Despite the global clamour for decarbonization and energy transition, oil and gas remain relevant in the global energy mix, an official said.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it has thrown its doors open to potential investors who wish to collaborate in building partnerships and unlocking the full potential of Nigeria's upstream petroleum sector.
The NUPRC Chief Executive, Gbenga Komolafe, disclosed this in a statement on Friday.
Mr Komolafe said the commission is leveraging the Petroleum Industry Act (PIA), 2021 which has enhanced the business landscape in Nigeria's petroleum industry to provide a more transparent, efficient and investment-friendly regulatory framework.
The statement said that Mr Komolafe gave the indication at the Nigerian Oil and Gas Opportunity Fair (NOGOF 2023), held in Yenagoa, Bayelsa State.
He said the renewed disposition reflects the nation's readiness to attract local and international investors in the oil and gas space.
"In line with the provisions of the PIA, the commission has developed priority regulations to reinforce the meaning to the intent of the Act, hence creating a predictable regulatory environment for would-be investors.
"So far five (5) priority regulations have been gazetted, while thirteen (13) others have been submitted to the Ministry of Justice for review. Eight (8) are at various stages of development," he said.
He said Nigeria's role as a major player in the global oil and gas industry is certainly not in doubt, as we are currently the highest oil producer in Africa and the second highest in terms of proven oil reserves, with huge growth potential.
As of January 2023, he said Nigeria boasts of 36.966 billion barrels of oil and condensate reserves and 208.83 trillion cubic feet of natural gas reserves, opening a large opportunity for investments in the upstream oil and gas sector.
"Despite the global clamour for decarbonization and energy transition, oil and gas remain relevant in the global energy mix, to guarantee energy security for our teaming population.
"In order to deliver on her commitments towards reduction of carbon footprints, Nigeria has adopted gas as a transition fuel and expects to significantly increase gas consumption during "the Decade of Gas" declared by the President, Muhammadu Buhari," he said.
He explained that the adoption of natural gas as a transition fuel is a boost for Nigeria which has over 208 trillion cubic feet (TCF) of gas reserves that can be harnessed to help the country's transition to Net Zero by 2060 while driving economic growth and development, thereby simultaneously tackling energy poverty and meeting the climate ambition.
Mr Komolafe said the commission has intensified efforts to grow gas reserves, boost production and eliminate routine gas flares in all upstream operations across the value chain, while also dealing with methane capture and other fugitive gas emissions.
He said the significance of this is that more gas would be available for domestic utilization as Liquefied Petroleum Gas (LPG), feedstock for power generation plants, fertilizer plants and petrochemicals to mention but a few.
"Each of these areas shows that gas would truly be the catalyst and fuel for industrialisation as well as provide unique entry points for willing investors and opportunities to build capacity locally.
"The commission as the upstream petroleum industry regulator has embarked on the development of a regulatory framework for the carbon-pricing system, to make businesses pay for their emissions and incentivize emission reductions through carbon credits," he said.
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He said a new department called "Energy transition and carbon monetisation" has been created in the commission to coordinate the drive towards energy transition in the Nigeria oil and gas sector.
"The new department will drive the focussed implementation of a robust regulatory framework for decarbonisation of upstream operations, introduce clean mechanisms in field development, mitigate the impact of energy transition and ensure sustained investments in Upstream operations whilst improving the environmental credentials of oil and gas.
"It is our hope that in months to come, we should be able to share the vital lessons from the Nigerian transition success story to the global community."
He added that the commission since inception has concluded and commenced various initiatives and programmes to create investment opportunities and enhance the development of the upstream oil and gas industry in Nigeria.
