Buhari Directs NUPRC to Take Over Supervision of All Crude Oil Export Terminals

The presidency has directed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take over the supervision of all crude oil export terminals in the country.
Additionally, the presidency also, finally waded into the much-talked-about overlap of functions between the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In a letter written to the agencies and copied international oil companies (IOCs) by President Muhammadu Buhari who also doubles as the Minister of Petroleum Resources, as seen by THISDAY, the president specifically directed the NMDPRA to hands off any activities that have to do with regulatory work at crude oil export terminals in Nigeria.

Worried by the many challenges confronting the Nigerian oil and gas industry resulting from the overlap, including oil theft, many international operators had recently called for an alignment in regulatory activities between both oil industry regulators.

The stakeholders comprising the International Oil Companies (IOCs) and Nigerian independent oil and gas producers, spoke in unison during a CEO Roundtable on energy at the recently concluded sixth Nigerian International Energy Summit (NIES) which held in Abuja.

They had argued that the misalignment between the two key agencies of the oil industry had created overlap that had caused them operational risks and discouraged investment in the industry.

Some panellists at the event included: The Deputy Managing Director, Deepwater, TotalEnergies E&P Nigeria, Mr. Victor Bandele; Chairman of the Oil Producers Trade Section (OPTS), Chevron Nigeria Limited, Mr. Rick Kennedy; and Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor.

Others were the Managing Director, Nigeria Liquefied Natural Gas Limited (NLNG), Dr. Philip Mshelbila; Executive Director, ExxonMobil Nigeria, Mr. Oladotun Isiaka; Chief Operating Officer, Oando Energy Resources Limited, Dr. Alex Irune, and Executive Chairman of AA Holdings, Mr. Austin Avuru.

Also, during a fireside chat session at the event, NUPRC Chief Executive, Gbenga Komolafe, confirmed the position of the operators, saying there had been issues of regulatory overlaps between NUPRC and NMDPRA which had been a matter of concern for the industry.

“Yes, we recognise the fact that there have been issues of regulatory overlap between the two regulators and that have been a matter of concern for the industry. Of course, it (PIA) is a new law and as pioneers, we will continue to implement the law and continue to take notes of the challenges in the course of the Implementation,” he stated.

But in the official communication to the Minister of State, Ministry of Petroleum Resources, the Commission Chief Executive and the Authority boss, the president instructed the NMDPRA to immediately comply with an earlier Senate Resolution on the matter exit the terminals.

“The above mentioned subject matter and, the relevant correspondence (Ref: NUPRC/1195/Vol. 1/36) refers: I write to inform you that Mr. president has directed immediate compliance with the resolution NASS/9S/R/03/934 of the Senate that NUPRC is the sole and only regulatory entity to regulate and monitor the activities of all existing crude oil export terminals in Nigeria, subsists in compliance with section 7ee of the PIA(2021),” part of the letter read.

It added: “(He has also) directed that the exercise of any regulatory role by the NMDPRA on any existing crude oil export terminals established prior to the effective date of the PIA should cease immediately.”

The president also sought feedback on the implementation of the instructions, asking the minister of state to report back to him in two weeks.

 “And (he has) directed the Honourable Minister of State for Petroleum Resources to ensure immediate compliance and report back within 14 days that the resolution as stipulated in (a) above is being adhered to by the NUPRC, NMDPRA, NNPCL, FMITI, industry players and relevant MDAs,” the letter stated.

Emmanuel Addeh

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