NUPRC mitigates job losses as CIOs divest

 

The Director General of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has allayed fears of job losses among workers of international oil companies who are leaving Nigeria or divesting from onshore to offshore.

Komolafe was speaking at the Energy and Labour Summit 2024, currently underway in Abuja, organised by the Petroleum and Natural Gas Senior Staff Association of Nigeria.

The NUPRC chief said the commission would safeguard jobs and ensure the transfer of skills from IOCs to indigenous companies that will acquire assets previously owned by foreign investors.

“With regard to the workforce in this transitional era, the commission is committed to safeguarding jobs and ensuring the transfer of skills from CIOs to indigenous companies,” Komolafe said.

Speaking on the mandate of the NUPRC, he stressed that the commission is creating a regulatory environment that promotes investment, fosters innovation and ensures responsible management of Nigeria’s natural resources.

According to him, a comprehensive divestment framework has been implemented to guide the divestment of assets in the upstream oil sector, focusing on technical capacity, financial soundness and legal considerations, among others.

Komolafe, represented by the Executive Commissioner for Development and Production of NUPRC, Mr. Enorense Amadasu, acknowledged that the divestment of international oil companies from Nigeria’s upstream oil and gas sector is a topic that has sparked considerable debate within the industry.

Addressing the state of the sector, the NUPRC chief discussed the implications of IOC divestment from Nigeria’s upstream oil sector, noting that the past decade has seen a marked shift in Nigeria’s oil and gas landscape, driven by global energy transition goals, financial prudence and regulatory changes.

These divestments, he added, have raised critical questions about the future of the sector.

He also underlined the crucial role of the energy sector in driving socio-economic development and the imperative of a forward-looking approach that embraces innovation, collaboration and adaptability in the face of oil price fluctuations, geopolitics and decarbonization.

“As we gather here amid unprecedented challenges and transformative opportunities, we must recognize the critical role the energy sector plays in driving socioeconomic development and prosperity,” Komolafe noted.

He argued that fluctuations in oil prices, geopolitics and the imperative of decarbonisation are factors that require a strategic and proactive approach.

He also stressed the importance of leveraging technology, diversifying energy sources, and cultivating partnerships that transcend borders and ideologies.

The PUNCH reports that the IOC, including Shell Petroleum Development Company, Nigeria Agip Oil Company, Mobil Producing Nigeria Unlimited and Equinor, are ready to divest their investments in 26 oil blocks in Nigeria to indigenous companies.

“A total of 26 blocks are proposed to be divested. These blocks have a total estimated reserve of 8.211 million barrels of oil, 2.699 million barrels of condensate, 44.11 trillion cubic feet of associated gas and 46.604 billion cubic feet of non-associated gas. This is a significant contribution to the nation’s hydrocarbon resources.

“In addition, these blocks contain P3 reserves estimated at 5,557 million barrels of oil, 1,221 million barrels of condensate, 14,296 billion cubic feet of associated gas and 13,518 billion cubic feet of non-associated gas.

“It is worth noting that a substantial portion of the P3 reserves are located in or near producing assets. This means that a competent successor could easily transform them into 2P reserves,” Komolafe said in May. [The Punch]

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