023.

  • Commission set to close 2020 marginal field bid

    Commission set to close 2020 marginal field bid

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it is set to close out the 2020 marginal field bid round programme in line with the Petroleum Industry Act 2021 (PIA).

    The Commission Chief Executive, Mr Gbenga Komolafe, in a statement on Tuesday noted that it has equally put in place all necessary machinery to progress the bid round exercise to conclusion.

    Komolafe, in a notice to participants of the programme, indicated that an in-house work team has already been constituted to deal with outstanding issues.

    According to him, the issues include distilling and addressing the concerns of awardees with a view to close out issues affecting multiple awardees per asset.

    He said it also involved formation of Special Purpose Vehicles (SPV) by awardees in line with the respective letters of award.

    Consequently, he said the Commission had enjoined awardees with the indicated issues to avail themselves of the resolution mechanism provided in the overriding national interest.

    He also stated that the Commission was collaborating with lease holders to agree on transition mechanisms in line with the PIA and the aspirations of government for the marginal field bid round exercise.

    Komolafe explained that the 45 days period for payment of signature bonus by successful awardees as stipulated by the Marginal Field Guidelines has lapsed.

    He, however, assured those who have fully paid their signature bonuses that it would ensure that all guidelines were implemented.

    “As regulator and business enabler, the Commission will ensure that all applicable guidelines to enable them progress to the next stage of the exercise, are fully implemented,” Komolafe said.