MARCH 2023

VOL. 3

NEW REGULATORY ENVIRONMENT HOST COMMUNITY SUPPORT DETERMINED TO

WILL STIMULATE MORE INVESTMENTS AND NET ZERO EMISSION TOP INCREASE NIGERIA’S
AND OPERATIONS NUPRC’S AGENDA REVENUE BASE

NEW ERA OF TRANSPARENCY

AND INNOVATION IN LICENSING
BID ROUND

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2 U P S T R E A M GA Z E M AGA Z I N E
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VOL.3 2023
CONTENTS
COVER STORY
11 New Era of Transparency
and Innovation in Licensing
Bid Round
58
08 Host Community Support and
Net Zero Emission Top NUPRC’s
Agenda
18 New Dawn in Regulations
Development in The Nigerian
Upstream Petroleum Sector 70
28 New Regulatory Environment will
Stimulate More Investments and
Operations
34 Sylva, Kyari, Other Industry
Leaders Grace Oloibiri Museum
88
Groundbreaking
36 Hydrocarbon Reserves Growth in a
Constrained Energy Transition Era
56 NUPRC Determined to Increase
93 94
Nigeria’s Revenue Base
UPSTREAM GAZE is published by the office of the Commission Chief Executive,
Nigerian Upstream Petroleum Regulatory Commission. All correspondences should
be directed to the Editorial Board, UPSTREAM GAZE, Nigerian Upstream Petroleum
Regulatory Commission - 7, Sylvester Ugoh Crescent, Jabi Abuja.
Tel +234 1 279 0000, +234 903 7150 Email info@nuprc.gov.ng
VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 3
PUBLISHER’S NOTE
Setting Standards
S
ince the establishment of the Nigerian Upstream Petroleum
Regulatory Commission, there has been a gradual and steady NUPRC ensures sustainable development of Nigeria’s
policy-driven transformation towards building a resilient and
sustainable sector that serves the interest of industry stake- UPSTREAM GAZE Upstream Petroleum Resources through effective regulatory
holders, the country’s economy and ultimately, the prosperity of its practices, while entrenching world-class professionalism,
people. TEAM accountability, and transparency.
A few months ago, the commission launched its flagship bidding
exercise to attract global and local investors that have the capability
and competence of operating in deep water environments. This is in We guarantee international best practices in regulating the
line with the commission's enhanced legal and regulatory frameworks
Publisher
Upstream Oil and Gas Sector in Nigeria.
poised to boost the country's production capacity and ensure energy
security and sustainability. Engr. Gbenga Komolafe
This edition takes a critical outlook on the aforementioned devel-
opment; its role in stimulating more investment and aiding smooth
operations within the sector; how it fosters inclusion, fairness and Editorial Advisory Board
healthy competitiveness for growth in the industry; and how support Captain John Tonlagha - Chairman
from host communities can help to achieve NET ZERO.
Nuhu Habibu
This publication also presents in-depth data, analysis and insights
into some of the activities driving growth and positioning Upstream Kelechi Ofoegbu
Oil and Gas as an industry of the future. It is my belief that critical data Jide Fashina
on industry road maps, global trends, a comprehensive study on in-
dustrial growth, sustainability and clean energy, emerging technologies Edu Inyang
and infrastructure development, amongst others, will further provide Afeez Balogun
a compass to navigate forward. Anyanwu Ignatius
Rest assured, we remain fully committed to executing the mandate
tied to the establishment of the Commission through transformative
leadership, public and private dialogue and partnerships. Legal Adviser
Olayemi Anyanechi
Happy reading!
Engr. Gbenga Komolafe, FNSE
Editorial - Public Affairs
Adamu Garba
Anthony Ukpo

IT
Olanrewaju Sholabi

Media Consultants
Akpandem James
Lekan Fatodu

Concept & Production

Checkout Communications Ltd
+2347038436251
www.checkoutcomms.com NIGERIAN UPSTREAM PETROLEUM REGULATORY COMMISSION
No. 7, Sylvester Ugoh Crescent, Off Obafemi Awolowo way, Jabi District, Abuja.
Tel +234 (1) 2790000, 9037150 Email info@nuprc.gov.ng

4 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 5

 Energy for Today
Energy for Tomorrow

NIGERIAN UPSTREAM PETROLEUM REGULATORY COMMISSION

No. 7, Sylvester Ugoh Crescent, Off Obafemi Awolowo way, Jabi District, Abuja.
Tel +234 (1) 2790000, 9037150 Email info@nuprc.gov.ng Oil Rig Workers
www.nnpcgroup.com
6 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 7
 menace in oil-rich regions and bringing respite to host
communities.
In 2022, as part of several initiatives and actions to
achieve the target of zero routine flaring within this
decade, the NUPRC re-launched the Nigerian Gas
Flare Commercialisation Programme (NGFCP). By all
Domestic Gas Delivery Obligations Regulations, and
Licensing Round Regulations.
Perhaps the clearest indication yet that the
Commission is intentional about fulfilling the obli-
gations presented by the PIA as a regulator is the
commitment to building healthy relationships with host

HOST COMMUNITY SUPPORT

indications, the relaunch of the programme is a critical communities. With the announcement of the regula-
milestone in Nigeria's efforts to bring sanity to its oil tions, it was immediately evident that the development

AND NET ZERO EMISSION

fields. Until its relaunch last year, the NGFCP, conceived of host communities ranked atop its agenda.
six years prior, had only existed as a potential solution It was revealed that through the Nigeria Upstream

TOP NUPRC’S AGENDA

to the country's desire to accomplish zero routine
gas flaring by 2035 and net zero emissions by 2060.
Achieving that ambition is now looking increasingly
- Lekan Fatodu - feasible with the reactivation.
Widespread excitement about the results the country
would begin to record is not unfounded. With the
relaunch, the NGFCP has been restructured to offer
Host Communities Development Regulations, the com-
mission would be seeking to further foster sustainable
prosperity and development within host communi-
ties by providing access to direct social and economic
benefits from petroleum operations. Furthermore, the
regulations would be pivotal in enhancing congenial
and peaceful co-existence between operators and host

A
t the United Nations Climate Conference
(COP27) held in Egypt in November 2022, the
Nigerian government reiterated its unwaver-
ing commitment to achieving net-zero carbon
emission targets by 2060.
But before Nigeria's Minister of Environment, Barr.
Mohammed Abdullahi sat with other world leaders at
the conference to further evaluate climate actions on
behalf of President Muhammadu Buhari, efforts by the
Nigerian Upstream Petroleum Regulatory Commission
(NUPRC) led the Commission’s Chief Executive, Engr.
Gbenga Komolafe, to effectively end gas flaring and
other indiscriminate practices in oil fields that contrib-
ute to greenhouse gas emissions had commenced in
earnest, to reflect the country's dedication to the global
cause.
The necessity of attaining zero carbon emissions was
top of the agenda when President Muhammadu Buhari
appended his signature to the Petroleum Industry
Bill two years ago. The bill effectively established the
NUPRC as the upstream technical and commercial
regulator and charged it with the task of fulfilling the
Federal Government's initial pledge to zero carbon
emissions at COP26.
Since then, the NUPRC has left no stone unturned,
intensifying its efforts to put a stop to the gas-flaring
THE BILL EFFECTIVELY ESTABLISHED
NUPRC AS THE UPSTREAM TECHNICAL
AND COMMERCIAL REGULATOR
AND CHARGED IT WITH THE TASK OF
FULFILLING THE FEDERAL GOVERNMENT'S
INITIAL PLEDGE TO ZERO CARBON
EMISSIONS AT COP26
flare sites to technically and commercially competent
third-party investors through a competitive and trans-
parent bid process. This signifies that investors with
proven technical and commercial capacity can begin
to convert flared gas for commercially useful purposes,
consequently curbing wastage, removing millions of
tonnes of carbon, and driving climate-friendly actions.
The restructuring and relaunch of the NGFCP
represent only a tiny aspect of the NUPRC's resolute
actions towards Nigeria's climate agenda, environ-
mental remediation and relief of the host communities.
Under the leadership of Engr. Gbenga Komolafe,
diligent steps by the NUPRC to drive adherence to
global standards in gas flaring practices and advanced
community relations in oil regions have been relentless.
Last year, after holding stakeholder consultation
on its first round of regulations as provided by the
PIA, the Commission reeled out new guidelines for
operators, investors, and host communities. The initial
six priority regulations included the Nigeria Upstream
Host Communities Development Regulations, Nigeria
Upstream Fees and Rents Regulations, Nigeria Royalty
Regulations, Conversion and Renewal Regulations,
communities.
The Nigeria Upstream Host Communities
Development Regulations and Procedure Guide is par-
ticularly expected to serve as a navigational aid for the
implementation of the Host Community Development
Trust which is designed to allow communities to play
commanding roles in the implementation of devel-
opmental projects. This will significantly mitigate
community restiveness that is often responsible for
hostile operating environments, as host communities
are expected to play their part in preventing acts of
vandalism, sabotage, theft, and civil unrest that may
be detrimental to Government and investors’ facilities.
"NUPRC is committed to working with the host com-
munities and other stakeholders to ensure business
investments and critical infrastructure in the oil and
gas sector are adequately protected while safeguard-
ing the safety and sustainability of the environment,"
Engr. Komolafe told a gathering of oil & gas industry
stakeholders and community leaders during the inau-
guration ceremony for host community representatives
in Bayelsa in July 2022.
It is imperative to note that the NUPRC under Engr.

8 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 9

 COVER STORY

NEW ERA OF TRANSPARENCY

AND INNOVATION IN
LICENSING BID ROUND
- Akpandem James -

I
n all his speeches concerning the 2022/2023 licensing
round of Petroleum Prospecting Licenses in Deep
Offshore Nigeria, the Chief Executive of the Nigerian
Upstream Petroleum Regulatory Commission
(NUPRC), Engr, Gbenga Komolafe, keeps emphasising one
word - transparency. For him that is the main vehicle that
will drive the delivery of the exercise. Bid round exercises
are not new in the industry, but past experiences have
been unsavoury. Inconsistencies triggered by opaqueness
of the process have often been their regular lot. It has
therefore become an issue for which the success of future
bid rounds can fundamentally be assessed.
Innovation is another. Because of the routine nature of
execution in the past, a regular template had emerged;
but Engr Komolafe and his team believe that it was time
to think outside the box and pursue the gold standard.
That it was time to bring in innovations that would propel
the process along international best practice dispositions.
Transparency and innovation are to produce the gold
standard and so would constitute the major drivers of
the next bid round; an exercise that was last conducted
more than 15 years ago. It would be the first under the
Petroleum Industry Act (PIA) 2021; and the first to be
midwifed directly by NUPRC.

Komolafe has continued to demonstrate that its

THIS YEAR, THE COMMISSION HAS BEEN
AT THE FOREFRONT OF DONATING RELIEF
MATERIALS TO FLOOD VICTIMS IN CROSS
RIVER, IMO, AKWA IBOM AND BAYELSA
STATES AS PART OF ITS CORPORATE
SOCIAL RESPONSIBILITY
concern for community development and welfare is not
just lip service and extends beyond oil-rich domains.
This year, the Commission has been at the forefront
of donating relief materials to flood victims in Cross
River, Imo, Akwa Ibom and Bayelsa states as part of its
corporate social responsibility, having been touched by
the tough impact of the disaster on victims since last
year.
The target year to achieve zero carbon footprint
in Nigeria's oil fields as promised by the Federal
Government may be about three decades away, but
the NUPRC has shown it is ready and willing to drive
practicable actions towards immediate growth of
gas reserves, gas production optimisation, increased
domestic gas utilisation, and gas flare elimination. And
that it has no intention of leaving host communities
behind to their fate.

10 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 11

COVER STORY
While addressing partici-
pants at the pre-bid conference
in Lagos on January 16, 2023, the
Commission Chief Executive (CCE)
again showcased these features as
the key drivers; and assured pro-
spective applicants and investors
that the entire bid process will be
fair, transparent, competitive and
conducted in strict compliance with
the provisions of the PIA 2021 and
the attendant regulations in line with
best practices.
The 2022/2023 bid round for
which all necessary structures have
been put in place is aimed at further
development of the deep offshore
acreages in accordance with the
PIA 2021, with its enhanced legal
and regulatory frameworks. The
frameworks seek to encourage new
investors and investments into the
next phase of exploration in the
prospective deep waters offshore
Nigeria. It is designed to attract
12 U P S T R E A M GA Z E M AGA Z I N E
competent investors from across the world, both local
and foreign. Consideration is focused on capability and
competence in operating in deep water environment and
awardees must be duly registered in Nigeria under the
Companies and Allied Matters Act (CAMA). Applicants are
eligible to participate either as individual companies or
as a consortium. The pre-bid conference was therefore
a clarion call to technically and financially capable local
and foreign investors to invest and take advantage of
the generous fiscal and regulatory regime in the Nigerian
upstream petroleum sector.
The Mini Bid Round is expected to be a huge success
for Nigeria. It is designed to emerge as a big step towards
growing the nation’s oil and gas reserves through aggres-
sive exploration and development efforts. It is envisaged
that the process would boost production, expand oppor-
tunities for gas utilisation and development, strengthen
energy security and economy, provide opportunity to
gainfully engage the pool of competent companies in
the oil and gas sector resulting in employment oppor-
tunities, enabling transfer of technology, valorising
petroleum assets in the Nigerian territory and attracting
investments. The bid round presents the Commission
with the opportunity to reinforce Nigeria’s commitment
to openness and transparency in line with the principles
of the Extractive Industry Transparency Initiative (EITI).
In compliance with the provisions of the Petroleum
Industry Act (PIA) 2021 and regulations made pursuant
to the Act, the Commission has issued a licensing round
guideline and published a licensing round plan for a total
of seven deep offshore open blocks (PPL 300-DO, PPL
301-DO, PPL 302-DO, PPL 303-DO, PPL 304-DO, PPL
305-DO and PPL 306-DO). The seven deep offshore
blocks, covering an area of approx-
imately 6,700 km2 in water depths
of 1,150m to 3,100m, are on offer in
the current mini bid round. These are
intended to be the first in a series of
bid rounds aimed at further devel-
THE PRE-BID CONFERENCE opment of prospective petroleum
basins. The bid rounds are within the
WAS THEREFORE context of the enhanced legal and
A CLARION CALL TO regulatory frameworks as enshrined
in Section 73 of the PIA, which seeks
TECHNICALLY AND to encourage new investors and
FINANCIALLY CAPABLE investments into the next phase of
oil and gas exploration in Nigeria.
LOCAL AND FOREIGN The blocks on offer have
INVESTORS TO INVEST AND extensive 2D and 3D seismic
data coverage, including multi-
TAKE ADVANTAGE OF THE beam and analogue data. A
GENEROUS FISCAL AND 3-Dimensional MegaSurveyPlus
reprocessed Pre-stack Time
REGULATORY REGIME IN Migration of remarkable quality is
also available to prospective bidders
THE NIGERIAN UPSTREAM (see the dedicated NUPRC portal
PETROLEUM SECTOR https://br.nuprc.gov.ng. for more
VOL.3 2023
THE EXERCISE IS EXPECTED TO OUTPERFORM THE
LAST BID ROUND WHICH HELD ABOUT 15 YEARS
AGO, PRECISELY IN APRIL 2007, UNDER A DIFFERENT
REGULATORY REGIME, THE PETROLEUM ACT, 1969
information on the blocks on offer and procedural staged
of the bid process).
It must be stated that the mini bid round is a mar-
ket-driven programme that would follow a transparent
and competitive procurement process designed to attract
competent third-party investors from across the world
that have the capacity and proficiency in operating in
deep water environment. The exercise is expected to
outperform the last bid round which held about 15 years
ago, precisely in April 2007, under a different regulatory established more data related initiatives in the NDR
regime, the Petroleum Act, 1969. During that exercise,
a total of forty-five (45) blocks drawn from the inland
Basins of Anambra, Benue and Lake Chad; the Niger Delta
Continental Shelf; Onshore Niger Delta and Deep Offshore
were put on offer. In line with the provisions of the PIA informed business decisions. These are some of the inno-
2021, the current mini bid round will be managed by the
NUPRC, supported by its National Data Repository (NDR)
and multi-client partners underpinned by high-quality
datasets.
The NDR within the NUPRC serves as the data
warehouse for Nigeria’s oil and gas industry. The Value
of Information (VOI) is for purpose of oil and gas invest- •
ment decisions. For example, NDR facilitates data for
bid rounds in line with the statutory mandates of the
VOL.3 2023
COVER STORY
NUPRC under the PIA to prospective
investors, thus enabling informed
investment decisions and shorten-
ing upstream business lifecycles.
Another application of ‘mass data
to barrel’ in NUPRC can be found in
the National Production Monitoring
System (NPMS), an electronic
system that is deployed to monitor
oil and gas production in Nigeria.
This ensures accurate and reliable
reporting of crude oil production.
The Commission in collaboration
with other relevant agencies is in the process of upgrading
and deploying the NPMS facility towards curbing crude
oil theft in Nigeria.
Furthermore, the NUPRC has taken technological
advancements into consideration in its work processes.
Currently, the Technological Adaptation Unit within
Engineering and Standards Department engages service
providers on new technologies that can be implemented
in the Nigerian Petroleum Industry. In addition, it has
such as National Improved Oil Recovery Centre (NIORC)
focussed on utilizing big data to drive reduction in cost
per barrel. Also, the Integrated Data Mining and Analytics
Centre (IDMAC) was setup to assess and analyse data for
vations introduced to assist in the delivery processes in
the operations of the Commission towards increasing
production levels and generating more revenue to boost
the economy.
The current bid round is scheduled to last for approxi-
mately four (4) months along the following processes:
Registration & Pre-Qualification
• Data Prying/Purchase
• Technical Bid Submission/Presentation
U P S T R E A M GA Z E M AGA Z I N E 13
COVER STORY

• Technical Bid Evaluation awarded 47 Petroleum Prospecting Licences to winners of

• Commercial Bid Conference marginal fields during the 2020 Marginal Field Bid Round
and developed model licence and model lease in conjunc-
Already, the Commission has announced commence- tion with the Legal and Compliance Department as well as
ment and has also launched the bid round portal since the Enforcement Strategic Business Unit. It renewed Oil
January 3, 2023. The logistics to guide applicants through Mining Leases 128, 130, 132, 133 and 138. In addition, the

ENERGY TRANSITION AND FUTURE

the licensing round process has also been made available. Commission acquired, processed and interpreted 82,175
The success of the mini bid round will ensure that all stake-
square kilometres of multi-beam data and carried out

OF HYDROCARBONS IN NIGERIA'S
holders gain value from the country’s resources, while geochemical analysis of Standard Cores and Heat Flow
also paying attention to reduction in carbon emissions Data over the Niger Delta offshore. A total of eleven wells

OIL AND GAS INDUSTRY: AN

as well as overall environmental, social and governance were approved: two exploration and nine appraisal wells,
considerations. of which two exploration and six appraisal wells were
It is expected that on a global scale, the licensing round
will be gainful to all stakeholders and will in the long run
drilled. Additional reserves expected form exploration
campaign is 628 million barrels of oil and 60 BSF of gas. INDEPENDENT SYNOPSIS
contribute to long-term global energy sufficiency. The Prior to the enactment of the PIA 2021, certain fields
process was formulated in line with global sustainabil- were classified as marginal. These included those that - Tony A. Ukpo -
ity goals. It will, in addition to technical and commercial were not considered by license holders for immediate
considerations, pay requisite attention to strategies, development due to assumed marginal economics under
processes and implementable plans consistent with net prevailing conditions; fields with exploratory wells drilled

N
zero carbon emission targets, eliminating gas flares as wellon the structure and reported as oil and/or gas discovery
as overall Environmental, Social and Governance (ESG) but left unattended for more than 10 years; those that igeria, has long been known for its vast hydro- What is Transition Energy?
considerations. leaseholders consider for farm-out due to portfolio ratio- carbon resources, particularly in the oil and Transition energy refers to the shift from fossil fuels
It is obvious that the oil and gas industry in Nigeria nalization; and those which the President, from time to gas industry. Over the years, the country has to cleaner and more sustainable sources of energy.
has embraced the reality of energy transition and is time, identified as such. The marginal field was conceived become heavily dependent on these resources This transition is driven by the need to address climate
taking strategic position to leverage on the opportu- to entrench the indigenization policy of the government as a major source of revenue, with the industry account- change and reduce carbon emissions to mitigate its
nities presented by the unfolding era. As a regulatory in the upstream sector of the oil and gas industry. The ing for more than 90% of the country's export earnings. impact on the environment. Transition energy sources
entity, the Commission has taken deliberate steps in objective was to: However, with the increasing global focus on renewable include renewable energy sources such as wind, solar,
this regard including the recent issuance of guidelines • Promote indigenous participation energy and the need to reduce carbon emissions, the hydropower, and geothermal, as well as alternative
for management of Fugitive Methane and Greenhouse • Increase oil and gas reserves as well as production future of hydrocarbons in Nigeria is facing significant fuels such as hydrogen, biofuels and natural gas.
Gases Emissions in the upstream oil and gas operations • Encourage capital inflow challenges. In this article, I share my personal thoughts Nigeria's oil and gas industry has been a major
in Nigeria during the COP27 in Egypt in a manner that • Generate employment and on the concept of energy transition and its impact on contributor to the country's economy for decades.
attracted wide international commendation for Nigeria. • Build local capacity in the sector the future of hydrocarbons in the Nigerian oil and gas However, with the increasing global focus on energy
It is however worthy of note that recent events around industry. transition, the industry is facing significant challenges.
the globe indicate that fossil fuels will continue to be a On assumption in November 2021, the Commission’s The demand for fossil fuels is expected to decline in
core part of the global energy mix well into the future, management inherited challenges thrown up by the
even beyond the 2050 targets 2020 Marginal Field Bid Round. It
for achieving net-zero carbon quickly set up a committee to look
emissions set by most countries. into issues surrounding the exercise
The recent increase in the price of and was given the responsibility of
energy, largely occasioned by the coming up with strategies to resolve
conflict between Russia and Ukraine them. Some of the issues included
and the ensuing energy disrup- the formation of Special Purpose
tion, has reawakened the call for
TO ESCALATE Vehicles (SPVs) by awardees and
geopolitical energy security and sus- CONVERSATIONS resolution of equity participation and
tainability. To escalate conversations part payment issues. The committee
in this direction, the Commission IN THIS DIRECTION, set to work and engaged the
has established a committee to THE COMMISSION allottees. Through the instrumental-
engage and collaborate with world ity of Alternative Dispute Resolution
renowned energy consultants, Wood HAS ESTABLISHED A Centre (ADRC) the Commission got
Mackenzie, to ensure that Nigerian COMMITTEE TO ENGAGE co-awardees who had issues to
petroleum upstream regulations resolve them speedily and amicably.
are in line with international best AND COLLABORATE WITH The process led to the resolution
practice. This will form the basis for WORLD RENOWNED of the challenges and the eventual
regulating the awardees of the seven allocation of licenses to successful
deep offshore blocks offered in the ENERGY CONSULTANTS, bidders to commence activities.
2022/2023 mini bid round exercise.
Between November 2021 and
WOOD MACKENZIE
October 2022, the Commission

14 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 15

the coming years as countries shift
towards cleaner energy sources.
This decline in demand could have
a significant impact on Nigeria's
economy, which relies heavily on
oil and gas exports.
To mitigate the impact of the
transition to cleaner energy
sources, Nigeria needs to diversify
its economy and develop new
industries. The country has
already made significant progress
in this area, with the government
launching various initiatives such
as, The Decade of Gas (DoG) policy
that was launched by President
Muhammadu Buhari (GCFR) to
highlight the commitment of the
Federal Government of Nigeria
to boost domestic gas utiliza-
tion among Nigerians. Therefore,
he declared 2021 – 2030 as the
decade of gas, making natural gas
a primary source of energy to support the development
of non-oil sectors such as agriculture, mining, and man-
ufacturing. However, more needs to be done to ensure
that the country can deal with the transition to cleaner
energy sources.
Nigeria, like many countries around the world, is
seeking transition to cleaner and more sustainable
energy sources. While renewable energy sources such
as wind, solar, and hydropower are receiving increas-
ing attention, natural gas is emerging as an important
alternative transition energy source for Nigeria. I hope
to explore the benefits of natural gas as transition
energy for Nigeria.
Abundant Resource
Nigeria is blessed with abundant natural gas
reserves, estimated to be the 9th largest in the world.
The country's natural gas reserves are estimated at
over 208.62 trillion cubic feet (tcf) as at 01/01/22, which
represents a significant opportunity for the country to
leverage natural gas as a transition energy source. As a
cleaner burning fossil fuel, natural gas can help reduce
the carbon emissions associated with electricity gen-
eration and industrial processes.
Lower Carbon Footprint
Natural gas emits significantly lower carbon than coal
or oil. During combustion, natural gas produces about
half as much carbon dioxide (CO2) as coal and about
30% less CO2 than oil. This makes natural gas a cleaner
fossil fuel and a better option for the environment.
Energy Security
Natural gas can provide energy security for Nigeria.
As a domestic resource, natural gas can help the country
16 U P S T R E A M GA Z E M AGA Z I N E
reduce its dependence on imported oil and enhance
its energy security. This is particularly important for
a country like Nigeria, which is heavily reliant on oil
exports for revenue. Diversifying the country's energy
mix to include natural gas can help reduce the risks
associated with a dependence on oil exports.
Economic Benefits
Natural gas can provide significant economic benefits
for Nigeria. As a domestic resource, natural gas can
create jobs and generate revenue for the country. The
development of natural gas infrastructure can also
create new business opportunities for local companies,
enhancing economic growth and development
.
Flexibility
Natural gas is a flexible energy source that can be
used in a wide range of applications. It can be used for
WHILE RENEWABLE ENERGY SOURCES
SUCH AS WIND, SOLAR, AND HYDROPOWER
ARE RECEIVING INCREASING ATTENTION,
NATURAL GAS IS EMERGING AS AN
IMPORTANT ALTERNATIVE TRANSITION
ENERGY SOURCE FOR NIGERIA
VOL.3 2023
WITH THE RIGHT POLICIES AND
INVESTMENTS IN PLACE, NATURAL
GAS CAN BE A KEY DRIVER OF ECONOMIC
GROWTH AND DEVELOPMENT
IN NIGERIA
electricity generation, industrial processes, heating
and transportation. This flexibility makes natural gas
an attractive transition energy source for Nigeria, as it
can be used to meet a range of energy needs..
Future of Hydrocarbons in the Nigerian Oil
and Gas Industry
In my opinion, the future of hydrocarbons in Nigeria's
oil and gas industry is uncertain. While the demand for
fossil fuels is expected to decline in the coming years,
hydrocarbons will continue to play a significant role in
meeting global energy demand. However, the industry
will need to adapt to changing market conditions and
adopt cleaner technologies to reduce carbon emissions.
To remain competitive in a transitioning energy
market, the Nigerian oil and gas industry needs to
focus on efficiency, cost reduction, and sustainability.
This includes investing in cleaner technologies such as
carbon capture and storage (CCS) and reducing flaring
VOL.3 2023
and venting of methane gas. I strongly commend the
Nigerian Upstream Petroleum Regulatory Commission
(NUPRC) for the robust relaunch of the Nigeria Gas-Flare
Commercialization Programme (NGFCP) focused on
attracting investments and developing a transparent
market through a competitive procurement process of
allocating gas flares transparently to investors using
proven global technologies. Additionally, the industry
needs to embrace renewable energy sources such as
solar and wind power to diversify its portfolio.
Natural gas has emerged as an important transition
energy source for Nigeria. The country's abundant
natural gas reserves provide an opportunity to
leverage this cleaner burning fossil fuel to reduce
carbon emissions, enhance energy security and provide
significant economic benefits. As Nigeria seeks to tran-
sition to cleaner and more sustainable energy sources,
natural gas can play an important role in diversifying
the country's energy mix and meeting its energy needs.
With the right policies and investments in place, natural
gas can be a key driver of economic growth and devel-
opment in Nigeria.
In conclusion, the transition to cleaner energy sources
is a significant challenge for the Nigerian oil and gas
industry. The industry needs to adapt to changing
market conditions and embrace cleaner technologies
to reduce carbon emissions and remain competitive.
While the future of hydrocarbons in the industry is
uncertain, they will continue to play a significant role
in meeting global energy demand. The key to success
will be diversifying the economy and developing new
industries to ensure that Nigeria can weather the storm
and eventually transition to cleaner energy sources.
U P S T R E A M GA Z E M AGA Z I N E 17

A NEW DAWN IN REGULATIONS
DEVELOPMENT IN NIGERIA'S UPSTREAM
PETROLEUM SECTOR
- Emmanuella N. Senlong -
T
he potential of significantly improving rules
and policies and ensuring that such rules and
policies are complied with is increased when
those affected or concerned with the subject
matter are involved in the policy making process. In
the struggle to achieve this increased potential and
build trust between the Regulators and the industry
stakeholders, the Petroleum Industry Act 2021 (PIA)
18 U P S T R E A M GA Z E M AGA Z I N E
introduced a process that involves stakeholder input in
the development and administration of Regulations in
the Nigerian oil and gas industry.
Section 216 of the PIA now mandates the oil and gas
regulators to consult with stakeholders prior to final-
izing any regulations or amendments to regulations.
Stakeholders in this context refer to lessees, licensees
and permit holders that may be impacted and such other
VOL.3 2023
persons that may be interested in the subject matter of
the proposed regulation.
As part of its internal compliance and enforce-
ment framework, the Nigerian Upstream Regulatory
Commission (Commission) developed a procedure for
ensuring that it complies with the requirements set in
section 216 of the PIA. The procedure for the develop-
ment and issuance of Regulations in the upstream sector
require the following steps:
Drafting of the Regulations;
Internal review of the draft Regulations;
1. Publishing of the reviewed draft for stakeholder
input for a period of not less than twenty-one (21)
days in line with section 216 of the PIA;
2. Collation of stakeholder input;
3. Consolidation of stakeholder input and internal
review of draft Regulations against stakeholder
input;
4. Organizing and hosting public stakeholder con-
sultation forum to discuss concerns and provide
clarity on the intent of draft Regulations;
5. Review of resolutions reached at stakeholder
forum, cleanup and vetting of draft Regulations;
6. Engagement with Federal Ministry of Justice to
ensure draft Regulations are in line with extant
laws, forms and formats; and
VOL.3 2023
7. Gazetting of Regulations.
The Commission has taken this obligation seriously and
has since the coming into force of the PIA, dedicated
its resources towards developing regulations with five
successfully gazetted.
The five gazetted Regulations include:
1. Nigeria Upstream Petroleum Host Communities
Development Regulations 2022
2. Petroleum Royalty Regulations 2022
3. Domestic Gas Delivery Obligations Regulations 2022
4. Conversion and Renewal (Licenses and Leases)
Regulations 2022
5. Petroleum Licensing Round Regulations 2022
The following Regulations have gone through the
public stakeholder forum and internal review and vetting
and are in the process of being gazetted:
1. Upstream Petroleum Fees and Rents Regulations
2. Upstream Decommissioning and Abandonment
Regulations
3. Unitization Regulations
4. Acreage Management (Drilling & Production)
Regulations
5. Frontier Exploration Fund Administration
Regulations
6. Upstream Environmental Remediation Fund
Regulations
7. Upstream Petroleum Safety Regulations
8. Upstream Petroleum Environmental Regulations
The just concluded Phase Three (3) Stakeholder Forum
deliberated on five (5) Regulations on the 6th and 7th of
February 2023 and would under-go further review and
vetting and finally gazetting. The five Regulations are:
1. Upstream Petroleum Measurement Regulations
2. Advance Cargo Declaration Regulations
3. Significant Discovery Regulations
4. Domestic Crude Oil Supply Obligation Regulations
5. Gas Flaring and Venting (Prevention of Waste and
Pollution) Regulations
Efforts are already being implored towards drafting
at least six (6) Regulations for Phase Four (4) and the
proposed Regulations will go through similar stages of
the process put in place for Regulations development.
It is worthy to note that the process so far has yielded
positive results and feedback from industry and has
allowed for detailed scrutiny and analysis of all draft
Regulations and the opportunity to explore and cater
for alternative scenarios. It is the hope of the Commission
that the process in place helps to build trust and confi-
dence between the Commission and stakeholders and
foster compliance with the rules and policies being put in
place towards enabling business and ensuring a smooth
running of the upstream sector.
U P S T R E A M GA Z E M AGA Z I N E 19
 GUARANTEE OF SAFETY IN UPSTREAM
PETROLEUM INDUSTRY THROUGH
SAFETY STANDARDS DEVELOPMENT
AND COORDINATION
- A CONTINUOUS IMPROVEMENT PARADIGM SHIFT
- Briggs Tam-Miete Dawari & Aminu Sanusi -
A
recent key highlight in the oil and gas industry
in Nigeria is the passage of the Petroleum
Industry Bill (PIB) into the Petroleum Industry
Act (PIA): and the subsequent assent by the
President of the Federal Republic of Nigeria, on August
16, 2021. Part of the interesting aspects of the PIA (2021)
is the focus on ensuring a safer and environmentally
friendly operations in the upstream petroleum industry in
20 U P S T R E A M GA Z E M AGA Z I N E
Nigeria. Upon the passage of the PIA and creation of the
Nigerian Upstream Petroleum Regulatory Commission
(NUPRC), a management team was appointed, Lead by
Engr. Gbenga Komolafe FNSE, as the Commission Chief
Executive (CCE) and Captain John Roland Tonlagha as
the Executive Commissioner (EC) for Health, Safety,
Environment and Community (HSE&C). This prepared
the HSE&C Department to fulfil its mandate of ensuring
VOL.3 2023
...IN THE UPSTREAM
SEGMENT OF THE
PETROLEUM INDUSTRY IN
NIGERIA, PURSUANT TO
PETROLEUM INDUSTRY
INTERNATIONAL BEST
PRACTICES. THE SSD&C
UNIT IS CURRENTLY
UNDER THE HEALTH AND
SAFETY BRANCH IN THE
HSE&C DEPARTMENT OF
THE COMMISSION
healthy, safe, environmentally friendly and community
focused upstream petroleum operations.
In order to ensure the safety of people, environment,
assets, and guarantee the protection the reputation of the
industry and the Federal Government, the Commission’s
management immediately implemented the needed
reforms, creating (new) Safety Standards Development
and Coordination (SSD&C) Unit as a form of Continuous
Improvement (Kaizen) Management Office for the
research, identification, development, implementation
and performance monitoring of robust Safety Standards,
in the upstream segment of the petroleum industry in
Nigeria, pursuant to petroleum industry international
best practices. The SSD&C Unit is currently under the
Health and Safety Branch in the HSE&C Department of
the Commission.
It is pertinent to interrogate the wisdom, logic, and (reg-
ulatory operational safety) philosophy behind the creation
of the SSD&C Unit, and behind the justification for the
SSD&C functions as its main operational philosophy. This
is where the essence of the idea finds expression:
1. The review of the organization’s accident statistics
revealed the unavailability of robust and relevantly
adequate national Safety and Health Standards and
a standards development, enforcement, and mon-
itoring team by the regulator for the industry. This
situation was also idenfied during root cause analyses
of various petroleum industry accidents.
2. Internally, because of the series of environmental
desasters over the years, the Environment Branch
within the system had enjoyed some attention and
VOL.3 2023
had fashioned out rubost regulatory document like
the Environmental Guidlines and Standards for the
Petroleum Industry in Nigeria (EGASPIN), some thing
similar was therefore urgently needed for the Safety
Branch.
3. The need to initiate and test-run a solution-based
idea (Standards Development and Coordination Units)
for the promotion of research and documentation of
proven operational best practices as standards.
4. Over and above all, standards setting, enforcement
and monitoring forms part of the critical objectives
and technical regulatory functions of the Commission
as enshrined in Part III, Sections 6(f); 7(b)(c),(e) & (h);
10(d) of the PIA 2021, which specifically empowers the
Commission, among many things, to:
• Establish and enforce standards relating to
upstream petroleum operations.
• Set standards to promote the adoption of new
technologies for upstream petroleum operations.
• Determine, administer, and ensure the imple-
mentation and maintenance of technical
standards, codes, practices, and specifications
applicable to upstream petroleum operations
pursuant to good international petroleum
industry practices.
• Establish, monitor, regulate and enforce
health, safety and environmental measures
and standards relating to upstream petroleum
operation.
• Set, define, and enforce approved standards and
regulations for the concept, design, construction,
U P S T R E A M GA Z E M AGA Z I N E 21
 fabrication, operation, and maintenance and
decommissioning of plants, installations,
and facilities to be used or used in upstream
petroleum operations.

Given the necessary interaction of man, materials,

machinery, and the environment, accidents will always
have the potential to occur. To guarantee to a high degree
that the potential for occurrence or impact is limited,
various methods, techniques and operational processes
which have been tested and trusted as best practices are
created and properly documented as standards. When
good standards are created, properly implemented and
performance monitored, it shall beyond any doubt ensure
that the petroleum industry in Nigeria operates in a safe
and responsible manner, promoting sustainability and
protecting the health and well-being of everyone and all
stakeholders involved.
Excellent standards when developed, implemented, and
monitored for continuous improvement at various phases
of upstream petroleum projects and activities ultimately
lead to better dependability (functionality, reliability, and
availability) of personnel, equipment/machinery, oper-
ational environment, and the necessary engineering
and administrative controls which promotes accident/
incident prevention and mitigation. Eventually, in the
highly unlikely chance that accidents do occur, lessons
are immediately learnt, and the relevant sections of the
Standards are updated such that implementation and
monitoring guarantees the accident does not recur. This
cycle introduces the concept and process of continuous
improvement for the safety regulation function of the intervention for industry accidents/incidents. HSE&C Charter Document for the Commission.
Commission. Worthy of note is the fact that the contin- 8. Manage, co-ordinate and prepare periodic per- • Commenced work on a draft HSE&C Management
uous improvement principle and philosophy adopted formance and data analytics reports (dashboards/ System (MS) Document for the Commission.
fits perfectly into the Plan-Do-Check-Act global (and visualizations) including intelligent systems for Safety • Proposed the preparation of an HSE&C Commitment;
all-sector) High-Level Structure (HLS) by the International Standards Performance Mission; and Vision Statements for the Commission.
Standards Organization (ISO) for general and Occupational • Collated a set of safety rules and requirements on
Health and Safety Management Systems (SMS). The SSD&C Unit has currently commenced opera- behalf of the Commission tagged ‘’12 Basic Exemplary
tions and is ably headed by a Management Staff (Mr. Safety Tenets’’ (also called Life Saving/Golden Rules)
Consequently, the SSD&C Unit which has been brilliantly Aminu Sanusi) to ensure it meets its mandate by the as the general operational excellence rules for occu-
created for continuous improvement in the Commission’s Commission’s Leadership and by the PIA, 2021. Since its pational safety and industrial health for the upstream
safety regulations activities has the following as part of its commencement of operations in September of 2022, the petroleum industry in Nigeria.
many approved functions: Plate 1: The Generic and NUPRC SSD&C SSD&C Unit has been involved in the following among • Recommended and commenced in-house collation
1. Managing the identification, development, adoption/ Continuous Improvement Models many others: of information for ISO14001 and 9001 Certifications
acceptance, coordination, maintenance, interpreta- • Created the procedures for the development, imple- for the Commission
tion, implementation/enforcement, monitoring, mentation, and monitoring of Safety Standards by .
reviewing, and updating, safety standards reviews and continuous improvement. the Commission. It is hoped that the focus of the SSD&C Unit will
2. Coordinate the adoption of new technologies espe- 5. Participate in upstream petroleum projects and • Created the modalities for Safety Standards Review eventually be expanded beyond Safety, into the devel-
cially those relating to Safety and Safety critical operational activities as part of HSE&C Team, for the and Consent for projects and activities of operators. opment of technical regulations, guidelines, standards,
systems and equipment. assessment and recommendations for the adoption • Coordinated the drafting of the HSE&C Requirements codes, practices, specifications, and methods for the
3. Review the adoption of any new technology through or rejection of proposed standards from concept to for Field Development Plans (FDPs). HSE&C Department in general with increased number of
the review of their safety philosophy and design basis decommissioning phase. • Coordinated the review and update of HSE&C deliv- motivated, innovative and research driven personnel from
for a safe deployment by ensuring appropriate veri- 6. Coordinate the activities of commercial diving and erables in Upstream Petroleum Projects’ Permits and each of the core HSE&C Units.
fications, testing and trials. Safety and Emergency Response Training (SERT) Consent Registers in the light of the new PIA, 2021.
4. Identify and evaluate knowledge gaps through the Centers in the Petroleum Industry in Nigeria. • Redrafting of the Occupational Safety and Industrial
review of applicable global health and safety standards 7. Define, acquire, and collate data on the performance Health/Hygiene Standards currently at the in-house
and industry requirements for upstream facilities indicators and trends of Safety standards compliance technical committee stage.
and infrastructures, and propose opportunities for and maintain a database for predictive and preventive • Commenced work on a draft HSE&C Policy and

22 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 23

 by the Federal Government to put a definite end to
Upstream Petroleum Measurement Regulations and
nefarious activities of oil thieves in the oil-producing
the Advance Cargo Declaration Regulations. Others
regions recently. Part of the efforts at the tail end of
are Significant Discovery Regulations; Domestic Crude
2022 led to the discovery of a four-kilometre illegal oil
Oil Supply Obligation Regulations and; Gas Flaring,
connection from Forcados Terminal which had reportedly
Venting and Methane Emissions (Prevention of Waste
been in operation for nine years. Overall, 58 illegal taps
and Pollution).

METERING POLICY TO REDUCE

on oil facilities have been shut down by authorities.
The introduction of the Advanced Cargo Declaration
Regime (ACDR) scheme undoubt-

OIL THEFT AND INCREASE REVENUE

- Lekan Fatodu -
A CRUCIAL STRATEGY TO CHECKMATE ISSUES OF OIL
THEFT IN THE SECTOR WAS, HOWEVER, EARLIER
DISCLOSED BY THE NUPRC IN MAY. THE COMMISSION
ANNOUNCED IT WOULD UTILISE A TRACKING AND
METERING MECHANISM TO MONITOR CRUDE OIL
EXPORTS AND PROPERLY MEASURE OIL WELLS
edly reflects the Commission's
commitment to effectively curb oil
theft and deliver real value from
crude oil production to Nigeria's
economy.
Per the provisions under the
ADCR, every export-bound oil
cargo requires a unique identifier
and proper documentation, and
any cargo without such require-
ments is considered illegal and
attracts necessary penalties. More
importantly, the scheme supports
the installation of metering

Further coordinated interventions to arrest and

improve the situation have come from the Federal
Ministry of Petroleum Resources and the Nigerian
Upstream Petroleum Regulatory Commission
(NUPRC). The NUPRC, since assuming its position as
an authorised technical and commercial regulator of the
upstream sector as provided by the Petroleum Industry
Act (PIA), has begun to implement critical laws and reg-
ulations under the act.
In July 2022, after necessary stakeholder consulta-
tions, the Commission promulgated an initial six priority
regulations to guide oil exploration activities in Nigeria.
This was immediately followed by the announcement
of new regulatory policies, with the NUPRC reeling out
seven more regulations under the PIA in September
and bringing the total to 13.
Some of the crucial regulations announced after
the first two rounds of consultations to sanitise the
sector include the Nigeria Upstream Host Communities
Development Regulations, Nigeria Upstream Fees
and Rents Regulations, Nigeria Royalty Regulations,
Licensing Round Regulations, Upstream Petroleum
Environmental Regulations; Upstream Petroleum
Safety Regulations; and Upstream Petroleum
Decommissioning and Abandonment Regulations.
A crucial strategy to checkmate issues of oil theft

C
rude oil theft is one of the biggest challenges
facing Nigeria’s oil and gas sector. For decades,
large-scale theft from oil pipelines has crippled
production activities and led Nigeria to lose its
spot as Africa's top oil producer, with revenue from the
sector dwindling significantly.
The long-running issue has caused considerable
implications for Nigeria's oil revenue and economic
stability in recent times. The Nigerian National
Petroleum Corporation (NNPC) disclosed in 2022 that
the sector loses 470,000 barrels per day. About $700
million worth of crude oil, according to estimates from
the Corporation, is lost to oil theft monthly. Between
January and August 2022, the country recorded a $2
billion loss to oil theft.
There has, however, been a resolute commitment
in the sector was, however, earlier disclosed by the
NUPRC in May. The Commission announced it would
utilise a tracking and metering mechanism to monitor
crude oil exports and properly measure oil wells.
In February 2023, the NUPRC announced that it had
effectively begun stakeholder consultation on its third
round of new regulations under the Petroleum Industry
Act (PIA). And true to its pledge, the new regulations to
propagate transparency in the oil sector included the
equipment—Control of Lease Automatic Custody
Transfer (LACT) units—in the upstream petroleum
industry.
By all indications, the installation of the LACT units
is poised to play a crucial role in curtailing the expor-
tation of stolen crude oil, as it will allow effective and
transparent measurement of Nigeria's oil resources.
The unit is an important component of the oil pro-
duction and transportation process, especially in the

24 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 25


upstream sector of the oil and gas industry. It allows
the accurate measurement and transfer of oil from
the wellhead to pipelines, storage tanks, or tanker
trucks. With the installation, the upstream petroleum
industry can effectively measure oil quantity and avert
potential manipulation of figures that could result in
short-changing Nigeria of oil and gas revenue.
This will have a significant impact on the reduction
of oil theft. It will also boost production optimisation
and ultimately, revenue generation. For operators and
investors in the Nigerian oil sector, there couldn't be
a better assurance of transparency and investment
returns.
By using LACT units, oil companies can ensure that
they are accurately measuring the amount of oil being
transferred, which can help prevent underreporting
or overreporting of volumes. This is necessary for
more accurate billing and revenue sharing between
oil producers, transporters, and investors. Operators
and Investors will also realise increased profits from the
units' capacity to improve efficiency and reduce costs,
with reduced need for manual labour or risk of human
error.
Furthermore, the use of LACT units will also help
improve safety and reduce the risk of spills or accidents
during the transfer process. This can help reduce
potential liabilities and expenses related to cleanup and
remediation efforts and ultimately increase revenue for
investors by minimising downtime.
26 U P S T R E A M GA Z E M AGA Z I N E
NUPRC PRE-BID CONFERENCE
TO COMMENCE 2022/2023
MINI BID ROUND
- Joshua Dunu -
T
he Commission Chief Executive, Engr. Gbenga Komolafe declared
the 2022/2023 Mini Bid Round open at Eko Hotels & Suites Lagos.
The CCE played host to major oil and gas industry decision
makers and stakeholders at the conference with the theme
"Growing Upstream Investment through Licensing Rounds: The Bid
Process and Opportunities".
Engr. Komolafe presented the numerous investment opportunities in
Nigeria's deep offshore basin. He added that the process will be trans-
parent and technologically driven to prevent any hiccups.
There are other numerous benefits of the NUPRC's
applaudable introduction and implementation of the
Advanced Cargo Declaration Regime (ACDR). The
Commission, under the astute leadership of Engr.
Gbenga Komolafe is increasingly inspiring operators,
investors, stakeholders, and Nigerians with confidence
about the future of the country's oil sector.
With the necessary support, compliance, and
adherence to these NUPRC regulations by all concerned,
the sector would begin to recover from the nefarious
activities that have caused its decline for more than two
decades in no time.
VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 27

NEW REGULATORY
ENVIRONMENT TO STIMULATE
MORE INVESTMENTS AND
OPERATIONS
- Nze David Ugorji -
N
igeria’s oil and gas sector has struggled in recent
years to attract investors despite the country’s
heavy reliance on oil. Investor scepticism in the
industry has been largely driven by indiscrimi-
nate oil exploration practices, unstable regulatory policies,
and insecurity.
A paucity of investments in the industry has been con-
sequential over the years. Nigeria’s oil sector contributed
28 U P S T R E A M GA Z E M AGA Z I N E
IN JUNE LAST YEAR, THE
NUPRC IN LINE WITH ITS
FINALISED REGULATORY
POLICIES ANNOUNCED
THE NIGERIA UPSTREAM
HOST COMMUNITIES
DEVELOPMENT
REGULATIONS AND
PROCEDURE GUIDE TO
SERVE AS A NAVIGATIONAL
AID FOR THE
IMPLEMENTATION OF
THE HOST COMMUNITY
DEVELOPMENT TRUST
(HCDT)
support, the Federal Government
in Q4 2022 set up the Oil and Gas
Investment Promotion Centre at the
Ministry of Petroleum Resources in
Abuja.
The Nigerian Upstream Petroleum
Regulatory Commission (NUPRC) has
also not relented in ensuring there
is significant improvement in the
industry’s ability to attract investors.
Since its establishment in 2021 under
the provisions of the Petroleum
Industry Act (PIA) to monitor the oil
and gas industry and ensure compli-
ance with relevant regulations and
laws, the NUPRC has committed
to ensuring sustainable hydrocar-
bon exploration and production
at optimum cost. Its regulatory
laws are conceived to efficiently
5.66% to the country’s total GDP in Q3 2022, recording an deal with issues of environmental
average daily oil production of 1.20 million barrels per day remediation, decommissioning, and
(mbpd). The figure was significantly lower than the 7.49% abandonment.
GDP contribution and the daily average production of 1.57 After various stakeholder delib-
mbpd recorded in the same quarter of 2021. erations on regulations that will
In its bid to increase the Foreign Direct Investments present further opportunities
(FDI) into the Nigerian oil and gas industry and make it for new investments and higher
easy for potential investors to have access to necessary revenue for both government and
VOL.3 2023 VOL.3 2023
investors, the NUPRC developed
an initial six priority regulations
including the Nigeria Upstream
Host Communities Development
Regulations, Nigeria Upstream Fees
and Rents Regulations, Nigeria
Royalty Regulations, Conversion and
Renewal Regulations, Domestic Gas
Delivery Obligations Regulations,
and Licensing Round Regulations. In
September, the Commission intro-
duced seven new regulations which
include the Acreage Management
(Drilling and Production) Regulations,
Upstream Petroleum Environmental
Regulations; Upstream Petroleum
Environmental Remediation Fund
Regulations; Upstream Petroleum
Safety Regulations; Utilisation
Regulations; Upstream Petroleum
Decommissioning and Abandonment
Regulations and; the Frontier
Exploration Fund Regulation.
Consultation on the third round
of regulations effectively kicked off
recently, as the NUPRC prepares to
introduce five new guidelines under
the Petroleum Industry Act (PIA).
These sweeping reforms that
are aimed at achieving operational
efficiency, higher productivity, cost
optimization, and a cleaner and safer
upstream environment are poised
to stimulate investor and operator
interests in the oil and gas sector in
the imminent future.
Notably, fostering sustainable
shared prosperity and providing
direct social and economic benefits
from petroleum operations to host
communities—a core agenda of
the PIA—would allow smooth and
optimum operations in oil-rich
regions. In June last year, the NUPRC
in line with its finalised regulatory
policies announced the Nigeria
Upstream Host Communities
Development Regulations and
Procedure Guide to serve as a naviga-
tional aid for the implementation of
the Host Community Development
Trust (HCDT).
Creating direct economic
benefits for host communities,
such as employment opportunities,
training programs, and community
U P S T R E A M GA Z E M AGA Z I N E 29

ANOTHER CRUCIAL REGULATORY POLICY
IMPLEMENTED BY THE NUPRC TOWARDS IMPROVING
THE OIL AND GAS INDUSTRY OUTLOOK TO POTENTIAL
INVESTORS IS THE NIGERIA ROYALTY REGULATIONS.
UNDER THE ROYALTY REGULATION, UPSTREAM
OPERATORS ARE REQUIRED TO PAY ROYALTIES SUBJECT
TO AN ANNUAL RISE OF TWO PER CENT
attractive environment for operators
and investors include the prioritisa-
tion of regulatory actions to drive
the industry towards effective
exploitation and monetization of
gas resources, with gas having been
adopted as a transition fuel in the
energy transition regime. The regu-
latory policies imply that there would
be significant reduction or abolition
of indiscriminate gas-flaring activi-
ties in oil fields.
Gas flaring is a major source of
30 U P S T R E A M GA Z E M AGA Z I N E
development projects will ultimately
lead to better relationships between
operators and host communities,
thereby reducing the risk of social
conflicts or disruptions of licensed
oil exploration activities. As such,
petroleum operations will not only
stimulate local economic growth
but attract investments from local
and foreign investors.
Similar actions by the NUPRC
under the guidance of Engr. Gbenga
Komolafe to create a healthy and
greenhouse gas emissions and con-
tributes to climate change. It also
causes air pollution, which can have
negative impacts on human health
and the environment. Flaring gas
is also a waste of valuable energy
resources that could be used for
power generation or other industrial
processes. With the new regulations
by the NUPRC to drastically reduce
or abolish gas flaring, oil companies
operating in Nigeria will be able to
demonstrate their commitment to
environmental and social sustainabil-
ity and also improve their operational
efficiency, reduce costs, and increase
profitability. These actions will
undoubtedly be attractive to foreign
investors who prioritise such values.
Another crucial regulatory policy
implemented by the NUPRC towards
improving the oil and gas industry
outlook to potential investors is the
Nigeria Royalty Regulations. Under
the royalty regulation, upstream
operators are required to pay
royalties subject to an annual rise of
two per cent. Providing a stable and
transparent framework to determine
the number of royalties that oil and
gas companies must pay to the
government for the right to extract
natural resources is a critical strategy
that will help attract foreign invest-
ments in the oil and gas industry.
When royalty rates are set clearly
and consistently, investors can
better evaluate the potential risks
and returns of investing in the sector.
It also encourages transparency
which can help reduce corruption, as
well as the risk of disputes between
investors and the government over
royalty rates. The NUPRC’s willing-
ness to promote fairness and equity
in the sector will indubitably help
build confidence in the investment
climate and attract foreign capital.
The NUPRC, with its array of reg-
ulatory reforms, is setting the oil and
gas industry on its path to becoming
a reliable revenue generation outlet
for Nigeria again. Undoubtedly, a
turnaround in fortune in investor
and operator interests in the once
bubbling sector is imminent.
VOL.3 2023
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another new Five Star Hotel in Abuja, even
when they offer similar services as other
offers a wide range of amenities including,
on-site tantalizing restaurants & bars,
top hotels; but the way they deliver these pool, gym, comprehensive spa treatment &
complements is distinctively theirs; done wellness rooms, with modern conference
with profound passion and a genuine intent facilities.
to deliver memorable moments which leaves
guests feeling not only relaxed, but enriched
6, Sokode Crescent, Wuse Zone 5, Abuja, Nigeria.
TEL: +234 903 854 2600, +234 7031161024 EMAIL: info@johnwoodhotel.com
vast range of modern facilities, freshly made
local & continental cuisines, and tastefully
furnished rooms.
BON HOTEL ELVIS
EMAIL: www.bonhotels.com/elvis
ATucked away in a serene district in the to deliver memorable experiences of comfort
heart of the modern capital of Nigeria, Four
Palms Residence Abuja, features Luxury
and adventure. Located in the heart of Abuja
close to the Business District, Four Palms
residences that combine comfort, style and Residence offers luxury for Clients with
African artistic expressions. With outstanding impeccable taste.
facilities and exclusive in-house services.
This brand-new property has been conceived
with the lifestyle preferences of today’s
astute travelers, offering distinctive service
38, Libreville Crescent, Wuse 2, Abuja, Nigeria.
TEL: +234 913 563 4046 EMAIL: info@fourpalmsresidence.com
This beautifully designed hotel combines
historic legacy with contemporary luxury at
one of the city’s most sort after location.
MUSADA HOTELS & SUITES
U P S T R E A M GA Z E M AGA Z I N E 31
 WHERE TO STAY IN LAGOS
NORDIC HOTEL
When you pull up through the throngs
of motorists and tourists who choke the
roads in the area during peak hours, you’re
ceremoniously welcomed by doormen in
well tailored and fitted uniforms; you have
that pinch me feeling of “Wow, I’m really
staying here?” Because this iconic hotel
is such a landmark, there are tourists and
locals who frequent the hotel’s restaurants,
1a Ozumba Mbadiwe Road, Victoria Island, Lagos, Nigeria.
TEL: +234 (0) 7080610000 EMAIL: info.lagos@radissonblu.com
LAGOS CONTINENTAL HOTEL
The Wheatbaker Hotel gets votes for good
reason: There’s its prime location, of
course, just minutes from putting guests
next to embassies, banks, malls, and iconic
landmark attractions. You can expect
colorful, modern decor in its spacious and
well-appointed guest rooms, with top range
state of the art amenities.
This defiantly cool, multiple award winning
4, Onitolo Road, Ikoyi, Lagos, Nigeria.
TEL: +234 1 277 3560 EMAIL: reservation@thewheatbakerlagos.com
32 U P S T R E A M GA Z E M AGA Z I N E
From the second you walk into Nordic Hotel,
it’s hard not to be impressed. Those looking
for luxury, comfort, and a home away from
home, will get them in abundance here.
Located across the lagoon & within strolling
distances from embassies, banks, shopping
malls, top government establishments, and
minutes from the ocean beach fronts. This
newly opened 21st century gem boasts lavish
258 Kofo Abayomi Street, Victoria Island, Lagos, Nigeria.
TEL: +234 (0) 1 448 2777 EMAIL: info@nordichotellagos.com
shops, bars, or sit & chat by the pool side
overlooking the lagoon, while sipping various
drinks, or eating well prepared meals while
enjoying scenic views of the city. Radisson
Blu Anchorage Hotel has a generous list of
modern amenities, making it a much sort
after place of choice for private and public
events in the beautiful city of Lagos.
You wouldn’t think you’d find this lap
of luxury in West Africa, but the Lagos
Continental Hotel is proving people wrong.
Strategically positioned in the heart of
Lagos State, known for its go-go-go energy;
Lagos Continental Hotel is the tallest hotel
in West Africa, boasting 358 elegant rooms,
suites and a presidential suite with amazing
unhindered views of the Atlantic ocean,
Plot 52, Kofo Abayomi Street, Victoria Island, Lagos Nigeria.
TEL: +234 1 236 6666 EMAIL: info@thelagoscontinental.com
luxury property in the heart of downtown
Lagos, has always been such a trendsetter
which regularly host visiting local and
international guest, top business, media,
sports, entertainment and political
personalities over the years. So for those
wanting the ultimate Art Boutique Hotel
experience, the Wheatbaker is the hippest
one in the cool Ikoyi neighborhood.
interiors and impeccable service, making
guests feel well relaxed. Guest rooms
are regal, designed with elegant modern
furniture and appliances. It’s easy to indulge
here, but don’t miss the health & wellness
spa, pool, gym, restaurants, bar, meeting,
events & conferencing rooms.
RADISSON BLU ANCHORAGE
Lagos creeks and the city. The grand hotel
flanked by beaches, embassies, shopping
malls, private and public organisation offices,
offers fun-seeking individuals, families and
business travelers alike with sleek, modern
décor, state-of-the-art amenities, and superb
service, making it the most spectacular place
to stay!
WHEATBAKER HOTEL
VOL.3 2023
MINISTER OF STATE
FOR PETROLEUM
RESOURCES HOSTS
SPANISH FOREIGN
AFFAIRS MINISTER
- Kehinde Akinfenwa -
T
he Honourable Minister of State for Petroleum
Resources, Chief Timipre Sylva, recently hosted
the Spanish Minister for Foreign Affairs H. E.
Jose Manuel Albares, and decision makers of the
Spanish oil and gas sector to a business meeting.
The objective of the meeting was to discuss modal-
ities for the implementation of signed agreements
between the two countries. The bilateral agreement
covers areas of investment opportunities in the
Nigerian oil and gas sector.
The Chief Executive of the Nigerian Upstream
Petroleum Regulatory Commission (NUPRC) Engr.
Gbenga Komolafe, who was also at the meeting, informed
the delegation that the visit is very timely and appropriate
in terms of investment opportunities, as the Commission
on behalf of the Federal Government has launched the
2022 Mini Bid Round exercise for deep offshore fields
and the Nigerian Gas Flare Commercialisation Programme
among other opportunities that exist in the Nigerian oil
and gas industry.
The meeting held at the Honourable Minister of State
for Petroleum Resources office, NNPC towers, Abuja.
VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 33
 A BALANCED AND JUST
SYLVA, KYARI, OTHER INDUSTRY APPROACH TO THE CLEAN
LEADERS GRACE OLOIBIRI MUSEUM ENERGY TRANSITION

GROUNDBREAKING MUST RECOGNIZE THAT

- Favour Olusola -
Companies in Nigeria, Mr Osagie
Osunbor.
Others are the Managing
Director, Niger Delta Development
Commission, (NDDC), Mr Samuel
Ogbuku, the Deputy Governor,
Bayelsa State, Senator Lawrence
Ewhrudjakpo, the Amayanabo of
Nembe and Chairman, Board of
Directors of Nigeria LNG Limited,
Dr Edmund Daukoru and a host of
other dignitaries.
According to the minister, the
project has one of the lasting
legacies of President Muhammadu
Buhari in key sectors of the
economy.
At the site of the museum
project, in Otuabagi which is also
the location of Shell’s Oil Well1, the
FINANCE IS KEY AND
CURRENTLY SKEWED
AWAY FROM THE
DEVELOPING NATIONS
THAT NEED IT MOST
product offerings, project delivery,
and long-term sustainability.”
In his speech, the Managing
Director of the Niger Delta
Development Commission
(NDDC), Dr Samuel Ogbuku,
commended the project
promoters, namely, Petroleum
Technology Development Fund
(PTDF), NCDMB, Shell Petroleum
Development Company and its
Joint Venture Partners, and Bayelsa
State Government.
Ogbuku said the NDDC would
enhance the work of the partners
by constructing “a befitting access,” a solid road from thousands of participants at key oil and gas industry
the state capital, to a monument of such magnitude. seminars, symposia, conferences, and workshops.

M
inister of State for Petroleum Resources,
Chief Timipre Sylva, has said that the com-
pletion of Oloibiri Museum and Research
Centre (OMRC) would rectify years of his-
torical negligence and oversight and preserve the
heritage and developments in the oil sector in Nigeria.
This statement was made at the groundbreaking
ceremony of Oloibiri Museum and Research Centre
(OMRC) and Nigerian Content Development Monitoring
Board (NCDMB)’s Conference Hotel Project.
In attendance were distinguished industry players
and business leaders in the Nigerian oil and gas industry
who pledged their unwavering commitments to the
execution and sustenance of the project.
Chief Timipre Sylva was accompanied by the Group
Chief Executive Officer (GCEO) of the Nigerian National
Petroleum Company Limited (NNPCL), Mr Mele Kolo
Kyari, the Executive Secretary of the Nigerian Content
Development and Monitoring Board (NCDMB), Engr
Simbi Kesiye Wabote, and the Country Chair, Shell
Minister said: “By starting work
on the Oloibiri Museum and Research Center (OMRC),
we have taken a giant step towards correcting a his-
torical oversight by erecting a befitting monument at
the exact ground of Oloibiri Oilfield where commercial
quantities of oil were first discovered in Nigeria and
production began in 1957.”
Recalling how past attempts and foundation laying
ceremonies since the era of late President Shehu
Shagari in 1981 yielded nothing, Chief Sylva stated
with emphasis that the “Groundbreaking is different
from foundation laying,” adding that the ceremony he
was there to perform signaled the actual take-off of the
project as the contract had already been awarded to a
reputable construction company.
The Executive Secretary, NCDMB, Engr Simbi Kesiye
Wabote, explained what makes the present under-
taking different from previous attempts, stating
that, “key considerations that enabled us to get to
this ceremony we are having today include: credible
partnerships, funding model, governance framework,
NNPC Limited Group Chief Executive Officer, Mr
Kyari, pledged to provide sufficient support for the
project, assuring, “We will do everything possible to
support this…in NNPC Limited, we are determined to
ensure value is returned to everyone, particularly where
the value is created.”
The benefits of the OMRC project to Bayelsa, the
nation and petroleum industry, according to the
Minister, include “the retention of historical artifacts of
our oil and gas journey over the decades, dissemination
of knowledge, creation of an attractive destination for
tourists, restoration of the image of Oloibiri community,
provision of a conducive environment for research and
innovation and job creation.”
Apart from the OMRC, the Minister also performed
the groundbreaking of the NCDMB Conference Hotel
Project at Swali, adjacent to the Nigerian Content Tower.
On the benefits of the 3-star Conference Hotel, Chief
Sylva said, it would “provide much-needed accommo-
dation facilities to support the Board’s 1000-seater
ultra-modern Conference Centre that regularly hosts
He added that it would accommodate tourists,
researchers and others that visit the Oloibiri Museum
as well as boost the attraction of Yenagoa as a tourist
destination.
NCDMB’s Executive Secretary, Engr. Simbi Wabote,
explained that the partnership on the project had
worked effectively and efficiently “to deliver the project
feasibility study, environmental impact assessment
(EIA), geotechnical survey, site clearing, and the archi-
tectural design.”
According to him, they were able to obtain an archi-
tectural masterpiece, “which reflects our desire to
preserve the heritage of oil and gas in Nigeria and
further enhance in-country research and development.”
On resources for the project, he said that the funding
has been properly planned to ensure that it does not
end up midway.
“The funding model is one of the main focus areas we
deliberated upon to ensure that today’s groundbreak-
ing ceremony is not another fluke,” Wabote assured.

34 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 35

 HYDROCARBON RESERVES GROWTH IN A
CONSTRAINED ENERGY TRANSITION ERA
- Victor U. Georgeson -
D
iscovered hydrocarbon volume should be in
such quantity that is enough to offset the cost
of exploration, development, production, and
abandonment as well as giving a reasonable
profit margin to be considered for development. Such
Minimum Economic Quantity of hydrocarbon volume
is referred to as reserves. The quantity that satisfies
this condition is not static and definite for all times but
varies with the market forces that influence hydrocar-
bon price. Hydrocarbon Resources are subdivided into
Commercial and Sub-Commercial. The estimated recov-
erable commercial quantities are classified as Reserves
whereas the sub-commercial resources are termed
Contingent Resources.
Reserves, therefore, are those quantities of petroleum
anticipated to be commercially recoverable by applica-
tion of development projects to known accumulations
from a given date forward under defined conditions.
Reserves must further satisfy four criteria: they must
be discovered, recoverable, commercial, and remaining
36 U P S T R E A M GA Z E M AGA Z I N E
(as of the evaluation date) based on the development
project(s) applied. Reserves are further categorized in
accordance with the level of certainty associated with
the estimates and may be sub-classified based on
project maturity and/or characterized by development
and production status. Nigeria ranks 11th position on a
top-20 list of countries with largest proven oil reserves
in the world and first in Africa.
The upstream oil and gas industry outlook in Nigeria
have been robust. It was observed that nearly 200% of
proved reserves produced in Nigeria from 1970-2005
have been replaced by new reserves, indicating that the
petroleum business environment in Nigeria compares
favourably with the global environment. The replace-
ment ratio shows the extent to which Nigeria has
pushed the reserves crunch date back in time and
the willingness to remain a viable player in the global
petroleum industry for years to come (Iledare 2007).
The Nigerian government even set a strategic goal
to increase the country’s proven oil reserves to 40.0
billion barrels and increase its production capacity
to 3.0 million barrels which requires investment of
about $9-10 billion annually over the next five years to
achieve. However, this lofty national economic vision
seems to be at risk as remarkable decline in national
crude oil reserves is observed since mid-2008.
VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 37
 The reserves growth policy has its objectives as:
1. To establish a framework that will stimulate
reserves growth.
2. To accelerate Federal Government’s target/aspira-
tion of 40.0 billion barrels oil reserves and increase
gas reserves volumes in the shortest time possible.
3. To provide Incentive packages, where appropriate,
that will propel operators into aggressive explora-
tion thereby increasing reserves.
4. To ensure continuous and sustainable revenue flow
from exploration and production activities.
5. To foster investments influx in the oil and gas
industry.
6. To ensure the provision of adequate, reliable, and
sustainable supply of energy for the domestic
economy and the global market in general.
To encourage and stimulate reserves addition through:
• deep drilling,
• delineation of fields and reservoirs through drilling,
• accessing by-passed pools in existing fields,
• field revisions/studies.
The effort discovered an estimated volume of 66
billion boe presently locked-in, in 79 concessions
across the prolific Niger Delta basin. 16 billion boe of
this volume are from deep play prospects. A deep play
is a mappable reservoir area below the shallow con-
ventional reservoir intervals with similar geological
controls. They provide low-hanging fruits in explora-
tion efforts in comparison to new exploration venture.
The result of the reserves growth opportunities in the
already explored fields and concessions are as shown
in the Table 1.0 below.

CONTRACT TYPE TERRAIN NO. OF BLOCKS NO. OF IDENTIFIED ESTIMATED LEADS

LEADS & & PROSPECTS VOL.
PROSPECTS (MMBOE)
Figure 1.0: Observed crude oil reserves decline since mid-2008 Joint Venture (JV) Land 24 272 12,682.30

Shallow Marine 12 166 11,404

Production Sharing Land 5 39 1,611.98

Contract (PSC)
Shallow Marine 9 55 4,223.57

Deep Offshore 16 136 19,718.83

Sole Risk (SR) Land 4 34 2,476.91

Shallow Marine 4 36 2,732.83

Deep Offshore 4 36 9,420.00

Service Contract Shallow Marine 1 3 1,383.50

(SC)
TOTAL 79 77 65,653.92

Table 1.0: Reserves Growth Opportunities in Nigeria

Figure 2.0: Crude Oil Life Index vs Depletion Rate in the Last decade
Analysis of the petroleum industry has shown:
1. High continuous decline in onshore production in
Nigeria which is progressively replaced by high-cost
offshore oil.
2. Progressive decline in oil reserves.
3. 60% of fields in the matured Niger Delta basin are
at decline phase.
To ameliorate this trend, the Commission had iden-
tified some measures to forestall the observed decline
of the crude oil reserves and reverse it to growth path.
This led credence to the need for policy on Reserve
Growth to maintain the national vision to achieve 40.0
billion crude oil reserves and 3.0million per day pro-
duction rate.
The analysis in the table 1.0 above shows the volume
of discoverable hydrocarbon reserves in crude oil equiv-
alent in Nigeria. This is estimated to require about $9
-10Billion annual investment for five years to unlock.
The challenge is to raise the investment capital in an
energy transition period where other sources of energy
are seriously competing for such investment capital.
The divestment and exit of international oil companies
from Nigerian oil fields worsens the situation. Efforts
should be made to encourage the indigenous players
who have demonstrated competence and make
remarkable achievements in the Nigerian oil and gas
industry to rise to the occasion to bridge the invest-
ment gap. The government-owned Nigerian National
Petroleum Company E&P Limited (NEPL) is positioned
by the Petroleum Industry Act (2021) as a full commer-
cial entity in the Nigerian Oil and Gas industry to take
up some of these assets.
At this point, we cannot rule out the importance of
Foreign Direct Investment in achieving this goal. The

38 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 39

 DATE OF LEASE COMMENTS
EXPIRATION

23.04.2025
19.12.2025
17.08.2034

17.08.2034
17.08.2034

17.08.2034
17.08.2034
13.06.2027

17.08.2034
13.06.2027
13.06.2027
24.04.2037
24.03.2039
13.06.2027
16.09.2037
16.09.2037
16.10.2038
STATUS OF OIL PROSPECTING LICENCES (OPLs)

24.04.2005
(Deep Offshore) 20.12.2005
18.08.2014

18.08.2014
18.08.2014

18.08.2014
18.08.2014
18.08.2014
14.06.1997

14.06.1997
14.06.1997
25.04.2017
25.03.2019
14.06.1997
17.09.2017
17.09.2017
17.10.2018
DATE OF
GRANT

Niger Delta (Continental Shelf)

Niger Delta (Continental Shelf)
Niger Delta (Continental Shelf)

Niger Delta (Continental Shelf)

Niger Delta (Continental Shelf)
Niger Delta (Continental Shelf)
(Cont. Shelf)
GEOLOGICAL LOCATION/

Niger Delta (Cont. Shelf)

Niger Delta (Onshore)

Niger Delta (Onshore)

Niger Delta (Onshore)
Niger Delta (Onshore)
Niger Delta (Onshore)
Niger Delta (Onshore)
Niger Delta (Onshore)

(Deep Offshore)"
"Niger Delta
Niger Delta
Niger Delta
TERRAIN
huge capital investment required cannot be shoul- increase in income and more purchasing power to
dered internally alone. The NEPL is mandated by the locals, which in turn leads to an overall boost in

BELEMA-40%, NNPC-60%
AITEO-45%, NNPC-55%

AMNI-40%, NNPC-60%
PIA (2021) to commit 30% of her profits to explore and targeted economies.

AMNI-60%, Total E&P-

CHEVRON -55% Lukoil

AMALGAMATED -100%

OANDO-52.5%,EXXON
NNPC-60%, CNL-40%
NNPC-60%, CNL-40%
NNPC-60%, CNL-40%

NNPC-60%, CNL-40%
NNPC-60%, CNL-40%
NNPC-60%, CNL-40%
NNPC-60%, CNL-40%
NNPC-60%, CNL-40%
AMNI-60%, ELF-40%

ATLAS-70%,SUMMIT
develop the frontiers. Therefore, NEPL may not have 3. Development of resources: The development of

DISTRIBUTION
enough capital outlay to invest in such other capi- human capital resources is a big advantage of

MOBIL-47.5%
tal-intensive ventures. Other indigenous operators FDI. Foreign direct investment allows for resource
and existing international oil companies should take transfers and the exchanges of knowledge, technol-

OIL-30%
EQUITY

-45%
advantage of the favourable fiscal incentives provided ogies, and skills. The skills gained by the workforce

40%
in the PIA (2021) to invest in these exploration ventures. through training increases the overall education
However, attracting other foreign investors is what the and human capital within a country. Countries

(SQ.KM)
country needs now to boost the national hydrocarbon with FDI are benefiting by developing their human

AREA

1,204
reserves. resources while maintaining ownership.

1065
1472

803
547
540

743
156
304
145
849
772
536
247
438
931

51
Foreign Direct Investment (FDI) is made when a
business takes controlling ownership in a company, It is worthy to note that Sections 2 (a), (c)& (d) of the

CONTRACT
sector, individual, or entity in another country. Through PIA (2021) is intended to create enabling environment
FDI, foreign companies are directly involved with day- to attract foreign direct investments to the Nigerian

TYPE

PSC
PSC
JVC
JVC
JVC

JVC
JVC
JVC
to-day tasks from the other country, resulting in a Petroleum Industry. The Nigerian Government and

JVC

JVC
JVC
JVC
JVC

SR
SR
SR

SR
transfer of money, knowledge, skills, and technology. In all other petroleum industry stakeholders should,
general, FDIs are made in open economies that have a therefore, be more intentional in the implementation

CONCESSION
skilled workforce and the potential for growth. Foreign of the PIA (2021) to achieve these laudable objectives.

OML 131
OML 132
OML 109
OML 156
OML 112

OML 117
direct investment takes place when an investor estab- Establishing at this juncture, an Energy Bank in

OML 95
OML 90
OML 86

OML 88
OML 91
OML 89
OML 51
OML 49
OML 55
OML 52
OML 29
HELD
lishes foreign business operations or acquires foreign Nigeria to deliver the necessary financial support
assets including initiating ownership or controlling to alleviate the funding gaps as identified above as

OML 52 (AMNI OML 52)

interest in a foreign company. The key benefits of FDIs well as fund the entire energy transition process is

NNPC/AITEO EASTERN

AMNI INTERNATIONAL

NNPC/CHEVRON NIG.
NNPC/CHEVRON NIG.
E&P CO. LTD (AITEO)

PETR. DEV. CO. LTD

CHEVRON NIG. LTD.

are: desirable. The bank will also complement the efforts

ATLAS PETROLEUM
AMALGAMATED OIL

NNPC/BELEMAOIL
NNPC/AMNI INT'L

PRODUCING LTD.
PETROLEUM LTD
1. Economic development stimulation: FDI can of the proposed African Energy Bank by the African

OF COMPANY
stimulate a target country’s economic develop- Petroleum Producers Association. Nigeria needs to

OANDO PLC
CO. NIG..
ment through huge capital in-flow and stimulate quickly invest to discover and recover the massive

NIG. LTD
S/N NAME
the local country’s economic growth. 66billion boe of hydrocarbon reserves in addition to the

LTD.
LTD.
2. Employment and economic boost: FDI creates new existing 37billion crude oil reserves within the energy
jobs and more opportunities as investors build new transition period.
companies in foreign countries. This can lead to an

8
7
6
5
4
3
2
1
40 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 41
 S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL LOCATION/ DATE OF DATE OF LEASE COMMENTS
42

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION TERRAIN GRANT EXPIRATION

9 CONOIL PRODUCING OML 103 SR 914 CONOIL -100% Niger Delta (Onshore) 20.12.2016 19.12.2036
U P S T R E A M GA Z E M AGA Z I N E

LTD
OML 136 SR 1,294 CONOIL-60%,TOTAL-40% Niger Delta (Continental Shelf) 27.07.2006 26.07. 2026
OML 153 PSC 531 CONOIL -100% Niger Delta (Continental Shelf) 15.02.2018 14.02.2038
10 CONTINENTAL OIL & OML 59 SR 835 CONOIL -100% Niger Delta Onshore 06.06.1998 05.06.2028
GAS COMPANY LTD.
(CONOG)
OML 150 PSC 428 CONOIL -100% Niger Delta Onshore 10.03.2016 09.03.2036
11 DAMAS OML 110 SR 966 DAMAS -100% Niger Delta (Continental Shelf) 5.02.2021 04.02.2041 "1. Lease was
PETROCHEMICALS & revoked in 2019 from
REFINERY Cavendish Pet. Nig.
2. Award is yet to be
concluded"
12 DUBRI OIL CO. (NIG.) OML 96 SR 226 DUBRI - 100% Niger Delta (Onshore) 02.05.2013 01.05.2033
LIMITED
13 TOTAL EXP & PROD. OML 138 PSC 906 ESSO-30%,CNL-30%, "Niger Delta 17.05.2007 16.05.2027
NIG. LTD. TOTALENERGIES- (Deep Offshore)"
20%NEXEN-20%
OML 139 PSC 904 TOTAL-100% "Niger Delta 17.05.2007 16.05.2027
(Deep Offshore)"
NNPC/TOTAL EXP & OML 99 JVC 342.8927 NNPC-60%, TOTAL-40% Niger Delta (Continental Shelf) 02.05.2013 01.05.2033
PROD.NIG. LTD.
OML 100 JVC 285 NNPC-60%, TOTAL-40% Niger Delta (Continental Shelf) 02.05.2013 01.05.2033
OML 102 JVC 755 NNPC-60%, TOTAL-40% Niger Delta (Continental Shelf) 02.05.2013 01.05.2033
OML 58 JVC 518 NNPC-60%, TOTAL-40% Niger Delta (Onshore) 14.06.2007 13.06.2027
14 EMERALD ENERGY OML 141 SR 1295 EMERALD-53.9%, AMNI Niger Delta (Onshore) 08.11.2007 07.08.2027
RES. LTD INTNL-44.1%, SUPERNOVA
ENERGY(BLUEWATER
GROUP)-2%
15 ENAGEED RESOURCES OML 148 PSC 870 ENAGEED -100% Niger Delta (Onshore) 15.05.2015 14.05.2035
LTD.
16 NNPC/EROTON E&P OML 18 JVC 1,035 "NNPC-55%, EROTON Niger Delta (Onshore) 22.10.2018 21.10.2038
CO. (EROTON) -27%,
SAHARA FIELDS -16.2 ,
VOL.3 2023

BILTON -1.8 %"

17 ESSO E & P. LTD OML 133 PSC 1,102 EXXON - 56.25%, "Niger Delta 08.02.2006 07.02.2026
SNEPCO-43.75% (Deep Offshore)"

S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL LOCATION/ DATE OF DATE OF LEASE COMMENTS
VOL.3 2023

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION TERRAIN GRANT EXPIRATION

OML 145 PSC 1293 ESSO 21.0526%, "Niger Delta 30.05.2014 29.05.2034
SVENSKA -21.0526, (Deep Offshore)"
OANDO -21.0526%,
CHEVRON -21.0526%,
NPDC -15.7896%
OML 154 PSC 466 TEPNG -18%, ESSO -27%, "Niger Delta 28.06.2018 27.06.2038
CHEVRON -27%, NEXEN (Deep Offshore)"
-18%, NPDC 10%
18 NNPC/FIRST E&P OML 83 JVC 125 FIRST E&P/DANGOTE-45%, Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
NNPC-55%
OML 85 JVC 521 FIRST E&P/DANGOTE-45%, Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
NNPC-55%
19 NNPC/WEST AFRICAN OML 71 JVC 116 WAEP/DANGOTE-45%, Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
E&P CO. LTD (WAEP) NNPC-55%
OML 72 JVC 1,129 WAEP/DANGOTE-45%, Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
NNPC-55%
20 GEC PETROLEUM OML 149 PSC 409 NAOC – 48%, GLOBAL Niger Delta (Onshore) 05.02.2015 04.02.2035
DEVELOPMENT ENERGY -42%, BLJ
COMPANY LTD ENERGY Ltd – 10%
(GLOBAL ENERGY)
OML 151 PSC 171 GPDC 51%, NAE 49% Niger Delta (Continental Shelf) 10.03.2016 09.03.2036
21 FAMFA/STAR DEEP OML 127 SR 641 NNPC-50%, CNL- "Niger Delta 25.11.2004 24.11.2024
WATER PETROLEUM 32%,FAMFA-10%, (Deep Offshore)"
LIMITED PETROBRAS-8%
22 MOBIL PRODUCING OML 104 JVC 294 NNPC-60%, MPN-40 % Niger Delta (Continental Shelf) 10.01.2019 09.01.2039
NIG. UNLIMITED
OML 67 JVC 1009 NNPC-60%, MPN-40 % Niger Delta (Continental Shelf) 11.03.2011 10.03.2031
OML 68 JVC 123 NNPC-60%, MPN-40 % Niger Delta (Continental Shelf) 11.03.2011 10.03.2031
U P S T R E A M GA Z E M AGA Z I N E

OML 70 JVC 1171 NNPC-60%, MPN-40 % Niger Delta (Continental Shelf) 11.03.2011 10.03.2031
23 MONI PULO LTD. OML 114 SR 298 MONIPULO-60%, Niger Delta (Continental Shelf) 08. 04.2019 17.o4.2039
LUDAL-40%
24 NPDC/NEWCROSS OML 24 JVC 161 NEWCROSS E&P-45%, Niger Delta (Onshore) 01.07.2009 17.10.2039 55% equity held
E&P NPDC-55% by NNPC was
transferred to NPDC
in 2020
25 NEWCROSS OML 152 PSC 990 NEWCROSS -100% Niger Delta (Onshore) 14.03.2017 13.03.2037
PETROLEUM LTD.
43
 S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL LOCATION/ DATE OF DATE OF LEASE COMMENTS
44

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION TERRAIN GRANT EXPIRATION

26 NIGERIA AGIP OML 134 PSC 1,131 ENI-85%, OANDO-15% "Niger Delta 31.05.2006 30.05.2026
U P S T R E A M GA Z E M AGA Z I N E

EXPLORATION (NAE) (Deep Offshore)"

OML 125 PSC 1,219 ENI-85%, OANDO-15% "Niger Delta 02.01.2003 01.01.2023
(Deep Offshore)"
27 NNPC/NIGERIA AGIP OML 60 JVC 358 NNPC-60%, NAOC-20%, Niger Delta (Onshore) 14.06.1997 13.06.2027
OIL CO. LTD. OANDO-20%
OML 61 JVC 1,499 NNPC-60%, NAOC-20%, Niger Delta (Onshore) 14.06.1997 13.06.2027
OANDO-20%
OML 62 JVC 1157 NNPC-60%, NAOC-20%, Niger Delta (Onshore) 14.06.1997 13.06.2027
OANDO-20%
OML 63 JVC 2231 NNPC-60%, NAOC-20%, Niger Delta (Onshore) 14.06.1997 13.06.2027
OANDO-20%
28 NNPC/AGIP ENERGY OML 116 SC 360 ENI-100% Niger Delta (Continental Shelf) 06.08.1979 05.08.2019
AND NATURAL
RESOURCES (AENR)
29 KAZTEC ENGINEERING OML 126 PSC 722 KAZTEC/SALVIC -70%, Niger Delta (Continental Shelf) 23.3.2021 22.03.2041 "1. Blocks were
LTD./SALVIC NNPC -30% revoked from Addax
PETROLEUM in March, 2021.
CONSORTIUM 2. Award is yet to be
concluded"
OML 137 SR 849 KAZTEC/SALVIC -70%, Niger Delta (Continental Shelf) 23.3.2021 22.03.2041
NNPC -30%
OML 123 PSC 401 KAZTEC/SALVIC -70%, Niger Delta (Continental Shelf) 23.3.2021 22.03.2041
NNPC -30%
OML 124 PSC 300 KAZTEC/SALVIC -70%, Niger Delta (Onshore) 23.3.2021 22.03.2041
NNPC -30%
30 NPDC/ELCREST E&P OML 40 JVC 443 NPDC-55%, ELCREST-45% Niger Delta (Onshore) 22.10.2018 21.10.2038
NIG. LTD.
31 NPDC/NECONDE OML 42 JVC 743 NECONDE-45%, NPDC- Niger Delta (Onshore) 22.10.2018 21.10.2038
ENERGY LTD. 55%
32 NNPC/FIRST OML 26 JVC 481 FIRST Niger Delta (Onshore) 01.07.1989 18.06.2039
HYDROCARBON NIG. HYDROCARBON-45%,
LTD NPDC-55%
33 NNPC/ND WESTERN OML 34 JVC 953 NPDC-55%, ND Niger Delta (Onshore) 28.02.2019 27.02.2039
LTD. WESTERN-45%
VOL.3 2023

34 NIGERIA PET. DEV. CO. OML 119 SR 724 NPDC-100% Niger Delta (Continental Shelf) 31.10.2000 30.10.2020
(NPDC)

S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL LOCATION/ DATE OF DATE OF LEASE COMMENTS
VOL.3 2023

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION TERRAIN GRANT EXPIRATION

OML 111 SR 461 NPDC-100% Niger Delta (Onshore) 04.03.2019 03.03.2039
OML 98 SR 523 NPDC -100% Niger Delta (Onshore) 1.08.2019 31.07.2039 Awarded to NPDC
following revocation
from Pan Ocean on
01.08.2019
OML 64 SR 278 NPDC-100% Niger Delta (Onshore) 04.03.2019 03.03.2039
OML 65 SR 1,012 NPDC-100% Niger Delta (Onshore) 04.03.2019 03.03.2039
OML 66 SR 206 NPDC-100% Niger Delta (Onshore) 04.03.2019 03.03.2039
OML 13 SR 1,987 NPDC-100% Niger Delta (Onshore) 20.12.2016 19.12.36
OML 11 SR 3,095 NPDC -100% Niger Delta (Onshore) 01.07.2019 31.06.2039 "1. Previously held
by SPDC
2. Block is currently
under litigation"
35 NNPC/SHORELINE OML 30 JVC 1079 NPDC-55%, SHORELINE Niger Delta (Onshore) 01.07.89 03.03.2039 "Producing
NATURAL RESOURCES NAT RESOURCES-45% Renewed on
LTD. -04.03.2019"
36 OIL AND GAS NIG. LTD. OML 140 SR 1,220 PSA Partner: OIL & GAS "Niger Delta 18.07.07 17.07.27
-10%, STAR ULTRA DEEP (Deep Offshore)"
-22%, LUKOIL -18%; PSC
Partner: NNPC 50%
37 ORIENTAL ENERGY OML 115 SR 230 ORIENTAL-100% Niger Delta (Continental Shelf) 10.05.2019 09.05.2039
RESOURCES LTD
38 ORIENT PETROLEUM OML 155 SR 1,195 ORIENT PETROLEUM-100% Anambra Basin (Onshore) 18.01.2021 17.01.2041
REFINERY LTD
39 PAN OCEAN /ANIOMA OML 147 PSC 271 PANOCEAN -100% Niger Delta (Onshore) 23.10.2014 22.10.2034
40 PEAK PETROLEUM OML 122 SR 1,295 PEAK-(95 OIL/88 Niger Delta (Continental Shelf) 17.05.2001 16.05.2021
INDUSTRIES NIG. LTD GAS),OANDO (5 OIL/12
GAS)
U P S T R E A M GA Z E M AGA Z I N E

41 NPDC/SEPLAT OML 4 JVC 267 SEPLAT-45%,NPDC-55% Niger Delta (Onshore) 22.10.2018 21.10.2038
OML 38 JVC 2,151 SEPLAT-45%,NPDC-55% Niger Delta (Onshore) 22.10.2018 21.10.2038
OML 41 JVC 291 SEPLAT-45%,NPDC-55% Niger Delta (Onshore) 22.10.2018 21.10.2038
OML 53 JVC 1333 SEPLAT-45%,NPDC-55% Niger Delta (Onshore) 14.06.1997 13.06.2027
42 NNPC/TRANS NIGER OML 17 JVC 1,301 NNPC-55%, TNOG-45% Niger Delta (Onshore) 18.10.2018 17.10.2038 "1. TNOG Acquired
OIL & GAS LTD (TNOG) 45% equity from
SPDC/TEPNG/NAOC
in 2020
2. Producing "
45
 S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL LOCATION/ DATE OF DATE OF LEASE COMMENTS
46

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION TERRAIN GRANT EXPIRATION

43 NNPC/SHELL OML 20 JVC 405 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
U P S T R E A M GA Z E M AGA Z I N E

PETROLEUM 30%,ELF-10%, AGIP--5%

DEVELOPMENT
COMPANY (SPDC)
OML 21 JVC 355 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 22 JVC 709 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 23 JVC 442 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 25 JVC 400 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 27 JVC 165 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 28 JVC 936 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 31 JVC 562 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 32 JVC 566 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 33 JVC 228 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 35 JVC 1,144 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 36 JVC 338 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 43 JVC 748 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 45 JVC 77 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 46 JVC 1016 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 74 JVC 1,250 NNPC-55%, SPDC- Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
30%,ELF-10%, AGIP--5%
VOL.3 2023

OML 77 JVC 962 NNPC-55%, SPDC- Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
30%,ELF-10%, AGIP--5%

S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL LOCATION/ DATE OF DATE OF LEASE COMMENTS
VOL.3 2023

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION TERRAIN GRANT EXPIRATION

OML 79 JVC 971 NNPC-55%, SPDC- Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
30%,ELF-10%, AGIP--5%
44 SHELL NIG.EXP & OML 118 PSC 1,167 SNEPCO-55%, "Niger Delta 15.01.2021 14.01.2041 Renewed for another
PROD. CO. LTD EXXON-20%,ENI- (Deep Offshore)" 20 year tenure
12.5%,ELF-12.5% effective 15.01.2021
OML 135 PSC 926 SNEPCO-55%, "Niger Delta 03.07.2006 02.07.2026
EXXON-20%,ENI- (Deep Offshore)"
12.5%,ELF-12.5%

45 SOUTH ATLANTIC PET. OML 130 SR 644 NNPC - 50% (CNOOC-90%, "Niger Delta 25.04.2005 24.04.2025
LTD. SOUTH ATL.-10%), PRIME (Deep Offshore)"
130 -16%, TOTAL-24%
46 STATOIL (NIGERIA) OML 128 PSC 1,199 STATOIL-53.85%, CNL- "Niger Delta 28.12.2004 27.12.2024 Statoil is presently
LIMITED 46.15% (Deep Offshore)" known as Equinor
OML 129 PSC 1,023 STATOIL-53.85%, CNL- "Niger Delta 28.12.2004 27.12.2024 Statoil is presently
46.15% (Deep Offshore)" known as Equinor
47 SUMMIT OIL OML 142 SR 1295 SUMMIT-30%, Anambra Basin (Onshore) 12.06.2009 11.06.2029
INTERNATIONAL SUNTERA-70%
48 SUNLINK PETROLEUM OML 144 SR 96 SUNLINK-60%, Niger Delta (Continental Shelf) 02.05.2013 01.05.2033
LIMITED SHELL-40%

49 STERLING OIL E&P OML 146 PSC 30 STERLING GLOBAL 51%, Niger Delta (Onshore) 25.10.2014 24.10.2034
PRODUCTION CO. LTD DOMON 24%, KUNOCH
(SEEPCO) 15%, PRIMETIME 10%
OML 143 PSC 369 STERLING GLOBAL 80%, Niger Delta (Onshore) 29.12.2010 28.12.2030
ALLENE 20%
OML 157 PSC 104 STERLING -100% Niger Delta (Onshore) 05.07.2021 04.07.2041 converted from
OPL 2004, effective
U P S T R E A M GA Z E M AGA Z I N E

05.07.2021
50 YINKA FOLAWIYO PET. OML 113 SR 836 YINKA PET -69, NEW AGE "Benin Basin 23.07.2018 22.07.2038
CO. LTD -12.831, EER-9%, PAN- (Continental Shelf)"
6.502%, ADM ENERGY
-2.6670%
47
48
9
8
7
6
5
4
3
2
1

26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
S/N

Pillar Oil Limited

COMPANY NAME

Frontier Oil Limited

Petralon 54 Limited
Network E&P Limited
Chorus Energy Limited

All Grace Energy Limited

Universal Energy Limited

Morris Petroleum Limited

Brittania U-Nigeri Limited

Energia Limited (Operator)

Suffolk Petroleum Limited

U P S T R E A M GA Z E M AGA Z I N E
Platform Petroleum Limited

Suntrust Oil Company Limited

Millenium Oil and Gas Limited

Waltersmith Petroman Limited

Midwestern Oil and Gas Limited
Oriental Energy Resources Limited

Ashgrove Exploration & Peoduction

Tenoil Petroleum & Energy Services
Green Energy International Limited
Excel Exploration & Producton Limited
Niger Delta Petroleum Resources Limited

Waltersmith Petroman Limited (Operator)

Halkin Exploration and Production Limited

Prime Exploration & Production (Operator)

Oando Production and Development Limited

Ata

Ofa
Oza

Assa
Uquo

Atala
Ebok

Ajapa

Ubima
Ibigwe
Okwok
Ogbele

Eremor
Qua Ibo
Omerelu

Otakikpo
Umusadege
Stubb Creek
Asaramatoru

Dawes Island
FIELD NAME

Umusati/Igbuku

Amoji /Matsogo / Igbolo

Egbaoma (Ex Asuokpu/Umutu )

Ebendo/Obodeti (Ex Obodugwa /Obodeti)

OML 30
OML 21
OML 46
OML 68
OML 17
OML 11
OML 46
OML 13
OML 13
OML 90
OML 11
OML 38
OML 67
OML 11
OML 53
BLOCK
STATUS OF MARGINAL FIELDS

OML 152
OML 152
OML 152
OML 152

OPL 2006
OPL 2004
OPL 2006

OMLs 13 / 14
REMARKS

OML 14 is now OPL 276

Used to be in former OML 56

Used to be in former OML 56
Used to be in former OML 16
Used to be in former OML 56
Used to be in former OML 56

Award is yet to be concluded

Award is yet to be concluded
Award is yet to be concluded
Award is yet to be concluded

VOL.3 2023
STATUS OF OIL MINING LEASES (OMLs)

VOL.3 2023
S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL DATE OF DATE OF LEASE COMMENTS
OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION LOCATION/TERRAIN GRANT EXPIRATION
1 NNPC/AITEO EASTERN OML 29 JVC 931 AITEO-45%, NNPC-55% Niger Delta (Onshore) 17.10.2018 16.10.2038
E&P CO. LTD (AITEO)
2 AMNI INTERNATIONAL OML 112 SR 438 AMNI-60%, ELF-40% Niger Delta (Cont. Shelf) 17.09.2017 16.09.2037
PETROLEUM LTD OML 117 SR 51 AMNI-60%, Total E&P-40% Niger Delta (Onshore) 17.09.2017 16.09.2037
3 NNPC/AMNI INT'L OML 52 JVC 247 AMNI-40%, NNPC-60% Niger Delta (Onshore) 14.06.1997 13.06.2027
PETR. DEV. CO. LTD
OML 52 (AMNI OML 52)
4 AMALGAMATED OIL CO. OML 156 SR 536 AMALGAMATED -100% Niger Delta (Onshore) 25.03.2019 24.03.2039
NIG..
5 ATLAS PETROLEUM OML 109 SR 772 ATLAS-70%,SUMMIT Niger Delta (Cont. Shelf) 25.04.2017 24.04.2037
NIG. LTD OIL-30%
6 NNPC/BELEMAOIL OML 55 JVC 849 BELEMA-40%, NNPC-60% Niger Delta (Onshore) 14.06.1997 13.06.2027
PRODUCING LTD.
7 NNPC/CHEVRON NIG. OML 49 JVC 1472 NNPC-60%, CNL-40% Niger Delta (Onshore) 14.06.1997 13.06.2027
LTD. OML 51 JVC 145 NNPC-60%, CNL-40% Niger Delta (Onshore) 14.06.1997 13.06.2027
OML 89 JVC 304 NNPC-60%, CNL-40% Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
OML 91 JVC 156 NNPC-60%, CNL-40% Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
8 NNPC/CHEVRON NIG. OML 86 JVC 540 NNPC-60%, CNL-40% Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
LTD. OML 88 JVC 743 NNPC-60%, CNL-40% Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
OML 90 JVC 547 NNPC-60%, CNL-40% Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
OML 95 JVC 1065 NNPC-60%, CNL-40% Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
9 CHEVRON NIG. LTD. OML 132 PSC 803 CHEVRON -55% Lukoil -45% Niger Delta (Deep Offshore) 20.12.2005 19.12.2025
10 OANDO PLC OML 131 PSC 1,204 OANDO-52.5%,EXXON Niger Delta (Deep Offshore) 24.04.2005 23.04.2025
MOBIL-47.5%
11 CONOIL PRODUCING OML 103 SR 914 CONOIL -100% Niger Delta (Onshore) 20.12.2016 19.12.2036
LTD OML 136 SR 1,294 CONOIL-60%,TOTAL-40% Niger Delta (Continental Shelf) 27.07.2006 26.07. 2026
OML 153 PSC 531 CONOIL -100% Niger Delta (Continental Shelf) 15.02.2018 14.02.2038
U P S T R E A M GA Z E M AGA Z I N E

12 CONTINENTAL OIL & OML 59 SR 835 CONOIL -100% Niger Delta Onshore 06.06.1998 05.06.2028
GAS COMPANY LTD.
(CONOG)
49
 S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL DATE OF DATE OF LEASE COMMENTS
50

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION LOCATION/TERRAIN GRANT EXPIRATION

OML 150 PSC 428 CONOIL -100% Niger Delta Onshore 10.03.2016 09.03.2036
U P S T R E A M GA Z E M AGA Z I N E

13 DAMAS OML 110 SR 966 DAMAS -100% Niger Delta (Continental Shelf) 5.02.2021 04.02.2041 "1. Lease was revoked
PETROCHEMICALS & in 2019 from Cavendish
REFINERY Pet. Nig.
2. Award is yet to be
concluded"
14 DUBRI OIL CO. (NIG.) OML 96 SR 226 DUBRI - 100% Niger Delta (Onshore) 02.05.2013 01.05.2033
LIMITED
15 TOTAL EXP & PROD. OML 138 PSC 906 ESSO-30%,CNL-30%, "Niger Delta 17.05.2007 16.05.2027
NIG. LTD. TOTALENERGIES- (Deep Offshore)"
20%NEXEN-20%
OML 139 PSC 904 TOTAL-100% "Niger Delta 17.05.2007 16.05.2027
(Deep Offshore)"
16 NNPC/TOTAL EXP & OML 99 JVC 342.8927 NNPC-60%, TOTAL-40% Niger Delta (Continental Shelf) 02.05.2013 01.05.2033
PROD.NIG. LTD. OML 100 JVC 285 NNPC-60%, TOTAL-40% Niger Delta (Continental Shelf) 02.05.2013 01.05.2033
OML 102 JVC 755 NNPC-60%, TOTAL-40% Niger Delta (Continental Shelf) 02.05.2013 01.05.2033
OML 58 JVC 518 NNPC-60%, TOTAL-40% Niger Delta (Onshore) 14.06.2007 13.06.2027
17 EMERALD ENERGY OML 141 SR 1295 EMERALD-53.9%, AMNI Niger Delta (Onshore) 08.11.2007 07.08.2027
RES. LTD INTNL-44.1%, SUPERNOVA
ENERGY(BLUEWATER
GROUP)-2%
18 ENAGEED RESOURCES OML 148 PSC 870 ENAGEED -100% Niger Delta (Onshore) 15.05.2015 14.05.2035
LTD.
19 NNPC/EROTON E&P CO. OML 18 JVC 1,035 "NNPC-55%, EROTON -27%, Niger Delta (Onshore) 22.10.2018 21.10.2038
(EROTON) SAHARA FIELDS -16.2 ,
BILTON -1.8 %"
20 ESSO E & P. LTD OML 133 PSC 1,102 EXXON - 56.25%, "Niger Delta 08.02.2006 07.02.2026
SNEPCO-43.75% (Deep Offshore)"
OML 145 PSC 1293 ESSO 21.0526%, SVENSKA "Niger Delta 30.05.2014 29.05.2034
-21.0526, OANDO (Deep Offshore)"
-21.0526%, CHEVRON
-21.0526%, NPDC
-15.7896%
OML 154 PSC 466 TEPNG -18%, ESSO -27%, "Niger Delta 28.06.2018 27.06.2038
CHEVRON -27%, NEXEN (Deep Offshore)"
VOL.3 2023

-18%, NPDC 10%

21 NNPC/FIRST E&P OML 83 JVC 125 FIRST E&P/DANGOTE-45%, Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
NNPC-55%

S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL DATE OF DATE OF LEASE COMMENTS
VOL.3 2023

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION LOCATION/TERRAIN GRANT EXPIRATION

OML 85 JVC 521 FIRST E&P/DANGOTE-45%, Niger Delta (Continental Shelf) 18.08.2014 17.08.2034
NNPC-55%
22 NNPC/WEST AFRICAN OML 71 JVC 116 WAEP/DANGOTE-45%, Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
E&P CO. LTD (WAEP) NNPC-55%
OML 72 JVC 1,129 WAEP/DANGOTE-45%, Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
NNPC-55%
23 GEC PETROLEUM OML 149 PSC 409 NAOC – 48%, GLOBAL Niger Delta (Onshore) 05.02.2015 04.02.2035
DEVELOPMENT ENERGY -42%, BLJ ENERGY
COMPANY LTD (GLOBAL Ltd – 10%
ENERGY) OML 151 PSC 171 GPDC 51%, NAE 49% Niger Delta (Continental Shelf) 10.03.2016 09.03.2036
24 FAMFA/STAR DEEP OML 127 SR 641 NNPC-50%, CNL- Niger Delta (Deep Offshore) 25.11.2004 24.11.2024
WATER PETROLEUM 32%,FAMFA-10%,
LIMITED PETROBRAS-8%
25 MOBIL PRODUCING OML 104 JVC 294 NNPC-60%, MPN-40 % Niger Delta (Continental Shelf) 10.01.2019 09.01.2039
NIG. UNLIMITED OML 67 JVC 1009 NNPC-60%, MPN-40 % Niger Delta (Continental Shelf) 11.03.2011 10.03.2031
OML 68 JVC 123 NNPC-60%, MPN-40 % Niger Delta (Continental Shelf) 11.03.2011 10.03.2031
OML 70 JVC 1171 NNPC-60%, MPN-40 % Niger Delta (Continental Shelf) 11.03.2011 10.03.2031
26 MONI PULO LTD. OML 114 SR 298 MONIPULO-60%, Niger Delta (Continental Shelf) 08. 04.2019 17.o4.2039
LUDAL-40%
27 NPDC/NEWCROSS OML 24 JVC 161 NEWCROSS E&P-45%, Niger Delta (Onshore) 01.07.2009 17.10.2039 55% equity held by NNPC
E&P NPDC-55% was transferred to NPDC
in 2020
28 NEWCROSS OML 152 PSC 990 NEWCROSS -100% Niger Delta (Onshore) 14.03.2017 13.03.2037
PETROLEUM LTD.
29 NIGERIA AGIP OML 134 PSC 1,131 ENI-85%, OANDO-15% "Niger Delta 31.05.2006 30.05.2026
EXPLORATION (NAE) (Deep Offshore)"
OML 125 PSC 1,219 ENI-85%, OANDO-15% "Niger Delta 02.01.2003 01.01.2023
U P S T R E A M GA Z E M AGA Z I N E

(Deep Offshore)"
30 NNPC/NIGERIA AGIP OML 60 JVC 358 NNPC-60%, NAOC-20%, Niger Delta (Onshore) 14.06.1997 13.06.2027
OIL CO. LTD. OANDO-20%
OML 61 JVC 1,499 NNPC-60%, NAOC-20%, Niger Delta (Onshore) 14.06.1997 13.06.2027
OANDO-20%
OML 62 JVC 1157 NNPC-60%, NAOC-20%, Niger Delta (Onshore) 14.06.1997 13.06.2027
OANDO-20%
OML 63 JVC 2231 NNPC-60%, NAOC-20%, Niger Delta (Onshore) 14.06.1997 13.06.2027
OANDO-20%
51
 S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL DATE OF DATE OF LEASE COMMENTS
52

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION LOCATION/TERRAIN GRANT EXPIRATION

31 NNPC/AGIP ENERGY OML 116 SC 360 ENI-100% Niger Delta (Continental Shelf) 06.08.1979 05.08.2019
U P S T R E A M GA Z E M AGA Z I N E

AND NATURAL
RESOURCES (AENR)
32 KAZTEC ENGINEERING OML 126 PSC 722 KAZTEC/SALVIC -70%, NNPC Niger Delta (Continental Shelf) 23.3.2021 22.03.2041 "1. Blocks were revoked
LTD./SALVIC -30% from Addax in March,
PETROLEUM 2021.
CONSORTIUM 2. Award is yet to be
concluded"
OML 137 SR 849 KAZTEC/SALVIC -70%, NNPC Niger Delta (Continental Shelf) 23.3.2021 22.03.2041
-30%
OML 123 PSC 401 KAZTEC/SALVIC -70%, NNPC Niger Delta (Continental Shelf) 23.3.2021 22.03.2041
-30%
OML 124 PSC 300 KAZTEC/SALVIC -70%, NNPC Niger Delta (Onshore) 23.3.2021 22.03.2041
-30%
32 NPDC/ELCREST E&P OML 40 JVC 443 NPDC-55%, ELCREST-45% Niger Delta (Onshore) 22.10.2018 21.10.2038
NIG. LTD.
34 NPDC/NECONDE OML 42 JVC 743 NECONDE-45%, NPDC-55% Niger Delta (Onshore) 22.10.2018 21.10.2038
ENERGY LTD.
35 NNPC/FIRST OML 26 JVC 481 FIRST HYDROCARBON-45%, Niger Delta (Onshore) 01.07.1989 18.06.2039
HYDROCARBON NIG. NPDC-55%
LTD
36 NNPC/ND WESTERN OML 34 JVC 953 NPDC-55%, ND Niger Delta (Onshore) 28.02.2019 27.02.2039
LTD. WESTERN-45%
37 NIGERIA PET. DEV. CO. OML 119 SR 724 NPDC-100% Niger Delta (Continental Shelf) 31.10.2000 30.10.2020
(NPDC) OML 111 SR 461 NPDC-100% Niger Delta (Onshore) 04.03.2019 03.03.2039
OML 98 SR 523 NPDC -100% Niger Delta (Onshore) 1.08.2019 31.07.2039 Awarded to NPDC
following revocation from
Pan Ocean on 01.08.2019
OML 64 SR 278 NPDC-100% Niger Delta (Onshore) 04.03.2019 03.03.2039
OML 65 SR 1,012 NPDC-100% Niger Delta (Onshore) 04.03.2019 03.03.2039

OML 66 SR 206 NPDC-100% Niger Delta (Onshore) 04.03.2019 03.03.2039

OML 13 SR 1,987 NPDC-100% Niger Delta (Onshore) 20.12.2016 19.12.36
OML 11 SR 3,095 NPDC -100% Niger Delta (Onshore) 01.07.2019 31.06.2039 "1. Previously held by
VOL.3 2023

SPDC
2. Block is currently under
litigation"
VOL.3 2023

S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL DATE OF DATE OF LEASE COMMENTS
OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION LOCATION/TERRAIN GRANT EXPIRATION
38 NNPC/SHORELINE OML 30 JVC 1079 NPDC-55%, SHORELINE NAT Niger Delta (Onshore) 01.07.89 03.03.2039 "Producing
NATURAL RESOURCES RESOURCES-45% Renewed on -04.03.2019"
LTD.
39 OIL AND GAS NIG. LTD. OML 140 SR 1,220 PSA Partner: OIL & GAS "Niger Delta 18.07.07 17.07.27
-10%, STAR ULTRA DEEP (Deep Offshore)"
-22%, LUKOIL -18%; PSC
Partner: NNPC 50%
40 ORIENTAL ENERGY OML 115 SR 230 ORIENTAL-100% Niger Delta (Continental Shelf) 10.05.2019 09.05.2039
RESOURCES LTD
41 ORIENT PETROLEUM OML 155 SR 1,195 ORIENT PETROLEUM-100% Anambra Basin (Onshore) 18.01.2021 17.01.2041
REFINERY LTD
42 PAN OCEAN /ANIOMA OML 147 PSC 271 PANOCEAN -100% Niger Delta (Onshore) 23.10.2014 22.10.2034
43 PEAK PETROLEUM OML 122 SR 1,295 PEAK-(95 OIL/88 Niger Delta (Continental Shelf) 17.05.2001 16.05.2021
INDUSTRIES NIG. LTD GAS),OANDO (5 OIL/12 GAS)
44 NPDC/SEPLAT OML 4 JVC 267 SEPLAT-45%,NPDC-55% Niger Delta (Onshore) 22.10.2018 21.10.2038
OML 38 JVC 2,151 SEPLAT-45%,NPDC-55% Niger Delta (Onshore) 22.10.2018 21.10.2038

OML 41 JVC 291 SEPLAT-45%,NPDC-55% Niger Delta (Onshore) 22.10.2018 21.10.2038

OML 53 JVC 1333 SEPLAT-45%,NPDC-55% Niger Delta (Onshore) 14.06.1997 13.06.2027
45 NNPC/TRANS NIGER OML 17 JVC 1,301 NNPC-55%, TNOG-45% Niger Delta (Onshore) 18.10.2018 17.10.2038 "1. TNOG Acquired 45%
OIL & GAS LTD (TNOG) equity from SPDC/TEPNG/
NAOC in 2020
2. Producing "
46 NNPC/SHELL OML 20 JVC 405 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
PETROLEUM 30%,ELF-10%, AGIP--5%
DEVELOPMENT OML 21 JVC 355 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
COMPANY (SPDC) 30%,ELF-10%, AGIP--5%
OML 22 JVC 709 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
U P S T R E A M GA Z E M AGA Z I N E

30%,ELF-10%, AGIP--5%
OML 23 JVC 442 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 25 JVC 400 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 27 JVC 165 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 28 JVC 936 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
53
 S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL DATE OF DATE OF LEASE COMMENTS
54

OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION LOCATION/TERRAIN GRANT EXPIRATION

OML 31 JVC 562 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
U P S T R E A M GA Z E M AGA Z I N E

30%,ELF-10%, AGIP--5%
OML 32 JVC 566 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 33 JVC 228 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 35 JVC 1,144 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 36 JVC 338 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 43 JVC 748 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 45 JVC 77 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 46 JVC 1016 NNPC-55%, SPDC- Niger Delta (Onshore) 18.10.2018 17.10.2038
30%,ELF-10%, AGIP--5%
OML 74 JVC 1,250 NNPC-55%, SPDC- Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
30%,ELF-10%, AGIP--5%
OML 77 JVC 962 NNPC-55%, SPDC- Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
30%,ELF-10%, AGIP--5%
OML 79 JVC 971 NNPC-55%, SPDC- Niger Delta (Continental Shelf) 18.12.2014 17.12.2034
30%,ELF-10%, AGIP--5%
47 SHELL NIG.EXP & OML 118 PSC 1,167 SNEPCO-55%, EXXON- "Niger Delta 15.01.2021 14.01.2041 Renewed for another
PROD. CO. LTD 20%,ENI-12.5%,ELF-12.5% (Deep Offshore)" 20 year tenure effective
15.01.2021
OML 135 PSC 926 SNEPCO-55%, EXXON- "Niger Delta 03.07.2006 02.07.2026
20%,ENI-12.5%,ELF-12.5% (Deep Offshore)"
48 SOUTH ATLANTIC PET. OML 130 SR 644 NNPC - 50% (CNOOC-90%, "Niger Delta 25.04.2005 24.04.2025
LTD. SOUTH ATL.-10%), PRIME (Deep Offshore)"
130 -16%, TOTAL-24%
49 STATOIL (NIGERIA) OML 128 PSC 1,199 STATOIL-53.85%, CNL- "Niger Delta 28.12.2004 27.12.2024 Statoil is presently known
LIMITED 46.15% (Deep Offshore)" as Equinor
OML 129 PSC 1,023 STATOIL-53.85%, CNL- "Niger Delta 28.12.2004 27.12.2024 Statoil is presently known
VOL.3 2023

46.15% (Deep Offshore)" as Equinor

50 SUMMIT OIL OML 142 SR 1295 SUMMIT-30%, Anambra Basin (Onshore) 12.06.2009 11.06.2029
INTERNATIONAL SUNTERA-70%
VOL.3 2023

S/N NAME CONCESSION CONTRACT AREA EQUITY GEOLOGICAL DATE OF DATE OF LEASE COMMENTS
OF COMPANY HELD TYPE (SQ.KM) DISTRIBUTION LOCATION/TERRAIN GRANT EXPIRATION
51 SUNLINK PETROLEUM OML 144 SR 96 SUNLINK-60%, SHELL-40% Niger Delta (Continental Shelf) 02.05.2013 01.05.2033
LIMITED
52 STERLING OIL E&P OML 146 PSC 30 STERLING GLOBAL 51%, Niger Delta (Onshore) 25.10.2014 24.10.2034
PRODUCTION CO. LTD DOMON 24%, KUNOCH 15%,
(SEEPCO) PRIMETIME 10%
OML 143 PSC 369 STERLING GLOBAL 80%, Niger Delta (Onshore) 29.12.2010 28.12.2030
ALLENE 20%
OML 157 PSC 104 STERLING -100% Niger Delta (Onshore) 05.07.2021 04.07.2041 converted from OPL 2004,
effective 05.07.2021
53 YINKA FOLAWIYO PET. OML 113 SR 836 YINKA PET -69, NEW "Benin Basin 23.07.2018 22.07.2038
CO. LTD AGE -12.831, EER-9%, (Continental Shelf)"
PAN-6.502%, ADM ENERGY
-2.6670%
U P S T R E A M GA Z E M AGA Z I N E
55

NUPRC DETERMINED
TO HELP INCREASE
NIGERIA’S REVENUE
BASE
- Paul Agada -
I
n its recent overview of the oil and gas sector in the
decade between 2011 to 2020, the Nigeria Extractive
Industries Transparency Initiative (NEITI) revealed that
the sector had gained $394 billion in revenue. The
report further disclosed that revenue of $20.43 billion
realised in 2020 represented the second-lowest figure in
the 10-year period, only higher than in 2016 when the
sector recorded just $17 billion.
The low 2020 figures were largely unsurprising, as the
low revenue can be attributed to the global drop in oil
prices due to the COVID-19 pandemic. However, since
global activities have begun to pick up post-Covid, the
sector has seen a significant rise in revenue.
Oil revenue amounted to N799 billion in the first quarter
of 2022 according to the Central Bank of Nigeria (CBN),
although the figure indicated a 28.3 per cent decline
from the N1.11 trillion revenue generated in the preceding
quarter. Nigeria's oil sector consequently contributed
5.66% to the country's total real gross domestic product
(GDP) in Q3 2022, according to the National Bureau of
Statistics (NBS).
At a glance, the uptick in revenue generated since
the pandemic even as the sector continues to struggle
with production is indicative of efforts by the Federal
Ministry of Petroleum Resources and Nigerian Upstream
Petroleum Regulatory Commission (NUPRC) to increase
operations and revenue through actionable policies and
strategies.
The NUPRC, for instance, has assumed a position as
the upstream technical and commercial regulator since
President Buhari signed the Petroleum Industry Act into
law in 2021. Since then, the Commission has established
various regulatory laws and policies per the provisions of
the PIA to clean up and guide future operations in the
oil and gas sector. The established regulations have so
far included the Nigeria Upstream Host Communities
Development Regulations, Nigeria Upstream Fees
and Rents Regulations, Nigeria Royalty Regulations,
56 U P S T R E A M GA Z E M AGA Z I N E
Conversion and Renewal Regulations, Domestic Gas
Delivery Obligations Regulations, and Licensing Round
Regulations.
Subsequent regulations reeled out by the NUPRC
in September 2022 include the Acreage Management
(Drilling and Production) Regulations; Upstream
SEVERAL ASPECTS OF THESE
REGULATIONS ARE CRITICAL INDICATORS
OF THE NUPRC’S COMMITMENT TO
BOLSTERING REVENUE GENERATION IN
THE OIL AND GAS SECTOR
VOL.3 2023
Petroleum Environmental Regulations; Upstream
Petroleum Environmental Remediation Fund Regulations;
Upstream Petroleum Safety Regulations; Utilisation
Regulations; Upstream Petroleum Decommissioning and
Abandonment Regulations and; the Frontier Exploration
Fund Regulation.
In February this year, the Commission effectively kicked
off stakeholder consultation on its third round of new reg-
ulations under the Petroleum Industry Act (PIA).
Several aspects of these regulations are critical indica-
tors of the NUPRC’s commitment to bolstering revenue
generation in the oil and gas sector. From all indices, when
fully implemented, the policies will significantly contribute
to the proliferation of Nigeria’s revenue base and begin to
yield evident economic results.
Particularly, Royalty Regulations can help boost
revenue in the oil sector by ensuring that the govern-
ment receives a fair share of the profits generated by oil
companies. Under the current royalty regulation set in
place by the Commission, upstream operators in Nigeria
are required to pay royalties subject to an annual rise of
VOL.3 2023
two per cent. Apart from increasing
government revenue, royalty regu-
lations have numerous benefits for
the sector, including the promotion
of transparency, avoidance of
conflict, sustainable exploitation of
oil resources, investment encourage-
ment and more.
The Nigeria Upstream Fees and
Rents Regulations represent another
policy that will have a similar impact
in driving revenue generation within
the sector. By setting fair upstream
fees and rents, governments can
encourage investment in the oil
sector, as companies will be more
likely to invest in exploration and
production if they can expect to earn
a reasonable return on their invest-
ment. Interestingly, in its Q1 2022
revenue report, CBN disclosed that
revenues from oil and gas royalties,
rent, and gas flare fines brought
in N343 billion, N2 billion, and N19
billion respectively. This signifies that
in the imminent future, the NUPRC’s
regulatory environment will further
inspire revenue returns to Nigeria’s
coffers.
Licensing Round Regulations can
as well boost revenue in the sector by
attracting investment and promoting
competition among oil companies.
Under this regulation, the Nigerian
government will offer exploration
and production rights for a particu-
lar area to oil companies through a
competitive bidding process. This will encourage further
investments in the oil sector, as oil companies may offer
higher upfront payments and higher royalties to win
exploration and production rights.
Furthermore, licensing rounds have the potential to
help the Nigerian government maximize the value of its
oil and gas resources by ensuring that they are awarded
to the companies that can best develop them. This is
necessary to ensure that the resources are developed
efficiently and sustainably.
Several other regulations such as the Conversion
and Renewal Regulations and Upstream Petroleum
Environmental Remediation Fund Regulations are
designed to improve activities in oil regions and will also
have unique impacts on increased revenue generation.
The resolve of the NUPRC to sanitise the oil and gas
sector since its formation in 2021 has been phenomenal.
Now, with the implementation of these new regulatory
policies, the Commission is well-positioned to achieve
its aim of taking the sector back to its glory days for the
benefit of Nigeria's economy
U P S T R E A M GA Z E M AGA Z I N E 57

TOWARDS DEVELOPING ENABLING
FRAMEWORKS FOR A SUSTAINABLE ENERGY
TRANSITION (PART 1): A PAN-AFRICAN
TECHNO-STRATEGIC PERSPECTIVE
- Mutiu K. Amosa, John R. Tonlagha, Abdul-Afeez Balogun, Musa M. Zagi,
Sunday G. Odanlumen, Olatokunbo S. Karimu, Bisola T. Bello -
The Dominant Narrative
From time immemorial – medieval, classical, and
modern eras – political, economic, and social decisions
usually tend to follow the dominant narratives since nar-
ratives create realities. They are embedded with ideas
which influence behaviour and shape cultures and are
later embedded in institutions. Narratives influence what
we see and think about, how we see things, and how we
behave. They create cultural, institutional, and infrastruc-
tural path dependencies.
There are obviously two competing narratives vis-à-vis
global energy transition. One is that
some countries should pioneer the
path to a carbon-neutral energy
future in response to rapidly rising
greenhouse gas emissions and
pursuant climate change. The other
is that the global energy transi-
tion is misguided and could harm
the competitiveness of industries.
Those embracing this view vary in
the extent to which they accept the
58 U P S T R E A M GA Z E M AGA Z I N E
threat of climate change as real and urgent. Thus, some
would argue to abandon the energy transition altogether
and others to slow its pace. This piece examines these
two narratives and attempted to put a balanced view
considering the peculiarities of some regional needs in
technological and Pan-African points of view.
In the last century, the dominant narrative has been that
growth necessitates access to cheaper energy and natural
resources. Cheaper energy has been defined as fossil fuels
and nuclear energy. The industrial revolution spurred a
massive growth in the demand for fossil fuels while also
VOL.3 2023
increasing capabilities to extract fossil fuels and mineral
resources from previously unimaginable depths and
locations. Coal, oil, and gas and later nuclear energy fuelled
the economic growth that brought wealth to Europe and
North America and more recently to China and East Asia.
For many decades, coal miners were organized in labour
unions that defined regional and at times national politics.
Oil and gas companies (Sinopec, Royal Dutch Shell, China
National Petroleum, Saudi Aramco, BP, Total Energies,
Chevron, Exxon Mobil …) continue to be among the
wealthiest companies in the world. Fossil fuel wealth has
also helped to keep a narrative alive that fossil fuel and
nuclear energy is essential for the well-being of modern
societies, that fossil-fuel and nuclear power plants are
essential for maintaining grid stability and preventing
blackouts, and that a rapid transition away from fossil
fuels would wreak havoc on most economic systems.
Challenging the Dominant Narrative
For many decades, proponents of climate change
and sustainability were attempting to create a count-
er-narrative but with little success. This has nevertheless
started to change as more and more countries enact
policies to address climate change. These counter-nar-
ratives recognize that there will be big costs involved
in transitioning away from fossil fuels but are also dis-
cussing the many co-benefits that can be achieved
through a shift in economic growth strategies and the
energy structures behind them. The environmental and
climate counter-narratives are offering stronger visions
of what sustainable development can lead to: a brighter,
renewable, clean-energy future; green and more liveable
urban environments; and biodiversity protection for the
planet and human well-being.
It must be noted that both renewable and nonrenew-
able sources of energy have a role to play in the energy
transition. The nonrenewable sources like coal and oil are
abundant in several countries and therefore are readily
available and offer energy security. Therefore, steady
release of energy by fossil fuel sources is important for
reliability and stability and hence quality which are sus-
tainable energy requirements. The use of highly efficient
conversion technology and carbon capture and seques-
tration can greatly reduce the carbon footprint of fossil
fuel sources. For natural gas, controlling leakages along
the entire supply chain is paramount due to the high
global warming potential of methane which is the main
constituent of natural gas. We cannot however deny the
fact that gas is the natural transition energy towards the
net-zero target, and Africa should strengthen the use
of her natural gas resources to achieve the low carbon
energy transition solution towards the net-zero.
Therefore, several options such as carbon capture and
storage, amongst other alternatives, are critical options
for energy efficiency in various fossil plants. These
strategies, measures and technologies could be used to
improve sustainability.
VOL.3 2023
Greenhouse Gases and Global Warming –
The need for a Pan-African Blueprint
Fossil fuels continue to dominate the current energy
systems and have been reported to significantly con-
tribute to the global carbon dioxide (CO2) and other
greenhouse gases emissions to the atmosphere, thus,
making it less efficient (Kabeyi and Olanrewaju, 2022).
Consequently, the undeniable need to confront climate
change is well-established. It is a challenge which is being
faced by all nations. This however entails an approach
which is truly inter-disciplinary in nature, drawing on the
expertise and know-how in science and technology, social
sciences, and politics. This approach will tend towards
prospecting an energy transition through the lens of
delivering energy justice to our society.
The greenhouse gases – such as carbon dioxide and
methane – are largely to blame for impacted changes to
the climate. Some of the sun’s energy is reflected back to
space and then trapped by these gases leading to earth
warming. Increased concentrations of these gases in our
atmosphere leads to global warming and consequently
climate change.
It has been proven that Africa carries the heaviest
burden of the associated climate change effects, despite
contributing less than 5% of the world’s greenhouse gas
emissions. Industrialized countries – namely China, the
US, India, Russia and Japan – are on top the list in green-
house gases emission, especially as regards the emission
of carbon dioxide. Summarily, the G20 countries account
for 80% of greenhouse gas emissions with China alone
emitting nearly 25% of the global emissions, and closely
followed by the US,
Africa appears to be the most vulnerable continent
to the adverse effects of climate change due to its low
adaptive capacity, as a result of financial and technological
limitations, and an over-reliance on rain-fed agricul-
ture. The current case of food insecurity as a result of
drought in East Africa is a case in point (Funk, 2021), as
the human-induced warming in the western Pacific ocean
has been making things worse. The global emissions
have stemmed in the rapid warming of the west Pacific,
resulting in more rain around Indonesia and concerning
but predictable rainfall deficits in arid, food-insecure
eastern Kenya, Somalia, and Ethiopia (Funk, 2021). The
SUMMARILY, THE G20 COUNTRIES
ACCOUNT FOR 80% OF GREENHOUSE GAS
EMISSIONS WITH CHINA ALONE EMITTING
NEARLY 25% OF THE GLOBAL EMISSIONS,
AND CLOSELY FOLLOWED BY THE US
U P S T R E A M GA Z E M AGA Z I N E 59

continent is also witnessing a higher rate of warming
than the global average of 0.15°C per decade between
1951 and 2020. Given the observed global warming, it is
projected that the continent will experience an increase
in hot extremes and more frequent and intense rainfall
extremes.
It must be noted that the Paris Agreement (UN, 2015)
aims to limit global warming to well below 2°C, pref-
erably to 1.5°C, compared to the pre-industrial levels.
Essentially, the agreement brought all countries together
in a common effort to combat climate change and adapt
to its effects. While the agreement provides a framework
for financial and technical support to countries who need
it, it went ahead to oblige developed countries to support
developing countries in their mitigation and adaptation
efforts – because they are largely responsible for the
losses and costs associated with climate change (Kabeyi
and Olanrewaju, 2022).
However, recent reports have shown that out of
the US$100 billion a year promised to be raised by the
developed countries to support climate change adapta-
tion and mitigation in vulnerable countries, the pledge
has fallen short by at around US$20 billion since 2018.
Sadly, there has been no clear plans provided by these
“rich” nations on how this deficit will be met (Osaka, 2021).
With the fact that the concentration of carbon dioxide
is on an upward trend, despite a dip in 2020 as a result
of economic slowdown due to the COVID-19 pandemic,
it is imperative that African countries should continue
to remind developed nations of the need to comple-
ment local adaptation efforts with the global emission
reductions.
African countries have sought to mitigate the effects
of climate change with their respective resources. On the
average, and as at 2019, African countries were already
spending about 5% of their annual GDP to support
adaptation and mitigation initiatives, exceeding their
60 U P S T R E A M GA Z E M AGA Z I N E
SOUTH AFRICA HAS
RECENTLY COMMENCED
THE GEOLOGICAL
MAPPING FOR HER FIRST
CARBON CAPTURE AND
STORAGE (CCS) SITE
contributions to climate change. Most African countries
have explored renewable energy resources that can help
reduce the emission of greenhouse gases through some
research, development, and implementation programs.
There have been numerous carbon sequestration ini-
tiatives, among other environmentally sustainable
investments, running across the continent (Beck et al.,
2013; Yoro et al., 2019; Yoro et al., 2020). Take for instance,
South Africa has recently commenced the geological
mapping for her first carbon capture and storage (CCS)
site, where the vast volumetric quantities of the CO2 will
be injected deep underground as from year 2023.
With all these, the world has to note the fact that
African countries cannot be ignored, or just listened to.
Their needs should be made to shape the agenda. Leaders
of African countries should approach the convention with
a strong, unified voice, presenting their climate change
concerns and needs. It is essential that actions that imme-
diately address the challenges facing the continent be
taken by:
• Making finance more accessible and faster to African
and other developing countries.
• Ensuring that developed nations pledge to boost
non-financial efforts in climate change adapta-
tion, such as education, acceleration of research
and development, as well as technology transfer
of well-functioning technology mechanism, as
stated in the Paris Agreement on the vision of fully
realizing technology development and transfer for
both improving resilience to climate change and
reducing GHG emissions. It establishes a technology
framework to provide overarching guidance to the
well-functioning Technology Mechanism.
• Guaranteeing a re-commitment of climate finance in
line with the revised nationally determined contri-
butions (NDCs).
VOL.3 2023
Rethinking the Insights Towards a Balanced energy supply deficit resulting from the recent Russia –
Energy Transition Ukraine war. The energy transition brings uncertainties
In the recent times, calls for immediate actions on and challenges for all countries, but in particular those
climate and environmental justice, access to energy, and whose economies are heavily dependent on fossil fuel
a fair energy transition are recurrent topics in several extraction and/or imports, in terms of future consumption
outlets. Energy is the most crucial resource for the society trends, global investment flows, technology advance-
and well-being of humankind today. It is utilized in almost ments and energy choices.
all human activities, ranging from the domestic to busi- In the recent times, Jason Kenney, the Premier of Alberta
nesses and vital societal services. has opined that knowing fully well that the vast majority of
With the entry of other sources of energy, such as energy consumed around the world is derived from fossil
solar energy, wind, bioenergy, etc., oil still maintains that fuels, there is no credible way to eliminate her dependence
position as the main source of energy, and the stock of oil on fossil fuel energy anytime in the foreseeable future.
is one of the factors that evaluate the economies of some The leader of the Government of Alberta highlighted that
countries. Therefore, energy transition or transformation based on data from the international Energy Agency, the
essentially implies a systemic shift, and while transitioning global demand for oil is likely to either remain stable or
away from our current global energy system may be of increase over the next 20 years. He further opined that
paramount importance, the speed at which such tran- unless the populace is prepared to stop heating their
sition can take place as regards its timing, or temporal homes in the winter, or ready to stop boarding aircraft to
dynamics is a critical element of consideration, because travel, or prepared to basically shut down the entire indus-
a static approach which ignores the fluid nature of tran- trialized economy and return to living metaphorically, in
sition will be deficient. This is a pertinent approach since mud huts, burning wood as fuels, there is no credible and
energy systems as a subject generating or enhancing sustainable alternative for the complex industrialized
insecurity can be categorized into three risk areas: eco- economies. Besides, we should be reminded that every
nomic-political, technological, and environmental. bit of equipment being used to carry out our mundane
The current global energy markets, institutions, and activities is made in whole or in part from poly products
policies have been established to back the production that are derived from oil. Therefore, the only way out is
and use of fossil fuels, and the fossil-based economy to continue to strive to reduce emissions. Alberta has its
has dominated the production and transformation of Technology Innovation and Emissions Reduction Program
the primary energy into the secondary as well as some that is investing in technology, which is the game changer
other strikingly significant products due to its economic when it comes to emissions reduction. So, it is a utopian
benefits that have been proven over time, the regulations notion that we can suddenly end the use of hydrocar-
have eventually followed similar trend. The strategies that bon-based energy. The challenge is to shrink CO2 output
have been developed over time provide a solid basis for and Alberta is increasingly a world leader in that respect.
fossil-fuel energy, its production, transformation, distribu- The Saudi Aramco is a case example that oil and gas is
tion, and consumption. While such is doable, it is imagined a viable utility for infrastructural development for cleaner
that building such reliable and consistent regulatory energy while complying with the environmental sus-
system for renewable energy sources may be difficult and tainability goals. Aramco is currently working out a $110
quite bumpy due to many factors billion project to develop a gas field
relating to several feed precursors’ in eastern Saudi Arabia. This will turn
availability, technologies adopted, the global market on its head and
scopes, ambitions, societal and envi- make the Kingdom a gas exporter
ronmental impact, amongst others. as it has been evaluated that the
Therefore, it is notable that calls for Jafurah field, which lies southeast of
energy transition from the current BESIDES, WE SHOULD BE Ghawar, the world’s largest conven-
high dependency on cheap forms of tional oil field, holds an estimated
energy, such as coal and fossil fuels,
REMINDED THAT EVERY 200 trillion cubic feet of wet gas, and
translates to a call for changes in BIT OF EQUIPMENT BEING can produce 130,000 barrels per day
the existing policies, unprecedented of ethane and 500,000 barrels per
technological innovations, as well as USED TO CARRY OUT OUR day of gas liquids and condensates
supply and demand patterns for the MUNDANE ACTIVITIES (Shabaneh and Schenckery, 2020).
renewable energy resources. Furthermore, it has been projected
Transitioning to a zero- to low-car- IS MADE IN WHOLE OR that over 22 years, Jafurah could
bon economy at the lowest social and IN PART FROM POLY generate $8.6 billion a year in income
economic cost is one of the major and contribute $20 billion a year to
challenges faced by humanity today PRODUCTS THAT ARE the Kingdom’s GDP. The CEO opined
and made even more so during the DERIVED FROM OIL that though the project comes amid
global health and economic crisis global pressure on transition to
caused by COVID-19 as well as the cleaner sources of energy, following
VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 61
 dioxide emissions, the fossil fuel still accounts for more will lead to a just transition ultimately enabling the oppor-
than 80% of the world’s energy demands. Therefore, it tunity for a deeper transformation that includes variables
would certainly be tempting to conclude that the energy like the redistribution of power and resources, towards
transition to renewables will gradually end today’s geo- a more just and equitable social order (Mohamed, 2019;
politics of fossil fuels. Todd and McCauley, 2021).
The selection criteria for development sustainable
energy transition should consider the environmental,
technical, social, institutional, and economic dimensions of Renewable Energies, R&D and Technological
sustainability. While choosing or selecting energy sources, Innovations for Decarbonization
the choice of conversion technology and cost involved For decades, oil and gas exploration and production, and
play a crucial role in modern economies and societies. service companies are known for striving to operate in
environmentally responsible manner with heavy invest-
ment in R&D, developing new technologies to enable
The Barriers to Overcome and the continuous operations in most stringent environments.
Opportunities at Hand It is however unfortunate that the fossil fuel energy
Africa’s energy transition must recognize the need to consumption has been tagged as one of the topmost
increase energy access and grow generation capacity at sources of environmental pollution, and this has incen-
affordable cost and reliability. Globally, the advancement tivized scientists to attempt to develop renewable energy
of renewable energy remains a continual exercise towards sources. This has caused countries around the world to
major climate change-focused events, he maintained that the end of these petrostates. Further assessments and optimizing the production based on the precursor choices look towards reducing emissions and transit away from
the breakthrough in unconventional gas could not have outlook for energy policy in the MENA region within the and cutting down the costs. It is important that the fossil fuels. However, while renewable energy is one of
come at a better time for the energy transition since the context of the myriad factors impacting policy design and complete transition of a fossil-based energy system to a the most effective ways to do so, it is not always free of
gas is a proven, reliable, and affordable energy source. implementation have been provided by several studies. sustainable energy one is historically unprecedented on environmental impacts.
Plans are underway to utilize the $110 billion Jafurah The studies unveiled that while a global transition to new a large scale. To exploit the full potential of renewables, Researchers have recently highlighted the environmen-
unconventional gas development as a flagship project for energy sources supply may be underway in the MENA African countries must develop and implement policies tal impacts of renewable energy development to help
producing blue hydrogen with the projected exportation countries, the region will continue to be a major oil and gas that can catalyse the growth of the sector. Some of the leaders and industry professionals adopt more sustainable
of about 4 million tons of hydrogen by 2030, underpin- producer, consumer and exporter for many years to come factors currently inhibiting growth include: practices and policies. For instance, it is a known fact that
ning state-owned Saudi Aramco's plans to become a low (Claeys et al., 2018; Dercon, 2014; Griffiths, 2017; Grösche 1. Weak regulatory frameworks which make it difficult renewable energy (solar panels, bioenergy, wind turbines,
carbon producer, on a huge scale. The company recently and Schröder, 2014; Hafner and Tagliapietra, 2020; Luomi, to attract investment. etc.) is increasing globally but often requires more land
said it aims to achieve net-zero Scope 1 and 2 greenhouse 2015; Tagliapietra, 2019; Weatherby et al., 2018). 2. Unclear and unstable policies which increase the risk than fossil fuel production, with infrastructure fragment-
gas emissions across its wholly owned operated assets In China, the renewable energy is currently being of doing business. ing or even eliminating high-quality wildlife habitat. The
by 2050. He further explained that gas emits around promoted, with major plans for further expansion, 3. Weak institutional capacity to manage and proac- intensity and magnitude of environmental impacts from
half of coal emissions in power generation, and that the however, the country is also investing in offshore and tively plan for the future of energy. renewable energy development vary depending on the
Jafurah project will not only aid the Kingdom’s environ- overseas oil exploration. Thus, in China the clean energy 4. Low awareness and education on renewables. technology used, the extent of land conversion, and a few
mental ambitions but will also support its petrochemicals narrative is gaining in strength but the reliance on fossil 5. Low purchasing power and high upfront costs of other factors.
industry (Upstream, 2021). fuels continues to be very strong but with an ecologi- decentralised solutions. Furthermore, renewable energy sources cannot yet
Despite the Middle East and North Africa (MENA) cal policy to serve as a means of effect cushioning. This 6. Import-dependent economies and continuous deval- compete economically with fossil fuel resources. With
region being commonly linked with led to enacting a policy termed as uation of currencies, which means end users may not fossil fuel prices likely to remain moderate over the next
fossil fuels, only in the last years “ecological civilization” – a philoso- benefit from decreasing global costs. quarter century, renewable energy sources will probably
some studies have been made on phy, vision, and compass for a green 7. Policies incentivizing Africans to take lead in the tech- fail to gain market share relative to the fossil fuel in a busi-
the effects of global energy trans- and prosperous future – by the nological and industrial development of the continent ness-as-usual scenario because they are not yet regarded
formation for the region. Recent Chinese President Xi Jinpeng legis- because if we do not believe in Africa, we cannot as commercial renewable energy sources. Since sources of
studies have nevertheless chal- lating that the environment must convince others to come be part of its development. comprehensive data on the use of these noncommercial
lenged the assumption of the end not be sacrificed for temporary fuels are not readily available on a consistent, worldwide
of the petrostates due to the global WHILE CHOOSING OR economic growth. Thus, the eco- Furthermore, the need to move energy transitions onto basis, their use cannot be included in projections of global
energy transition. Those studies SELECTING ENERGY logical “red line” requiring all levels a truly interdisciplinary basis must be addressed, and this energy consumption, and this is a clear indication that
affirmed the global energy transition of government towards ensuring encompasses the societal ambitions of the social scientist, non-fossil-fuel energy sources still face some difficulties
might even throw some petrostates SOURCES, THE CHOICE that industrial development occurs the policy development of the political world, and the in competing with fossil fuels.
an additional lifeline, for examples, OF CONVERSION within the constraints of natural project management of the business sector. This requires Carbon capture, storage, and utilization (CCSU) is widely
those petrostates that have already conditions was established. Over an awareness of the currently varying energy policies in accepted as a promising option that aims at reducing CO2
started to move up the energy value TECHNOLOGY AND time, this has fostered the perception Africa, the history, the constraints, how these policies emissions from industrial point sources (e.g., oil and gas
chain by building up refining capacity COST INVOLVED PLAY that to protect the environment is to are likely to develop over time, and how they might be production and refining, coal-fired power plants, etc.) and
and developing a viable petrochem- preserve productivity and to improve adapted further. Some of the African countries’ energy it also allows for the continual use of fossil fuels for sus-
ical industry, namely, Saudi Arabia, A CRUCIAL ROLE IN the environment is to develop pro- system generate inequalities relating to uneven spatial tainable energy generation with a significant reduction of
Qatar, the United Arab Emirates
or Kuwait. MENA has therefore
MODERN ECONOMIES AND ductivity (Schreurs, 2020).
Form the foregoing, and despite
harms, environmental impacts, and the unequal capacity
to mitigate and adapt. And it is certain that a just transition
CO2 emission. One of the technologies employed in CCSU
is adsorption using CO2-selective adsorbents. However,
affirmed that the global energy SOCIETIES the global concerns over dwindling is likely in Africa if all the variables surrounding the process for adsorption of CO2 to be economically feasible for
transformation does not mean resources, climate change and carbon are effectively optimized. This is a pertinent approach as it CCSU, adsorbents with high adsorption capacities for

62 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 63

 transition, and those outcomes
include not only energy fairness
but also decarbonization, energy
security and affordability. Of these
energy objectives, it would seem

MER & TAR, RESERVOIR AND PRODUCTION

self-evident that decarbonization is
the principal outcome, without which

MONITORING/SURVEILANCE TOOLS FOR

the concept of an energy transition
lacks any meaning. Linking energy

OIL AND GAS INDUSTRY REGULATORS

CO2 should be developed and the mechanism involved
in the adsorption process well understood. The adsorp-
tion of CO2 by most materials is usually affected by pore
diffusion, external film diffusion, or by the combination
of the two which constitute the rate-limiting step during
adsorption processes (Yoro et al., 2020). Research findings
have shown that by applying CO2 capture and storage
techniques, it is possible to continue the use of fossil fuels
and yet maintain a near-zero CO2 emission. Adsorption
of CO2 is a reliable technique that can be used for CO2
capture and adsorbents play a critical role during this
process (Yoro et al., 2019).
Consequently, policymakers must ultimately balance
the objective of a fast decarbonization process against
two other important concerns: cost-effectiveness and
a just transition. Political-economic institutional design
and capacity shape the extent to which just transition
concerns are given weight in the phase-out processes.
Conclusions and Recommendations
In this piece, it has been shown that a sustainable energy
transition system must be driven by the climate change
agenda, technology developments and innovation,
increased efficiency, competitive economies, enhanced
security, development of affordable energy solutions, and
measures and modernization of the energy sector from
traditional systems.
It is revealed that the traditional approach to energy
justice places overly emphasis on processes rather than
outcomes. It is being contended here that energy justice
must be assessed in the context of the outcomes of energy
justice more closely to the global
decarbonization movement would
also have the effect of increasing its
societal profile, understanding, and
prospects for success.
It is highlighted that both
renewable and non-renewable
energy sources will form a firm
foundation for effective policy
formulation and implementation
necessary to drive the energy tran-
sition globally. Further research into
practical details of the technologies
and measures is recommended to
guide the actual implementation of
the transition measures and strate-
gies like decentralized, computerized
and optimized generation, energy
storage, and distribution resources to facilitate a sustain-
able energy future.
Transitions habitually appear not as an exponential line
on a graph, but as a punctuated equilibrium which dips
and rises. Fast transitions have occurred in the past and
can occur again, but they only become apparent when a
particular notion of significance, society, energy resources
and services are carefully adhered to while appreciating
contextual specificities. Future energy studies, forecasts,
and scenarios ought to make these attributes much more
transparent and explicit.
Lastly, energy transition will happen, but will defi-
nitely take some time. Requesting the E&P companies
to increase production while curtailing major invest-
ment in oil field servicing will surely pose some
challenges. Unnecessarily demonizing fossil fuel and
pushing for no new investments will come at a price
people are not ready to pay. This is similar to what the
Britain is currently facing as it is now being forced to
reactivate and run coal-fired power stations in order
to secure energy supplies which is being challenged by
the soaring natural gas prices. Analysts should further
strengthen the enlightenment on Economy, Energy
and Environment being the three interrelated variables
that can coexist with the right energy mix ratio over a
period towards a sustainable energy transition.
HSEC SBU, Nigerian Upstream Petroleum Regulatory Commission, Abuja – FCT, Nigeria
Department of Chemical Engineering, University of Ilorin, Ilorin, Nigeria
- Selema B. Sorerekon -
Introduction
The primary objective of production test is the control of
crude oil withdrawal rates in accordance with technical
and conservation consideration so as to minimize
losses/ waste and eliminate inefficient production
practices to ensure the optimum recovery of the pro-
ducible oil. The regular production data from the field,
the Maximum efficiency (MER) result and the technical
allowable rate (TAR) are analyzed and used to monitor
production for effective reservoir management. The
basic parameters derived from the MER test includes
Choke size, Oil rate, Gas rate, Gas Oil Ratio (GOR), Sand
cut, Water cut, Flowing Tubing Head Pressure (FTHP),
Bottom Hole Pressure (BHP), Draw down (DD) and
Productivity Index (PI) (see Table 1).
Maximum Efficiency Rate (MER) is the maximum sus-
tainable daily oil or gas withdrawal rate from reservoir
which will permit economic development and depletion
of that reservoir without detriment to ultimate recovery.
Maximum Efficiency Rate (MER) test is a statutory test
carried out on all oil producing wells, strings and pools
in the country. It is statutorily required to be carried
out biannually which is a prerequisite in obtaining
technical production allowable from the Nigeria
Upstream petroleum Regulatory commission (NUPRC)
for purposes of reservoir management.
Technical production allowable rate (TAR) is the
maximum daily withdrawal or production allowed from
a string, well or pool.
The performance of producing wells are always
monitored and reviewed using some performance
criteria. Monthly reports on producing wells are sent
to oil and gas regulators (NUPRC) for monitoring and
evaluation.
Bad performers are listed, and appropriate actions
taken on them.
Production above or below allowables are also
checked and advised accordingly.
Reservoir management is aimed at preventing waste
and protecting the subsurface (reservoir) natural
energy in other to preserve a natural resource for future
generations. The MER is hence used to set a ceiling
on production to control the allocation of a production
figure (TAR) for every productive well.
If gas or oil is extracted at a greater rate than the
reservoir maximum efficiency rate, the natural pressure
of the reservoir will decrease which results in less oil that
is ultimately recoverable.
The evaluation of the reservoir parameters, monitor-
ing and review of the outcome from the comparison of
the TAR and the actual production of each well amongst
other performance criteria is what can be referred as
production monitoring and reservoir evaluation /
surveillance.
Maximum Efficiciency Rate Test
Choke steps, Stabilization and duration of the test are
the major areas of consideration when running an MER
test.
• A bean or Choke is basically a 6inch tube with a
known internal diameter which is used to control
flow rate. For newly completed or workover wells,
MER must be carried on five equal incremental
choke steps while 3 choke steps is recommended
for old wells.
• Stabilization is a state that a producing well reaches
when the flow rate and well pressure are apparently
constant or stable for a reasonable period of time
such as few hours or more.
• MER test duration covers both the stabilization
and test period. The stabilization for each choke
flow can take as much as 2 hours or more while the
actual test can take as much 6 hours.
TEST: For accurate flow data, all test equipment must
be checked to be in acceptable condition. Test separa-
tors must be at the right static pressures, no leakages at
header valves, proper measurement of gaslift volumes
for gaslifted well, etc.
The conventional and acceptable MER test config-
uration uses a dedicated test line and a test separator

64 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 65

to ensure that only one string or well is tested at a
given period. The string to be tested is first transferred
from the production header to the test header which is
hooked up to the test separator. The string is tested on
five equal incremental choke sizes with each choke at a
time and all measurement recorded for each choke step.
The test string is first allowed to flow for a period to
achieve stabilization before the commencement of the
actual test. After stabilization, the string is allowed to
flow for another few hours with the first choke and the
corresponding flow rate and other parameters from the
flow chart recorded.
This is repeated for the 2nd, 3rd, 4th and 5th choke
sizes and all their corresponding flow measurement
recorded. Flowline samples are collected at strategic
period during the actual test duration for BSW and API
analysis, sand detection. For each of the choke step
completed, the basic parameters recorded from the
MER test includes, oil rate, gas rate, sand cut, water
cut, flowing tubing head pressure (FTHP), bottom hole
pressure (BHP) (see Table 1).
These parameters are tabulated with other reservoir
derivatives with their corresponding choke sizes for
MER evaluation and reservoir performance.
MER Evaluation/ TAR-Derivation
Mer- Evaluation:
• Plots of tubing head pressure (THP) vs Rates and
Choke size vs Rates are made on the same graph
(see Fig 1)
• The point of intersection of the two plots indicates
the point of stable equilibrium which corresponds
to the MER (see Fig 1)
• The number of chokes for each test sometimes
depends on the productive age of the reservoir or
the reservoir depletion rate.
MER – Evaluation for Gas Lifted Wells
For Gas lifted wells:
• Gas is used to lift the oil to the surface. This means
that gas is what controls the flow whereas for
normal flow, it is the choke that controls flow.
• Varying the gas in equal and incremental ratio is
usually recommended for MER Test.
• Therefore, Varied gas replaces the bean size column
in the above table 1.
• A consistent Choke is only used for sand control
and not the flow
• For dual gas lifted wells, accounting for the injected
gas volume in each string is always a challenge,
however for operational ease, an optimized
modelled gas volumes can be used for the test.
• There are however technical justifications for oil and
gas regulators to ignore the conduct of MER test
for gaslifted wells and possibly use the optimized
gaslift volume for the allocation of ceiling permit
(TAR) for such wells. This will be discussed in details
in subsequent articles on “MER test on Gaslifted
wells”.
TAR – Derivation
Established MER Result is a prerequisite for TAR
allocation
OTHERS Reservoir parameters for TAR computation
includes:
• Perforation distance to GOC or OWC
• Reservoir sand thickness of net oil
• Reservoir depletion rate
Generally, MER can be equal or higher than TAR
depending on the judging reservoir parameters

COMMENT A maximum efficiency rate of 280 bopd is recommended for this well PRODUCTION MONITORING AND SURVEILLANCE

Production Monitoring/Statistics Report: September, 2018

COMPANY: SELEMA SET BS&W 10% SET GOR4000 FIELD: XY

Total Tech. Allowable Total Production Total No. of producing
(BOPD): 16,974 (BOPD): 16189 strings: 18
Reservoir Strings Production Tech. Allow. BS&W (%) GOR Difference Remarks
Rate (BOPD) (BOPD) Figure Percent (%) Producing
F1000X 3L 1417 1157 0.10 472 260 18 Over Producing
F1000X 5L 720 611 25.5 780 109 15 Over Producing+HBSW
Table 1: Parameters derived from MER test of ETEL014T well
F1000X 5S 260 548 48 1000 -288 -111 Under Producing+HBSW
F4000X 9T 1107 1130 20 640 -23 -2 Producing+HBSW
F1000X 17S 1266 1435 39 351 -169 -13 Under Producing+HBSW
F1000X 24T 416 400 55 724 16 4 Producing+HBSW
H7000P 26L 913 1190 60.5 1140 -277 -30 Under Producing+HBSW
E5000X 27S 1315 2140 19.5 590 -825 -63 Under Producing+HBSW
F1000X 30T 234 214 60 1059 20 9 Producing+HBSW
F3000X 35S 736 750 41.3 854 -14 -2 Producing+HBSW
F1000X 36L 1256 1477 58.8 585 -221 -18 Under Producing+HBSW
F1000X 36S 1660 1727 34 616 -67 -4 Producing+HBSW
F1000X 38L 648 1020 53 1030 -372 -57 Under Producing+HBSW
F1000X 38S 1177 1118 47.75 670 59 5 Producing+HBSW
F3000X 39S 1051 1212 31.9 519 -161 -15 Under Producing+HBSW
F1000Q 40T 185 845 0.6 3034 -660 -357 Under Producing
18T 1614 2 742
22L 214 73 2163

Figure 2: Production Monitoring Template

Figure 1: MER Plot for ETEL014T well.

66 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 67

Allowable Versus Production Summary

Production Monitoring/Statistics Report: September, 2018

COMPANY: SELEMA AUGUST, 2018

Field Tech. Allow. (BOPD) Production Rate (BOPD) No. Of Producing Strings
S/No. Total 36,907 36,602 28
1 XY 16,974 16,189 18
2 AB 11,633 12,496 8
3 EF 8,300 7,917 2

Monitoring and Surveillance

Summary of Producing Intervals for September, 2018

COMPANY: SELEMA
PRODUCING + OVER PRODUCING + UNDER PRODUCING +
S/N Producing Producing + Producing Producing Over Over Over Over Under Under Under Under
HBSW + HGOR + HBSW + Producing Producing Producing Producing Producing Producing Producing Producing
HGOR + HBSW + HGOR + HBSW + + HBSW + HGOR + HBSW +
HGOR HGOR (e.g., NUPRC). MER can be equal or higher than TAR given allowables already constitute an infringe-
depending on the judging reservoir parameters. ment of the rules.
Under 1 13 1 3 1 7 5. At any time, the permissible production shall consist
Producing only of the allowables of the producing wells and
+ HBSW +
Monitoring and Surveillance the production from test wells yet to be granted
HGOR
The performance of producing wells are always allowables.
1 XY 6 1 1 1 7 monitored and reviewed using performance criteria 6. During production monitoring and surveillance,
2 AB 6 2 during the productive year. Monthly reports on problems wells are identified and remedial action
3 EF 1 1 producing wells are sent to oil and gas regulators. taken.
These reports are reviewed and used to monitor the 7. The right reservoir management strategy is
performance of each well. Bad performers are listed and diagnosed and adopted for ultimate recovery.
Figure 4: Production Summary interval Template appropriate actions taken on them. Production above
or below allowables are also checked. Production mon-
itoring also controls sand production which in effect References
protects surface facility. There is optimum long term • Brown, KE (1984); The technology of artificial lift
reservoir performance as the right reservoir man- methods. Volume 4 Tulsa, Oklahoma: Pen well pub-
MER, TAR, Production Monitoring and TAR is the maximum acceptable sustainable with- agement strategy is adopted as a result of proper lishing co.
Surveillance drawal rate from a sting, well or pool. TAR represent the production monitoring and surveillance (see Tables 2, • Bruce, DA (1976); Maximum efficiency rates – its
As illustrated earlier the difference and relationship ceiling of the production permitted from a well and may 3 and 4) use and misuse in production regulation, journal
between MER, regular production, TAR and how these not be exceeded. The sum of individual well allowables volume 9.3 pp. 441-453.
parameters are used in production monitoring and sur- gives the total reservoir production allowable as TAR is • Fetkovich, MJ (1973); the Isochronal testing of oil
veillance is key for the Oil and gas regulators. granted on well by well basis and are not transferable. Summary/ Conclusion wells, paper SPE 4529 presented at the SPE annual
MER as earlier defined is the maximum sustainable What this means is that each well must maintain the This paper can be summarized as thus, That: meeting Las Vegas. Neveda.
daily oil or gas withdrawal rate from reservoir which will allowed production given by the regulator regardless of • Sokubo, I, Obi, P (2018); a new approach to
permit economic development and depletion of that the production potential of that well. A well that has the 1. Accurate MER testing procedures and results is maximum efficiency rates estimation in the Niger
reservoir without detriment to ultimate recovery. For potential to produce higher than the allowed volume a key parameter in production monitoring and delta, paper SPE 193491 MS presented at the SPE
example, if gas or oil is produced at greater rates than given cannot be used to compensate for wells strug- surveillance. annual conference and exhibition, Lagos Nigeria.
the MER, the natural reservoir pressure will decrease gling to meet their given allowable figure (see Tables 2. MER is an integral parameter for TAR computation. • Mcfarland, JW, Springer, TE; Monash, EA, Lohrenz,
which results in less oil that is ultimately recovered. 2 and 3). 3. Production data and TAR data is vital for production J (1976); Maximum efficiency rates definitions and
MER results are analysed and used for production MER amongst other performance criteria is pre- monitoring and surveillance. calculations using a gas-water reservoir model.
monitoring. requisite in obtaining TAR from industry regulators 4. Production in excess of their allowables from wells USA: N.P, web.

68 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 69

 operations in their respective sectors. to incorporate a trust as stipulated in Section 236 (a),
Significantly, such reforms in the PIA have brought (d) and (e) of the PIA, the commission may within 14days
to the fore the Host Community Development Trust issue to such defaulting Settlor or Operator where
(HCDT). The HCDT is incorporated from respective applicable, a notice in writing of its failure to establish
host communities by the Settlors (operators). Host a trust and direct the Settlor to register the trust within
communities are referred to as communities situated 45days.
in or appurtenant to the area of operations (territory Except otherwise provided by the PIA, failure by
which host the operational or integrated facilities) of the Settlor (holder of an oil license or lease by the PIA)
a licensee or lessee of an upstream oil and gas asset to comply with its obligation of setting up a HCDT,
(settlor). after been informed of such failure in writing, the
Over the years, the relationship between host com- Commission as the case may be a ground for revocation
munities and oil companies has not been cordial. To of the operator license or lease.
address the frosty relationship between host commu- Upon setting up each HCDT, the Settlor in con-
nities and Settlor, the PIA introduced and designed sultation with the host communities, appoint and
the host communities development, to foster sustain- authorize a board of trustees which shall be incorpo-
able development within communities, provide social/ rated in Corporate Affairs Commission by the Settlor.
economic benefits and enhance peaceful harmonious The Constitution of the HCDT upon incorporation shall
co-existence between licensees or lessees and the contain provisions requiring the BOT to be set up by the
host communities, support the development of host Settlor who shall determine the criteria for the appoint-
communities. ment of its membership subject to the approval of the
The PIA makes it mandatory Commission. The BOT shall elect
that every Settlors (with existing a Chairman from amongst them-
operations or facilities under con- selves while the BOT secretary shall
struction) SHALL incorporate a be appointed by the Settlor. Each
HCDT in accordance with the Law. members of the BOT shall serve a
This HCDT is for the development term of four years subject to reap-
and/or benefit of the host com- pointment of another four years
munities. The PIA further provides term and no more.
that where there is a collectiv- Upon incorporation of the HCDT,
ity of Settlors operating under a THE HCDT WILL BE FUNDED the Constitution of the HCDT shall
joint agreement with respect to BY CONTRIBUTIONS FROM require the BOT to set up a man-
upstream petroleum operations, agement committee for the HCDT.
the operator appointed under the RESPECTIVE SETTLORS OF This management committee shall
agreement shall be responsible for AN AMOUNT EQUAL TO 3% comprise of one representative

PETROLEUM INDUSTRY ACT 2021: HOST

compliance with setting up HCDT. from each host committees. This
The PIA imposes different incor- OF ITS ACTUAL ANNUAL committee shall be responsible for

COMMUNITY DEVELOPMENT TRUST

poration timelines for the Settlors
depending on the nature of the
underlying license or lease such as
- Okon Charles - 1. Oil Mining lease within
12months from the effective
date
2. Existing designated facilities
OPERATING EXPENDITURE
IN THE IMMEDIATELY
RECEEDING FINANCIAL
YEAR
the general administration of the
HCDT adhoc committees such as
in preparation of budget of HCDT,
developing and management of
contracting process, nominating
of fund managers for appointment
etc. Furthermore, the Constitution

T
he Petroleum Industry Act (PIA) 2021 seeks
to provide legal, governance, regulatory and
fiscal framework for the Nigerian petroleum
industry. This is geared to overhaul activities
and further revamp the Nigerian petroleum industry in
achieving good governance, accountability, conducive
environment and foster sustainable development
in line with international best practices. The PIA has
introduced tremendous changes and reforms in the
Nigerian petroleum industry such as providing two
regulatory agencies—the Nigerian Upstream Petroleum
Regulatory Commission (NUPRC) and the Nigerian
Midstream and Downstream Petroleum Regulatory
Authority, (NMDPRA) that are responsible for the
technical and commercial regulation of petroleum
within 12months from the
effective date
3. New designated facilities under construction within
12months from the effective date
4. Prior to the application for field development plan
SUCH REFORMS IN THE PIA HAVE for existing oil prospecting license;
5. Prior to the application for any field development
BROUGHT TO THE FORE THE HOST plan under a petroleum prospecting license or
COMMUNITY DEVELOPMENT TRUST petroleum mining lease granted under the PIA
6. Prior to commencement of commercial operations
(HCDT). THE HCDT IS INCORPORATED for licensees of designated facilities granted under Further, 75% of HCDT’s fund is allocated to capital fund
this Act.
FROM RESPECTIVE HOST COMMUNITIES
BY THE SETTLORS (OPERATORS) Furthermore, Regulation 9 (1) of Nigerian Upstream
Petroleum Host Communities Development
Regulations 2022 provides, thus, “where a Settlor fails
mandates the management
committee to set up an advisory committee which
shall comprise of one member of each host communi-
ties. These committees are setup for the effective and
smooth running of the HCDT.
The HCDT will be funded by contributions from
respective Settlors of an amount equal to 3% of its
actual annual operating expenditure in the immediately
preceding financial year, with respect to its upstream
petroleum operations affecting the host communities.
to be disbursed towards host community development
projects, as determined by the management committee.
Unutilised sums may be carried forward to the following
year. 20% of HCDT’s fund is allocated to reserve fund,
which shall be invested by a fund manager on behalf of

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the HCDT. The reserve fund shall be
utilised for HCDTs whenever there
is a cessation of contributions from
the settlor. The balance 5% is to be
utilised against the administra-
tive cost of running the Trust and
special projects. Notwithstanding
the foregoing, each HCDT may
THE HOST COMMUNITY
Considering the above paragraph,
Regulation 1(c) of Nigerian Upstream
Petroleum Host Communities
Development Regulation 2022 a
grievance resolution mechanism
for settlement of disputes between
host communities and settlors. In
COMMISSIONCALL - Obianuju Akwunwa -

1
receive gifts, grants or honouria NEEDS ASSESSMENT addition, Regulation 39 (2) (a) (b),
that are provided to such HCDT (3), (4), (5), (6), (7), (8), (9), (10), (11)
for the attainment of their objec- SHALL METAMORPHOSED and (12) stipulates the procedure
tives. The HCDT shall manage and INTO A HOST COMMUNITY through which the Commission The Honourable Minister of State for Power, Prince Goddy Jedy-Agba
supervise the administration of the shall resolve any issue through
annual contribution. DEVELOPMENT PLAN the instrument of Mediation, paid a courtesy visit to the Commission Chief Executive (NUPRC), Engr.
The PIA empowers the Settlors WHICH SHALL BE Arbitration and Conciliation. This
Gbenga Komolafe to discuss areas of mutual interest and collaboration
to provide to the BOT of HCDT a Regulation applies to the host com-
matrix for disbursement of trust SUBMITTED TO THE munities and a holder of a license towards improving the National economy.
fund to their respective host COMMISSION or lease engaged in upstream
communities. This is to create petroleum operations.
transparency amongst respective The aforementioned extant reg-
host communities. ulation compliments the PIA hence
The PIA requires that upon grant of any license or
lease, the Settlor SHALL carry out a host community
needs assessment from a social, environmental, and
economic perspective. The host community needs
assessment shall metamorphose into a host community
development plan which shall be submitted to the
Commission to enable it to undertake its oversight
function preparatory to the establishment of the trust.
It is pertinent to note, the need assessment submission
needs to be conducted and implemented on or before
the expiration of the Settlor license or lease. Notably,
The HCDT does not get involved in the conduct of the
host community need assessment.
In the event of dissolution of HCDT, the adminis-
tration of the trust shall be subject to the provision of
Companies and Allied Matter Act.
Notably, some host communities have been faced
with peculiar challenges bothering on nomination
of their respective community representatives into provides substantive and procedural requirement for
HCDT. Such aggrieved communities alleged that some the establishment and administration of the trust and
individuals in conjunction with the Settlor usurp their the fund for the upstream host communities.
legitimate representation into HCDT. Consequently, The Petroleum Industry Act 2021 has introduced
this has birthed multiple litigations by aggrieved com- several innovative provisions to the Nigerian petroleum
munities with the Commission as a party. However, the industry. This Act attempts to address comprehensively,
commission in an attempt to mitigate the various liti- the nagging issues that have bedeviled the Nigerian
gations between parties exercised its powers pursuant petroleum industry. The PIA is quite commendable
to Section 234(2) of the PIA 2021 which confers on the as same will foster development and project in the
Nigerian Upstream Petroleum Regulatory Commission Nigerian oil industry. This Act will cushion the effects of
(the Commission) the authority to make regulations exploration activities by representing the person who
with respect to grievances between HCDT and Settlors. occupies such communities with some sort of compen-
This mandate on the Commission birthed the underl- sation where exploration activities distort their means
isted extant regulations: of livelihood, and also putting in place some measures
1. Nigerian Upstream Petroleum Host Community to safeguard investments, facilities and operations of
Development Regulation 2022 Settlors in host communities, prevent exploitation of
2. Host Community Development Trust host communities, degradation of their environment,
Implementation Template. etc.

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2 3
The NUPRC Chief Executive, Engr. Gbengba Komolafe
receives award of recognition as Special Guest of honour
at the Quarterly Petroleum Club Dinner at the Civic Centre
Victoria, Island Lagos.
Sudanese delegation from EuroAmerican Energy led by Mr Idris Taha,
paid a courtesy visit to the NUPRC Chief Executive, Engr. Gbenga
Komolafe, to discuss areas of mutual interests and collaboration in the
upstream oil and gas sector between the two countries.

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4 5
His Excellency the Vice President, Professor Yemi Osinbajo declared
open the Stakeholders Conference on Oil Theft/Losses in Nigeria
theme "Protecting Petroleum Industry Assets for Improved Economy"
organised by the Special Investigative Panel on Oil Theft/Losses in
Nigeria, at Transcorp Hilton Hotel Abuja.
76 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023
The Commission Chief Executive, Engr Gbenga Komolafe received
the Managing Director of Equinor Nigeria Energy Company
Limited, Ms. Christel Kvalvik, at the NUPRC headquarters in Abuja.
The visit was to appreciate the massive support received from the
Commission and explore possible investment opportunities in the
Upstream Sector of the Nigerian Oil and Gas Industry.
U P S T R E A M GA Z E M AGA Z I N E 77
6 7
Engr. Gbenga Komolafe, FNSE, the Commission Chief Executive received
Mr. Victor Banjo MNI, the Director of Executive Education at Lagos
Business School, who paid him a courtesy visit at the Commission’s NOSA OMORODION, EXECUTIVE DIRECTOR
Headquarters in Abuja. The purpose of the visit was to discuss potential SLB VISITS NUPRC CHIEF EXECUTIVE,
areas of mutual interest and collaboration, with focus on human capacity GBENGA KOMOLAFE
building.
The Executive Director SLB, Dr Nosa Omorodion paid a courtesy visit to Engr.
Gbenga Komolafe, to officially inform the Commission of the ongoing re-branding of
Schlumberger to SLB.
Among other things the visit was also to reassure NUPRC of SLB collaboration
in all areas of mutual interests towards the sustainable development of Nigeria's
hydrocarbon resources in the wake of a global clamour for transition to renewable
and other cleaner forms of energy.
Engr. Komolafe
appreciatedthe visit
and assured the
executive director of the
commissions continued
support in enabling
business in the upstream
petroleum sector.

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8
SECURITY MANAGEMENT
NUPRC RECEIVES AWARD OF QUALITY AND
TIMELY SERVICE DELIVERY FROM THE NATIONAL
COORDINATOR SERVICOM
The Commission Chief Executive, Engr. Gbenga Komolafe received the award on behalf of
the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). It is in recognition of
Engr. Komolafe's sterling leadership as the helmsman of the Commission. SECURE ACCESS TO
THE OFFICE
LABEL ALL OFFICE
EQUIPMENT
USE EFFECTIVE
LIGHTING
INSTALL CCTV
AND ALARM SYSTEMS
IMPLEMENT A BADGE
SYSTEM

The award also included a letter of commendation which was presented to the CCE by
the National Cordinator/Chief Executive Officer of SERVICOM, Mrs Nnenna Akajemeli,
at NUPRC Head office Abuja.

The CCE thanked the

SERVICOM Cordinator for
the honour and reassured
CREATE AN ENHANCED USE GIVE EMPLOYEES THE PROTECT MAINTAIN PHYSICAL
her of the Commission's ALARM SYSTEM USING ASSET TRACKING RIGHT TOOLS IT DATA SECURITY
commitment to best in MOTION SENSORS

class excellent customer

service delivery for the Security management is critical to everyone in an organization, impacting
overall benefit of internal everything from employee well-being to productivity. Security and Safety always
and external stakeholders. matters, especially when it comes to the workplace. Strong office security is key to
protecting your office environment, employees, and data. While it’s a good idea to
invest in sufficient security measures, those measures work best when security is
a team effort. Safety in the office is everyone’s concern.
For all these reasons, we need robust workplace security policies and procedures
in place. This helps to protect themselves from existing, emerging, or potential
risks. Do find below a list of office essential security measures that are required in
modern office security management.

1SECURE ACCESS TO THE OFFICE

A secure access control system is one of the
most critical factors in maintaining a safe work
environment. Unauthorized personnel should not
have access to secure locations and information, so
take steps to limit access to those areas.
2 LABEL ALL OFFICE EQUIPMENT
One great way to prevent theft or loss of important
office equipment is labelling everything. For
additional ease of identification, make sure the tags
carry the company logo and a unique inventory
identifier.

80 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 81

3 USE EFFECTIVE LIGHTING
Motion-sensitive lights are a powerful and cost-
effective measure for keeping the premises
secure. These lights are designed to activate
when something comes into the vicinity, which
can help surprise intruders when they least
expect it. Effective lighting also works to protect
other areas, like the carpark. Carparks are isolated
and often poorly lit, so consider investing in more
powerful lighting to discourage auto theft and
other incidents
5 6
IMPLEMENT A BADGE SYSTEM
One of the best ways to enhance workplace
security is also one of the easiest: installing a
badge system that regulates who has access to
what in any physical spaces. With a badge system,
employees (and sometimes visitors) have key cards
or use their phone or an ID badge to gain physical
access to whatever spaces or resources they need.
7
USE ASSET TRACKING
While employee security will always be the primary
focus, business assets also need to be protected.
That’s why asset tracking should be part of the same
workplace management software that handles
these other systems. For example, OfficesSpace
offers asset tracking that makes it easy to track not
just people, but any valuables, big or small. This
lets businesses track everything from printers and
Sit/Stand desks to laptops or even the first aid kit.
9
PROTECT IT DATA
Password protection, VPNs, and similar steps all
have the same goal: data protection. As we all know,
along with the benefits of the digital workspace
come the associated risks. Namely, if we’re online,
we’re vulnerable to hackers. Today, even small
companies are no longer safe from bad actors. In
fact, given their often laxer security, many hackers
will see them as easy targets.
82 U P S T R E A M GA Z E M AGA Z I N E
4
INSTALL CCTV & ALARM SYSTEMS
To many, CCTVs are more commonly
associated with solving crimes rather than
preventing them. However, visible cameras
can also work as deterrents, possibly scaring
off intruders rather than risk being recorded.
NUPRC CCE, NNPCL GCEO & NMDPRA ACE,
PAY COURTESY VISIT TO THE COMPTROLLER
In case of any suspicious activity, you can also
GENERAL (CG) NIGERIA IMMIGRATION
SERVICE, ON CONTAINMENT OF CROSS BORDER
use the video as evidence for investigators or
to patch holes in your defenses
SMUGGLING OF PETROLEUM PRODUCTS
CREATE AN ENHANCED ALARM - Folakemi Famoroti -
SYSTEM USING MOTION SENSORS
Badge systems work best when they are part of
C
complete smart buildings: IoT. When it comes ross-border smuggling of petroleum products environment. Therefore, containing cross-border
to workplace security, IoT sensors can help can have serious economic, social, and environ- smuggling of petroleum products is crucial for ensuring
automatically keep track of where everyone is— mental consequences. It can lead to revenue a level playing field for legitimate businesses, protecting
especially if they’re not supposed to be there. losses for governments, price distortions, and public safety, and preserving the environment. These
8
unfair competition for legal businesses. Smuggled issues and more were discussed with possible solutions
products may not meet safety standards, and their suggested when the heads of the various agencies met.
transport can pose a risk to public safety and the
GIVE EMPLOYEES THE
RIGHT TOOLS
Of course, companies can do a lot more to help
employees protect assets than simply giving them
a good laptop case. Specifically, employees should
be able to easily encrypt critical data (coupled with
good encryption policies, which we’ll explore further
below). All employees should also be using antivirus
software and password protection tools. Ideally,
this will include strict guidelines on creating secure
passwords, along with two-factor authentication
(2FA) or multi-factor authentication (MFA).
10
MAINTAIN PHYSICAL SECURITY
Finally, don’t forget that old-school physical security
is still incredibly important for workplace security.
That’s why part of a risk assessment should always
be to find and address potential access points.
Especially weak ones, such as doors, windows, and
unresistant walls. So while IoT sensors have their
place, so do heavy locks and durable barricades,
and, quite frequently, security cameras.
VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 83
 PROTOCOLS
D
istinguished Guests, Ladies and Gentlemen, I am
highly pleased to have been invited to this special
oil and gas industry dinner organized by the Lagos
Petroleum Club. It is remarkable that the Lagos
Petroleum Club has maintained its esteem and eminent
position in Nigeria while creating conducive forum for leaders
in the Nigerian Oil and Gas Industry and seasoned profes-
sionals and associates of the industry to interact, unwind,
and share ideas on industry issues.
2. Let me begin by saying that the organisers deserve
accolades for organising this beautiful event. It is gratify-
ing that since its establishment over one and half decades
ago, the Lagos Petroleum Club has been leading with pro-
grammes and ideals that have contributed to excellent policy
formulation and promotion of strategic interest of the oil and
gas industry in Nigeria. Unarguably, your Club has become
recognised as a veritable platform for incubation of ideas in
the oil and gas industry. Thank you for living up to the ideals
for founding the Club. Thank you for your indelible footprints
in the development of the Nigerian hydrocarbon industry.
Thank you.
3. Distinguished guests, it is a great privilege for me, to
share my thoughts on the topic: “NIGERIAN UPSTREAM
PETROLEUM SECTOR: VALUE OPTIMIZATION, ENERGY
TRANSITION AND REGULATORY PERSPECTIVES” with
the enlightened and important audience we have here
tonight.
4. In dealing with the topic for discussion today, it is crucial
to lay a background and touch on some fundamentals.
Recall, Section 6 of the PIA 2021 prescribed a number of
statutory functions for the Commission as the upstream
petroleum technical and commercial regulator. In alignment
SPEECH BY THE COMMISSION CHIEF
with these objectives, we have focused on achieving basic
regulatory goals which include: increasing Nigeria’s oil and
EXECUTIVE (NUPRC)
gas reserves and production, developing a transparent
approach to hydrocarbon accounting, and attaining opera-
tional efficiency and effectiveness in the industry operations.
- ENGR. GBENGA KOMOLAFE, FNSE - In addition, the Commission is committed to facilitating
AT THE PETROLEUM CLUB QUARTERLY DINNER
peace and harmony in the host communities to guarantee
conducive operating environment for investors, positively
impact on operating cost and attraction of more investment
“NIGERIAN UPSTREAM PETROLEUM SECTOR:
opportunities.
VALUE OPTIMIZATION, ENERGY TRANSITION
Strategic Actions for Hydrocarbon Value Optimization
AND REGULATORY PERSPECTIVES”
5. Distinguished Ladies and Gentlemen, In keeping with
industry laws and regulations, the Commission has issued
a licensing round guideline and published a licensing round
84 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023
plan for a total of seven open blocks (300-DO, 301-DO,
302-DO, 303DO, 304-DO, 305-DO & 306-DO). We are
currently evaluating the Expression of Interest (EOI) received
from prospective investors. The exercise is indeed expected
to be a huge success for Nigeria and a big step towards
growing the nation’s oil and gas reserves. This will be done
through aggressive exploration and development efforts.
6. Also, as part of strategy for value optimization and
increased production from our national oil and gas reserves,
the commission has focused on regulatory initiative aimed
at reviving declining wells through enhanced oil recovery
approach. The Commission is working with operators to
identify candidate wells and appropriate interventions that
would lead to increased production.
7. In addition, the Commission is focusing on shut-in wells
which can be revived. In pursuance of this, The Commission
inaugurated a committee on June 23, 2022, to conduct
industry-wide study on reactivation of Shut-in strings.
The committee has submitted its report, and includes rec-
ommendations categorised into Quick Wins, Medium and
Long-Term initiatives that will enhance national oil and gas
production volumes.
8. Ladies and Gentlemen, findings from the report revealed
that, over 900,000 barrels of oil per day can be earned
from the Quick Win interventions while the Medium and
Long-Term initiatives could potentially add 1.2M barrels
of oil per day if properly and fully implemented. The total
number of strings that need to be revived is also known
and the Commission has commenced engagement with the
relevant operators to operationalise the initiative.
9. The Commission has also completed the 2020 Marginal
Field Bid Round and issued fifty (50) Petroleum Prospecting
Licenses (PPLs) to deserving awardees. It is expected that
with the existing discoveries in the awarded fields, early Field
Development Plan (FDP) would be pursued by the awardees
leading to incremental oil and gas production. On its part,
the Commission is facilitating timely approvals for expedited
re-entry and early production. The estimated incremental
production from the awarded fields is approximately 58,000
bpd and 87mmscf/d.
10. In the short/medium term, we expect an estimated
incremental volume of 461,000bpd and 565mmscf/d from
new wells and well re-entry. In the long term we expect
an estimated incremental volume of 162,000bpd and
868mmscf/d from FDPs which have been approved and
are at various stages of execution.
U P S T R E A M GA Z E M AGA Z I N E 85

11. Ladies and Gentlemen, one major area of value erosion
in the industry is the menace of crude oil theft. Our records
indicate that the menace of oil theft has negatively impacted
the oil and gas sector for about two decades with attendant
huge financial losses to our nation. I must point out that
on the marching orders of Mr. President, His Excellency,
President Muhammadu Buhari GCON, the Commission in
collaboration with the various arms of the Security forces,
the NNPC Limited and the Host Communities have been
able to suppress the ugly trend of hydrocarbon value dec-
imation. Now, our nation has continued to record good
dividends of these collaborative efforts as production figures
are progressively increasing. The January 2023 volume is
approximately 1.5 million barrels per day of oil and conden-
sates. It is expected that this number will continue to increase
as further measures are introduced and sustained to remove
all illegal connections that aid crude oil theft.
Towards Transparency in Hydrocarbon Accounting
12. The Commission recently held consultations with
stakeholders in respect of the third phase of Regulations,
among which is the Upstream Petroleum Measurement
Regulations. These regulations have been developed to
ensure sustainable transparency in hydrocarbon accounting.
The Commission has also conducted a forensic audit covering
the period January 2020 to November 2022 on crude theft
numbers with a view to ascertaining with accuracy the stolen
volume of crude oil within the reference period. The report
showed that approximately 40% of the volumes credited to
crude losses are attributable to measurement inaccuracies.
13. Ladies and Gentlemen, the Commission is committed to
deal with issue of metering errors by ensuring that Original
Equipment Manufacturers (OEMs) licenced directly as agents
of the Commission will be responsible for deployment and
maintenance of metering facilities across the Nigeria’s oil and
gas facilities for transparency in hydrocarbon accounting.
This reform measure offers a paradigm shift from the tra-
jectory in Nigeria’s hydrocarbon measurement since oil was
discovered in Nigeria in Oloibiri in 1956 and it aligns with a
fundamental principle of Justice “Let no one be a judge in
his own case.”
Operational Efficiency
14. In our quest to improve operational efficiency, we
have redesigned our operational processes to be more
business-like and accountable. Processes have been stream-
lined and clarified and staff are encouraged to continually
challenge the status quo in line with our philosophy of con-
tinuous innovation and improvement.
Implementation of Host Community Provisions under
Section 235 of PIA
15. Industry Captains, Distinguished Ladies and Gentlemen,
Section 235 of the PIA 2021 saddles the Commission with the
responsibility of ensuring conducive and peaceful relationship
86 U P S T R E A M GA Z E M AGA Z I N E
among stakeholders within the Host Community through
the implementation of the Host Communities Development
Trust.
16. The Commission, in collaboration with the relevant stake-
holders, has developed templates and gazetted regulations,
which includes that of the Host Community Development
Trust (HCDT). The essence of the HCDT is to integrate oil
bearing communities into the value chain and effectively
cater for the development needs of impacted communities,
thus positively curbing restiveness in such communities and
offer enabling environment for operators to thrive. This is
expected to guarantee seamless operation, boost investor
confidence, and provide enabling environment for sustain-
able development of the country’s hydrocarbon resources.
We are happy to disclose that over 60 Host Community
Development Trust have been approved by the Commission.
This is indeed a milestone in the implementation of the PIA,
2021.
FDP Budget, Cost Monitoring and Benchmarking
17. Ladies and Gentlemen, our strategic thrust is to ensure
that all our interventions as regulator translate into signifi-
cant reduction in the cost of doing business in the upstream
petroleum industry.
In addition to these measures, Section 8 of the petroleum
act mandates the Commission to undertake the commer-
cial regulation of the operations of the industry as well as
develop cost studies and benchmarks for the evaluation of
upstream petroleum operations.
18. The focus on cost reduction as it relates to unit operating
cost (UOC) stems from a comparative analysis of other juris-
dictions, with a view to determining where we want to be.
Our current UOC ranges from $15 (deep offshore) to $25
(onshore/shallow waters). It is obvious that Nigeria needs to
improve its cost efficiency.
19. Ladies and Gentlemen, the Commission asides its regu-
latory functions, also offers advisory roles to
Government on upstream oil and gas policy formulation.
VOL.3 2023
Conscious of the concerns of industry investors and
operators alike on the potential unfavourable impact of the
Finance Bill, 2022 on the industry, the Commission has made
a strong representation to Government for consideration.
Fiscal regimes in the PIA- Seventh Schedule
20. The new fiscal framework in the PIA 2021 regulatory
environment boasts of lower fiscal terms that are globally
competitive and carefully put in place to improve returns on
every dollar invested in Nigeria’s petroleum operations. The
generous fiscal terms in the Seventh Schedule of the PIA are
designed towards creating additional opportunities for new
investments in Nigeria, as they aim to boost investor con-
fidence and making Nigeria the preferred investment hub.
Development of priority regulations as tool for sanity
and predictability- Section 216
21. The Commission is committed to creating enabling and
predictable regulatory environment via the development of
regulations that will give meaning and intent to the PIA 2021.
In view of that, some priority regulations for the upstream
petroleum sector have been developed by the Commission
within its short existence. The Act also provides for a consul-
tative forum to be held for the concurrence and input from all
stakeholders in the upstream petroleum operations before
the finalization of regulations. Five (5) of the regulations
have been completed and gazetted while thirteen (13) other
draft regulations have been reviewed with stakeholders and
awaiting gazetting.
Initiatives to Enhance Gas Production
22. In line with the Federal Government’s declaration of the
period 2021 - 2030 as the Decade of Gas, the Commission
is taking steps to expand and develop the Nation’s huge
gas resources through enhanced gas exploration, devel-
opment and utilization schemes. This will ultimately lead
to gas reserves’ growth, increased gas production, matura-
tion of domestic and export gas market, as well as gas flare
elimination.
23. Furthermore, in the face of the global energy transition
and the need for cleaner sources of energy, gas is being posi-
tioned as our immediate transition fuel to lower the Nation’s
carbon emission footprint in line with our climate change
commitment.
24. Currently, Nigeria produces about 8BSCF/D of gas, out
of which approximately 20% is delivered to the
domestic market, approximately 40% is exported to
international markets, 30% is utilised for producer’s internal
consumption and the excess gas is flared.
Climate action plan in FDPs and operations
25. Ladies and gentlemen, our commitment to the various
climate agreements places a demand on us all to keep global
VOL.3 2023
temperature rise within 1.5 °C – 2.0 °C of pre-industrial levels.
The implication of this for Nigeria’s oil and gas industry are
far-reaching. The need to decarbonise our production facil-
ities not only requires the right policy direction but also
demands adequate measurement of all greenhouse gas
(GHG) emissions to ensure we achieve our net-zero target
by 2060.
26. The Commission supported the review and assess-
ment of the national GHG emissions as part of series of
workshops that led to revision of the Nationally Determined
Contributions (NDCs) policy submitted to the United Nations
Framework Convention on Climate Change (UNFCCC) ahead
of the 26th Conference of Parties (COP26) summit in Glasgow,
Scotland 2021. Fugitive methane emission reduction target
(60%) from Oil & Gas was added to Nigeria’s NDC for the first
time based on robust data provided by the NUPRC.
27. The development of guidelines on the management
of fugitive methane and GHG emissions in the upstream
sector that will drive emission reduction and mitigations
targets of the National Determined Contributions (NDCs)
has been approved and is being operationalized. The
Commission is currently engaging the International Finance
Corporation (IFC) on opportunities surrounding Carbon
Capture Utilisation and Storage and development of national
framework on CCUS.
28. We look forward to a more collaborative working
relationship with the operators in the industry for value
optimization. Such collaborative aspirations would target
unlocking the huge potentials we have as a nation in the
Deep Play prospects, Frontier Basins and the Deep Offshore
environments.
29. We would also be leveraging on technology to achieve
our mandates by ensuring all our processes become fully
automated and more transparent in line with the prescrip-
tions of the PIA. Furthermore, relevant guidelines that will
provide clarity on every aspect of oil and gas operations will
be issued by the Commission in keeping with our core values.
30. Distinguished Ladies and Gentlemen, as we conclude
this presentation, let me express our commitment towards
collaboration and engagement with stakeholders on
effective and efficient exploitation of our national hydro-
carbon resources.
31. Finally, Captains of Industry, Distinguished Stakeholders,
Ladies and Gentlemen, from our regulatory periscope, the
year 2023 holds promise to be eventful and the Commission
counts on your support all to deliver on the potentials of
Nigeria’s oil and gas sector.
Thank you.
U P S T R E A M GA Z E M AGA Z I N E 87

THE NIGERIAN GAS FLARE
COMMERCIALISATION PROGRAMME
(NGFCP 2022)
SYNOPSIS
Nigerian Upstream Petroleum Regulatory Commission
(“The Commission”), in August 2022, relaunched the
Nigerian Gas Flare Commercialisation Programme
(“NGFCP 2022”) to drive Nigeria’s commitment to end
routine gas flaring within the decade, support the
imperatives of the Nigeria Energy Transition Plan (ETP)
and create value from waste.
The NGFCP 2022 was restructured to reflect current
gas flaring situation and prevailing operational realities
in the industry, as well as changes in the socio-eco-
nomic landscape due to the passage of time since the
NGFCP was originally conceived, all in alignment with
the Petroleum Industry Act 2021 (PIA).
It will be recalled that the PIA was enacted to redefine
the legal, governance, regulatory, and fiscal structure
of the Nigerian oil and gas industry for enhanced
efficiency and value. In addition to establishing the
88 U P S T R E A M GA Z E M AGA Z I N E
Commission as the Upstream technical and commercial
regulator, the PIA provides a clear framework for flare
elimination & monetisation in Nigeria which underpins
the redesign of the NGFCP.
The Petroleum Industry Act 2021 (PIA) and its enhanced
regulatory enablers have addressed the bottlenecks
that hitherto impeded the expeditious implementa-
tion of the Programme. The NGFCP 2022 is therefore
modified to deliver end-to-end value from flare gas
commercialisation to both existing and new partici-
pants. In reliance of Section 105 (2) of the PIA and similar
provisions enabling the Commission in that respect, the
Commission commenced the Request for Qualification
(RFQ) stage of the NGFCP 2022 through the issuance
of Statement
of Qualification (SOQ) to enable existing applicants to
validate their status and for new investors to register to
participate through the NGFCP website/ portal.
The NGFCP 2022 recorded significant interest from
VOL.3 2023
stakeholders including existing participants, new
investors, multi-lateral institutions, equipment manu-
facturers and the wider investment communities, both
domestic and international.
As at the SOQ submission deadline, Three Hundred
(300) companies/entities registered their interest to
either revalidate their prequalification status as existing
participants or submit Statement of Qualification (SOQ)
as new participants.
In line with the provisions of the RFQ, the SOQ eval-
uation exercise was conducted by the Commission,
where in a total of One Hundred and Thirty-Nine (139)
Applicants were deemed successful and awarded the
Qualified Applicant status.
To that end, and in reliance on Section 105 (2) of the
PIA and similar provisions enabling the Commission in
that respect, the Commission has published the list of
Qualified Applicants who will proceed to the Request
for Proposal (RFP) phase of the NGFCP 2022. The
details of the SOQ evaluation exercise can be accessed
on the NUPRC Website and NGFCP Portal via www.
nuprc.gov.ng and ngfcp.nuprc.gov.ng, respectively.
THE NGFCP 2022 – AN OVERVIEW
The Federal Government of Nigeria (FGN) maintains
a long-standing policy against gas flaring due to its
deleterious impact on host communities, the effect
on global climate change, and the resource waste and
value erosion the unwholesome practice represents. To
this end, the FGN pledged its commitment to Net Zero
carbon emissions by 2060 at COP26, passed the Climate
Change Act, and recently launched the Nigeria’s Energy
Transition Plan, all of which reinforce the need for the
VOL.3 2023
oil and gas industry to spearhead FGN’s mandate to
reduce carbon emissions.
The recently enacted PIA has overhauled the legal/reg-
ulatory landscape and established the NUPRC as the
upstream technical and commercial regulator, charged
to implement the industry transformational reforms
for the upstream sector for enhanced efficiency and
productivity, including the FGN’s flares-out mandate.
These landmark changes made the redesign of the
NGFCP imperative.
Consequently, the Commission restructured the NGFCP
to ensure that the flare auction process is executed in
line with prevailing realities via an accelerated delivery
timeline. The renewed Programme will preserve
opportunities for existing applicants while expanding
participation to new investors.
NGFCP 2022 is therefore a new iteration of the flare
commercialisation initiative modified to adapt to
changes in the industry and market with a renewed
focus to implement Government’s policy objectives
for flare elimination, environmental sustainability, and
gas-based industrial economy in Nigeria.
OBJECTIVES OF THE NGFCP 2022
The overarching objectives of the Programme are high-
lighted as follows:
• Eliminate routine gas flaring and create additional
revenue from gas sales.
• Monetise flare gas resources, prevent pollution and
create value from waste gas.
• Deepen in-country value addition through indig-
enous participation in the sector, in line with the
provisions of the PIA.
• Support the achievement of the National
Determined Contributions (NDC) towards the
Paris agreement (COP 26) and the Nigerian Energy
Transition Plan (ETP)
• Attract Foreign Direct Investments (FDIs) in the Oil
and Gas Industry
• Create gas-based industrialisation for enhanced
socio-economic benefits in and around host com-
munities in producing areas.
NGFCP 2022 QUALIFICATION, BIDDING
AND AWARD STRUCTURE
Figure 1 illustrates the auction architecture of the
NGFCP 2022 featuring the two-pathways for the RFQ
process which has been concluded by virtue of the suc-
cessful completion of SOQ evaluation and subsequent
U P S T R E A M GA Z E M AGA Z I N E 89

announcement of Qualified Applicants (QAs). Subsequently, all QAs would
proceed to the RFP phase to submit their respective bids for the flare site(s)
or cluster(s)of interest.
Figure 1. Qualification, Bidding and Award Structure
NGFCP 2022 – CURRENT STATUS AND MILESTONES
Following the RFQ stage, the NGFCP 2022 has transited to the RFP stage
with the imminent issuance of the RFP package and Suite of Commercial
Agreements.
Figure 2 illustrates the milestones leading up to “Award of Permit to Access
Flare Gas” by March 2023.
In line with accelerated implementation schedule, the
timelines for successive activities that underpin the
above milestones are:
• Issuance of RFP and Suite of Commercial
Agreements - 20th January 2023
• Opening of the Virtual Data room - 26th January,
2023
• Bidders’ Conference/ Investors‘ Forum - 2nd
February 2023
• Bid Submission Due Date (BSDD) – 28th February
2023
• Announcement/ Notification of Preferred/ Reserve
Bidders status - 24th March 2023.
OUTCOME OF THE SOQ EVALUATION
EXERCISE
The Commission is delighted to record significant
interests from wide-ranging investors, business com-
munities and stakeholder groups in the first-of-its-kind
flare commercialisation programme. Following series
of high-profile engagements, investment fora and
roadshows led by the Commission Chief Executive
(CCE), a total of Three Hundred (300) companies
registered to revalidate their prequalification status
or submit Statement of Qualification (SOQ) as existing
bidders or new participants, respectively.
Following evaluation of the submitted SOQs, a total
of One Hundred and Thirty-Nine (139) Applicants
were deemed successful and awarded the Qualified
Applicant status in line with the provisions of the RFQ.
Consequently, in consideration of Section 105 (2) of
the PIA and similar provisions enabling the Commission
in that respect, the Commission has published the list
of Qualified Applicants on the NUPRC website and
NGFCP Portal. The successful applicants have been duly
notified and will therefore proceed to the Request for
Proposal (RFP) phase. The RFP Package and supporting
materials have been approved by the Commission Chief
Executive (CCE) for issuance to the Qualified Applicants.
upcoming Bidders’ Conference & Investors’ Forum.
BIDDERS’ CONFERENCE AND
INVESTORS’ FORUM
The Commission invited Qualified Applicants, finan-
ciers, technology providers, equipment manufacturers,
service providers, funders, and other interested entities
to the Bidders’ Conference/ Investors’ Forum, that was
held in Abuja, Nigeria on February, 2nd 2023, was a
hybrid event with option for virtual participation. In
addition to affording QAs the opportunity to seek clari-
fications and provide valuable inputs on the programme
requirements, the Forum facilitated engagements of
QAs with technology providers, prospective lenders,
and finance institutions as well as foster business
relationships and partnerships for overall Programme
success.
Finally, on behalf of the Board and Management of
the Commission, I heartily congratulate all successful
applicants and enjoin them to follow through with
the subsequent stages of the Programme towards
becoming a Permit Holder/Flare Gas Buyer in line with
the applicable statutes.
Once again, congratulations to all Qualified
Applicants!
Engr. Gbenga Komolafe, FNSE
Commission Chief Executive

ISSUANCE OF THE RFP AND SUITE OF

COMMERCIAL AGREEMENTS
Following series of stakeholder consultations to
ensure robustness of the RFP and that the concerns
of investors, producers, and interest groups are ade-
quately addressed, the Commission has issued the
RFP package and Suite of Commercial Agreements
Figure 2. Status and Milestones to the Qualified Applicants. This is to enable Qualified
Applicants ample time to study the document and
commence packaging their bids. Additional comments,
inputs and feedback from relevant stakeholders will
be received, evaluated, and considered during the

90 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 91

 GAZESPORTS - Dare Olaniyan -

Flying Eagles Bag Bronze Medal at U20

African Cup, Qualify for Under 20 World Cup

N
igeria’s Flying Eagles picked up bronze medals
at the U20 African Cup of Nations after
defeating young Carthage Eagles of Tunisia
with a resounding victory.
The Flying Eagles bounced back from their disap-
pointing lone goal loss against Gambia in the semifinal
to dominate against the Tunisians right from the
beginning of the match.
Ibrahim Muhammad opened the scoring in the first
half, while Ahmed Abdullahi and Jude Sunday increased
the scoreline to 3-0 in Nigeria’s favour.
Their third place finish means the Flyings Eagles have
secured a slot at the upcoming U-20 World Cup to hold
in Indonesia.
They may likely face Italy, USA, or France

Developing
Regional Know-How
At Petroleum Technology Development Fund, we are charged to
develop indigenous manpower and technology transfer acquisition
in the petroleum industry as well as make Nigeria a human resource
centre for the West African sub-region.

We are poised to train Nigerians to qualify as graduates,

professionals, technicians and craftsmen in the field of engineering,
geology, science and management in the oil and gas industry in
Nigeria and abroad.

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Mobile: +234-810-6857806, +234-810-6801744
Email: info@ptdf.gov.ng Web: www.ptdf.gov.ng
92 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 93
 INTERNATIONAL

GAZETAINMENT - Adewale Osoneye -

WO M E N ' S D AY
2023
Tems Bags WE CAN

Grammy Award!
N
igerian award-winning
artiste, Temilade Openiyi,
professionally known
as Tems, has achieved
another significant milestone in her
music career by winning a Grammy
Award for her role in Future’s hit
song ‘Wait for you’, which also
featured Canadian superstar rapper
Drake..
The song was nominated in the
best melodic rap performance
category, at the recently concluded
65th Annual Grammy Awards event
held in Los Angeles, USA.
Tems Grammy win also demon-
strates her exceptional talent and
we are
contribution to the music industry.
It is really inspiring to see Nigerian
artistes making waves on the
together
global stage and collaborating with
renowned international artists like
Drake, Beyoncé, Future Rihanna
among others
She, like her fellow talented com- THEME
#EMBRACEEQUITY
patriots in the creative art industry,
has put the country in the spotlight
for good reasons. Congratulations!
MARCH 8 2023

NIGERIAN UPSTREAM PETROLEUM REGULATORY COMMISSION

No. 7, Sylvester Ugoh Crescent, Off Obafemi Awolowo way, Jabi District, Abuja.
Tel +234 (1) 2790000, 9037150 Email info@nuprc.gov.ng Website www.nuprc.gov.ng

94 U P S T R E A M GA Z E M AGA Z I N E VOL.3 2023 VOL.3 2023 U P S T R E A M GA Z E M AGA Z I N E 95

OIL THEFT DESTROYS OUR LIFE, LAND & KILLS THE NATION’S ECONOMY

A NIGERIAN UPSTREAM PETROLEUM REGULATORY COMMISSION CAMPAIGN