Concerns Mount Over Nigerian Upstream Petroleum Sector

RALD NEWS MEDIA Report: Concerns Mount Over Nigerian Upstream Petroleum Sector

Chief Executive Officer
Gbenga Komolafe

In a recent development, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has voiced its unease regarding a noticeable decline in crude oil production and a conspicuous lack of investment in the nation's oil sector. Gbenga Komolafe, the Chief Executive of NUPRC, expressed these apprehensions during a meeting with Felix Ogbe, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), held at the NUPRC office this Tuesday.

Komolafe pointed out that the Nigerian upstream sector is currently facing substantial pressure due to diminishing crude oil production and a notable absence of significant investments in recent years. He emphasized the evolving global energy landscape, highlighting the emergence of several new oil-producing countries, intensifying competition for investment capital. In response to these challenges, he stressed the imperative need for strategic measures to establish an investor-friendly environment in Nigeria.

The NUPRC CEO underscored the significance of collaborative efforts to eliminate entry barriers for investment, stating, "We need to work together to lower barriers and do everything possible to motivate investment." He assured that NUPRC would closely collaborate with NCDMB to implement planned programs for 2024.

Felix Ogbe of NCDMB emphasized the necessity of teamwork and partnerships among various agencies under the Ministry of Petroleum Resources to sustain the growth of the Nigerian oil and gas industry. He highlighted that collaboration would create an environment conducive to attracting investments and new projects, contributing to job creation and addressing security concerns.

Ogbe proposed the organization of workshops to address concerns raised by investors hindering investments and new projects. He emphasized that the flourishing of projects and investments in the oil and gas sector is vital for local content development. Additionally, he acknowledged the impact of international oil and gas companies' investment decisions on their Return on Investments and stressed the importance of addressing these factors.

Moreover, Ogbe visited the National Insurance Commission and pledged close collaboration with NAICOM to review and operationalize insurance services regulations jointly issued by both agencies in June 2022. The objective is to encourage Nigerian oil and gas companies to patronize local insurance firms, thereby supporting the growth of the domestic insurance sector.