Spread the love
April 23, 2024

NUPRC underscores need for optimal oil, gas production, revenue

Spread the love

By Emmanuella Anokam

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has underscored the need for accurate crude oil and natural gas production and revenue generation in line with the Petroleum Industry Act (PIA) 2021.

Mr Gbenga Komolafe, Commission Chief Executive, NUPRC, made this known on Thursday in Abuja at the opening of its Two-Day Workshop on Production Determination, Accounting and Reconciliation for Crude Oil, Natural Gas and Condensate.

Komolafe, represented by Mr Enorense Amadasu, Deputy Director, Development and Production said the workshop was aimed at sensitising the oil stakeholders on the statutory requirements on oil production.

He said the workshop would discuss modalities and NUPRC’s requirements for production verification in line with the provisions of the PIA 2021, then obtain industry’s feedback/input on NUPRC’s requirements.

He emphasised on the importance of accurate crude production across the hydrocarbon value chain for optimal revenue generation.

In an overview, Mr Idris Abdurahman, Deputy Manager, Crude Oil Accounting, Crude Oil Terminal Operation dwelt on NUPRC’s statutory mandate and PIA’s provisions.

Abdurahman explained 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 government.

“We also focus on uninterrupted supply of crude oil and natural gas to domestic market for energy security of the nation, including safety, health and environment,” he said.

He said the PIA 2021 also mandated the NUPRC to ensure end-to-end production accounting and certification from Well head to terminal.

He further said that it allocated petroleum production quotes for the purpose of curtailing export of petroleum in conjunction with NNPC Limited pursuant to regulation.

He said section 241 of the PIA provided that there shall be levy upon the profits of any company engaged in upstream petroleum operations in relation to crude oil, a Tax to be known as Hydrocarbon Tax which shall be charged and assessed.

“Section 262(1) provides that subject to this Act in relation to any accounting period, all revenue of a company for that period shall be the value of any chargeable oil adjusted to the measurement points.

“This shall be based on the proceeds of chargeable oil sold by the company, and value of all chargeable oil disposed by the company. (NAN)(www.nannews.ng)

Edited by Isaac Aregbesola

error: Content is protected !!