Concerns over post-divestment challenges as NUPRC seeks $2.5b gas investment

Stakeholders in the Nigeria oil and gas sector, yesterday, raised concerns over post-divestment issues in the sector as Nigerian Upstream Petroleum Regulatory Commission (NUPRC) seeks $2.5 billion gas investment.

Speaking at the Nigerian International Energy Summit, players in the upstream sector insisted that the country is underutilising the potential in the deepwater sub-sector.

The Commission Chief Executive of NUPRC, Gbenga Komolafe, noted the potential of the Nigeria Gas Flare Commercialisation Programme (NGFCP) to unlock $2.5 billion in investment.

He said this would generate significant revenue and create jobs while enhancing Nigeria’s transition to cleaner energy. Komolafe also reaffirmed NUPRC’s commitment to community development, revealing that 154 Host Community Development Trusts (HCDTs) have been established under the Petroleum Industry Act (PIA) 2021, with contributions exceeding N78.8 billion and $122 million for local projects.

He emphasised the need for a structured approach to managing post-divestment oil assets as stakeholders urged operators to focus on optimising production and extending asset lifespans through continual investment and technological advancement.

Komolafe stressed the importance of financial and technical due diligence in the divestment process, saying new entrants in the sector must demonstrate operational capability to ensure asset sustainability.

Stakeholders at the meeting said Nigeria has a lot of untapped opportunities in offshore fields, stressing that some reservoirs remain underutilised despite their world-class potential. They advocated a phased development approach that leverages existing infrastructure in partnership among companies.