NUPRC highlights benefits of optimal oil, gas production for revenue generation
January 27, 2023178 views0 comments
By Innocent Obasi
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has emphasized the need for accurate crude oil and natural gas production to boost revenue generation in line with the Petroleum Industry Act (PIA) 2021.
NUPRC made this known in a statement released by Gbenga Komolafe, the commission’s chief executive, at the opening of its two-day workshop on production determination, accounting and reconciliation for crude oil, natural gas and condensate,held in Abuja.
Enorense Amadasu, deputy director, development and production, who represented Komolafe at the event, said the workshop was aimed at sensitising the oil stakeholders on the statutory requirements on oil production.
The commission’s chief executive noted that accurate crude production across the hydrocarbon value chain is a major thing to consider to achieve optimal revenue generation.
He added that one of the major reasons for the formation of the workshop is to discuss modalities and NUPRC’s requirements for production verification in line with the provisions of the Petroleum Industry Act (PIA) 2021, and obtain industry’s feedback/input on NUPRC’s requirements.
Also speaking at the event, Idris Abdurahman, deputy manager, crude oil accounting, crude oil terminal operation provided an overview of NUPRC’s statutory mandate and PIA’s provisions.
Abdurahman noted that the upstream sector as defined by Section 318 of the PIA 2021 covered exploration, production and operations of crude oil and natural gas.
“Our major focus is on business continuity and low cost of production, accurate measurement and timely payment of royalty revenue security to the government.
“We also focus on uninterrupted supply of crude oil and natural gas to the domestic market for energy security of the nation, including safety, health and environment,” he said.
He stated the PIA 2021 also mandated the NUPRC to ensure end-to-end production accounting and certification from Wellhead to terminal.
In addition, he mentioned that it allocated petroleum production quotes for the purpose of curtailing export of petroleum in conjunction with NNPC Limited pursuant to regulation.
Abdurahman said section 241 of the PIA provided that there shall be a levy upon the profits of any company engaged in upstream petroleum operations in relation to crude oil, adding that a tax to be known as hydrocarbon tax which shall be charged is currently being assessed.