Buhari Orders NUPRC To Take Control Of Crude Oil Export Terminal Supervision

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been ordered by the government to assume control of all of the nation's crude oil export ports.

The much-discussed overlap of responsibilities between the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was also finally addressed by the presidency.

President Muhammadu Buhari, who also serves as the Minister of Petroleum Resources, specifically instructed the NMDPRA to hand off any activities related to regulatory work at crude oil export terminals in Nigeria in a letter to the agencies and copied the international oil companies (IOCs), as seen by THISDAY.

Many international operators recently asked for a synchronisation in the regulatory actions between both oil sector authorities due to their concern over the numerous issues the Nigerian oil and gas industry is currently facing as a result of the overlap, including oil theft.

During a CEO Roundtable on energy at the recently finished sixth Nigerian International Energy Summit (NIES), which was held in Abuja, the stakeholders, which included the International Oil Companies (IOCs) and Nigerian independent oil and gas producers, spoke in unanimity.

They maintained that the overlap produced by the two major oil industry organisations' misalignment had increased operational risks for them and deterred outside investment in the sector.

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

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

Additionally, NUPRC Chief Executive Gbenga Komolafe reiterated the operators' viewpoint during a fireside chat session at the event, noting that the sector has been concerned about regulatory overlaps between NUPRC and NMDPRA.

“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.

However, the president asked the NMDPRA to immediately comply with a previous Senate Resolution on the topic by leaving the terminals in the formal message to the Minister of State, Ministry of Petroleum Resources, the Commission's Chief Executive, and the Authority head.

“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 requested input on how the directives were being carried out, asking the secretary of state to get back to him with a report 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.