TheCable

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says Nigeria is gradually reversing the investment decline in the oil and gas upstream sector.

Gbenga Komolafe, chief executive officer (CEO) of the commission, made this known in Lagos after receiving ‘The Sun Public Service Award 2023’, at the newspaper’s 21st anniversary award dinner held over the weekend.

Komolafe said the country recorded capital expenditure (capex) worth billions of dollars within the last two and a half years on the back of the implementation of the Petroleum Industry Act (PIA).

He said the restoration of investors’ confidence and the establishment of stability and predictability in the sector has a huge impact on the industry.

The introduction of the ‘first’ crude oil measurement regulation in Nigeria’s over 70 years of oil and gas production, according to the NUPRC CEO, would save the nation billions of dollars.

According to Komolafe, the nation’s upstream sector currently has roughly 30 rigs, compared to just 11 active rigs in 2011. He attributed the notable development to the industry’s ability to attract and retain investors.

“That is huge success for us, and you know that rig count is a measure of vibrant activities in the oil industry. We have been able to attract confidence, certainty, predictability, into the industry,” he said.

“If you check, we’ve attracted Capex going into billions of dollars into the Nigerian upstream. So, gradually, we are happy that we have success stories to tell just in about less than two and a half years, and while doing this with my dedicated team, we never knew that people were watching.

“So, what you have seen today is a message that the Nigerian society is watching and that the award will further serve to propel us to higher service in the service of the Federal Republic of Nigeria.”

Komolafe said the NUPRC had rolled out over 17 regulations with the objective of interpreting the PIA.

These legislations, he said, function as tools to guarantee industrial actions are clear and predictable in contrast to the pre-PIA regime.

The NUPRC boss added that the oil sector is currently in the post-PIA regime, characterised by stability and an allure for investment confidence.