- He emphasized that the restoration of investors’ confidence and the establishment of stability and predictability in the sector have significantly impacted the industry
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reports a reversal in the investment decline in the oil and gas upstream sector, as stated by Gbenga Komolafe, the CEO of the commission.
Komolafe mentioned the country’s substantial capital expenditure (capex) over the past two and a half years, attributing it to the implementation of the Petroleum Industry Act (PIA).
He emphasized that the restoration of investors’ confidence and the establishment of stability and predictability in the sector have significantly impacted the industry.
Komolafe highlighted the introduction of Nigeria’s first crude oil measurement regulation, expected to save billions of dollars, and noted the sector’s growth with approximately 30 rigs, compared to 11 in 2011, credited to increased investor interest.
“That is a 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.
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