Oil

Technology is Central to Enabling a Dynamic Vibrant Industry- Komolafe

Engr. Gbenga Komolafe, Chief Executive of NUPRC

…Commission embraces technology in its regulatory operations to enhance service delivery, improve turnaround time and rejig its business process.

…Nigeria crossed 1.8 MMBOPD mark on peak production in July with average production hovering at 1.78 MMBOPD

-Felix Douglas

Engr. Gbenga Komolafe, Commission Chief Executive of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said in his goodwill message at the Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) that the event has proven to be a leading light amongst industry events in fostering discourse on oil and gas matters and promoting engagements on contemporary energy issues.

There is no gainsaying that SPE is a global community of engineers, scientists and related energy professionals who have contributed in no small measure to the body of knowledge and the advancement of the oil and gas industry and growth of the national economy.

According to Engr. Komolafe, “times indeed have changed; however, the core values and focus of this illustrious association has remained intact. From the times of rudimentary tools, techniques and methods employed by geoscientists and engineers in the 1970s to the advanced suites of engineering  modelling software powered by complex computer algorithms, machine learning and artificial intelligence today, our petroleum engineers have continued to add value. SPE has come of age as a contemporary industry association of global reckoning. I charge us all to continue to deliver real solutions for the profession and industry in the years to come.”

Engr. Komolafe pointed out that the theme of the event, “Building a Sustainable Energy Future: Leveraging Technology, Supply Chain, Human Resources and Policy,” captures the critical elements that must converge for the upstream sector to remain viable and aligned with global trends. NUPRC sees the theme not as a future aspiration but as a present mandate.

As the upstream industry regulator, responsibility goes beyond compliance. It is focused on enabling a stable, efficient, and forward-looking upstream sector, one that balances the imperatives of energy security, environmental responsibility, and economic sustainability, Engr. Komolafe added.

Technology is central to enabling a dynamic and vibrant industry.

“Today, we are witnessing a shift in exploration, development and production methods anchored on technological transformation. At the Commission, we are promoting technology adaptation and sanctioning novel technologies in all areas of E&P – from traditional operations to innovative approaches for decarbonisation and emission reduction.”

The NUPRC Chief Executive said the Commission has embraced technology in its regulatory operations to enhance service delivery, improve turnaround time and rejig its business process. These are not just technical upgrades; they are part of our broader effort to entrench transparency, promote accountability and reduce costs – all geared towards enabling industry growth and vitality.

He stated further that the Commission recognises that a reliable and vibrant supply chain is critical for reducing lead times, lowering costs, and strengthening national capacity. He added that NUPRC has taken deliberate steps to create a regulatory environment that supports the growth of service companies, both international and indigenous.

“Our approach to regulatory enablement is geared towards domestication of technology, promoting local manufacturing, and enhancing overall supply chain resilience.”

“Human capital remains the most valuable asset of our industry. The Commission continues to collaborate with institutions, professional bodies, and training providers to enhance skills development, promote technical excellence, and ensure that our workforce is prepared for the challenges of a low-carbon future. We therefore charge SPE and other industry associations to accept the challenge of manpower and contribute to repositioning the industry through targeted capacity-building and our engagement with young professionals, in consideration of the fast-evolving global energy landscape.”

On the aspect of policy and regulations, the NUPRC Chief Executive was of the view that since the enactment of the Petroleum Industry Act, 2021 (PIA), the Commission has so far gazetted twenty-one key regulations, with others at various phases of development. These regulations provide the clarity required to support investment, streamline administration, and align upstream operations with national and global priorities.

Engr. Komolafe highlighted some regulations that bear directly on the theme of the conference, including: the upstream petroleum measurement regulations that promote transparency and accountability through technology deployment for accurate production measurement.

The gas flaring, venting and methane emissions regulations which directly support sustainability by tackling emissions and entrenching decarbonisation.

He also spoke about Host Community Development Regulations which enhance social inclusion and local participation in the energy value chain.

The domestic gas delivery obligation regulations which improve energy access and strengthen the local supply chain including upstream petroleum safety regulations which ensure safe operations and workforce protection for the industry were mentioned.

The Commission Chief Executive reiterated that decommissioning and abandonment regulations set clear standards for responsible end-of-life asset management.

These instruments demonstrate the Commission’s commitment to creating a regulatory environment that fosters innovation, secures long-term value, and ensures the responsible stewardship of Nigeria’s upstream resources.

Beyond regulation, the Commission is implementing core initiatives to drive positive industry actions and imperatives.

The Commission assembled industry practitioners to deliberate on a workable strategy to foster cluster development in the shallow and deepwater. Through an industry-wide implementation vehicle, this will evolve policy frameworks and operational mechanisms to valorise stranded or marginally economic oil and gas resources through joint development strategies.

According to Komolafe, the Commission is pursuing the Project 1 MMBOPD incremental initiative with modest gains recorded owing to the multi-stakeholder collaborative approach adopted.

At present, NUPRC is glad to report that the country crossed 1.8 MMBOPD mark on peak production in July with average production hovering at 1.78 MMBOPD. As part of its commitment towards sustainable production, the Commission is optimising the Maximum Efficient Rate (MER) framework, addressing produced water management, and aligning operational shutdowns and turnaround maintenance schedules to ensure minimal production disruptions. Given the above and with the concerted efforts of all, the presidential mandate on production increase is well within reach.

On another breadth, the NUPRC is implementing the upstream oil and gas decarbonisation and sustainability blueprint anchored on seven critical pillars to signal direction for the industry sustainability.

NUPRC approach is to future-proof the upstream sector and position it for investment attractiveness, sustained funding, and global competitiveness.

Komolafe urged operators to collaborate with the Commission as it incorporates decarbonisation measures in field development, facility engineering, and production operations to accrue the afore-mentioned benefits.

The Commission boss acknowledged that building a sustainable energy future will demand trade-offs, innovation, and coordinated effort.

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