April 21, 2024

OTC 2023: NUPRC to organise E&P international funding roadshow to raise capital for marginal fields’ awardees, others

Oredola Adeola with agency reporters


The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has restated the plan to organise an Exploration and Production(E&P) international Financing Roadshow to attract financiers, investment bankers, private equities, and multi-lateral institutional investors key into opportunities available within the recent PPL awards, the on-going National Gas Flare Commercialization Programme, as well as the on-going Mini-bid award.
Engr. Gbenga Komolafe, Chief Executive of NUPRC made this known while speaking with newsmen at the ongoing 2023 Offshore Technology Conference (OTC) in Houston, Texas, United States on Monday.
The financing roadshow according to him is in recognition of the funding challenges facing some of the awardees of the 2020 Marginal Field Bid Round licences.
He said, “The initiative is to showcase the high-value quick win opportunities available to investors in the recent PPL awards, the ongoing National Gas Flare Commercialisation Programme, as well as the ongoing mini-bid awards,” he added.
The CCE further stated that NURPRC is also planning a production-based lending engagement that would help them source needed capital to commence full field development toward hitting first oil. This, according to him will ease challenges in the sector.
Komolafe said that the engagement would be between the Commission, Petroleum Production Licence (PPL) Awardees, Exploration and Production (E&P) service providers and Banks.

He said, ”It is to provide platforms for strategic partnership and alliance between the awardees and the service providers for Well Re-entry and drilling services.

“The arrangement is to be offered on service fee recoverable by the service providers from production to be attached.

Komolafe said that the Commission developed a Corporate Governance Framework for upstream petroleum operations.

According to him, this is to create clarity and restore confidence in the industry, which is very important.

”Also, the framework is to enhance sustainability, environmental, and corporate governance requirements and to facilitate capital attraction by investors for the optimal and efficient development of the PPLs and other assets.

The Commission’s CE also confirmed the plan to establish an ‘African forum of regulators’, to benchmark and standardise regulatory framework in every country within Africa.
Engr. Komolafe also restated the commitment of the Nigerian Government towards achieving carbon neutrality, ending energy poverty, and driving economic growth in the country.

He said, “The Nigerian Government is already fine-tuning its policies and regulations to ensure it meets global carbon neutrality target.

Komolafe said that the Nigerian government was firmly working toward its commitment at the United Nations Climate Change Conference (COP26) in Glasgow, UK, to cut its carbon emission to net zero by 2060.

“Nigeria has outlined its energy transition plan and for us as a regulatory commission, we are in line with every plan to ensure a smooth transition.

“Right now, the commission has created a department to handle its decarbonisation process.

“This is a way to ensure it gets carbon credit and follows all global best practices and benchmarks,” he said.

In an update on Nigerian Gas Flare Commercialisation Programme (NGFCP), Komolafe affirmed that the process was progressing well.

He said that very soon the commission would announce the names of the successful bidders.

He noted that this was coming at a time of energy crisis and transition and on the backdrop of the government’s decade of gas policy.

He said that the development seeks to tame decades of gas flaring in the oil-producing region and enable the federation to generate billions of dollars in investment and signature bonuses.

He commended the Petroleum Technology Association of Nigeria (PETAN) leadership for leading a quality delegation to the 2023 OTC.

He urged them to sustain the tempo and continue the development of indigenous capabilities in the oil and gas sector.

He said that PETAN was indeed doing the nation proud by extending its capacities to other frontiers in Africa.