The Federal Government will in the coming weeks, release 13 new regulations in the upstream sector of the oil and gas industry.
This was revealed by the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, on the sidelines of the ongoing Nigerian International Energy Summit in Abuja on Tuesday.
According to Komolafe, the new regulations will be in addition to the six already introduced a few weeks ago by the agency.
Although he did not list what the new regulations are, the NUPRC boss said they were aimed at ensuring that the oil and gas sector was not strangulated.
He said, “I beg to correct the notion that the commission is running the upstream sector with regulations that were not participatory. Apart from the six introduced some weeks ago, some fresh 13 regulations will also be introduced in about two weeks’ time. Our regulations have carried everyone along to ensure that the sector is not strangulated. We also ensure that our regulations are in conformity with the government’s energy transition plan.”
Komolafe was reacting to allegations by earlier panel speakers, who accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority and NUPRC of implementing regulations capable of discouraging healthy business environment in the sector.
He added that the commission had set up a carbon department in charge of ending gas emission as part of the country’s journey towards energy transition.
Earlier, Vice President Yemi Osinbajo had reiterated the Federal Government’s commitment to the implementation of the energy transition plan set for 2060.
According to him, the $50m carbon market initiative partnership deal recently signed between the Federal Government and Vitol was a testament that the outgoing administration was committed to ending carbon emission and providing an enabling environment for both businesses and the masses to thrive.
Komolafe noted that the agency was aware of some of the challenges operators were facing regarding the regulations, adding that amendments would be done if the need arose.
He identified challenges bedeviling the upstream sector as funding and security.