NUPRC under Kolawole as a synonym for a regulatory agency

In the high-stakes world of Nigeria’s oil and gas industry, Engr. Gbenga Olu Komolafe is juggling two critical roles with ease. On one hand, he is demonstrating exceptional leadership as the chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), while on the other hand, he is driving economic and national development.

Komolafe’s leadership has been instrumental in shaping the country’s oil and gas landscape, ensuring compliance with petroleum laws and guidelines. His vision for the NUPRC is built on a foundation of transparency, accountability, and sustainable development. As he steers the NUPRC towards excellence, Komolafe is also driving initiatives that boost production and revenue.

The NUPRC is saddled with the monumental task of supervising all upstream petroleum operations in the country. This involves monitoring operations to ensure they align with national goals, including gas flare elimination, domestic gas delivery, and domestic crude oil supply obligations. The agency must also ensure that health, safety, and environmental regulations meet national and international best practices.

Additionally, the NUPRC is responsible for maintaining records on upstream petroleum operations, advising the government on technical matters and public policies, and processing applications for leases, licenses, and permits. The agency must also ensure timely and accurate payments of rents, royalties, and other revenues due to the government.

These tasks are daunting, but Engr. Gbenga Olu Komolafe, the chief executive of NUPRC, is rising to the challenge. With his years of experience and expertise in the oil and gas sector, Komolafe is bringing a unique blend of accountability, dedication, and innovation to the role. His strategic foresight and objectivity have led to the initiation of various groundbreaking policies, including the electronic tracking of petroleum product distribution nationwide. Komolafe’s exceptional leadership is setting a new standard for regulatory excellence in Nigeria’s upstream petroleum sector.

 Komolafe is a trailblazer, making significant strides as a member of the Nigerian Bar Association, Fellow of Nigerian Society of Engineers, and Council of Registered Engineers of Nigeria (COREN). As a strategic leader, he has initiated policies that have transformed the Upstream Petroleum Regulatory Commission. He introduced electronic tracking of petroleum product distribution nationwide, ensuring transparency and accountability in the sector.

Komolafe also implemented institutional process studies and designs to curb revenue leakages, achieving optimum national productivity and facilitating optimum revenue for the Nigerian federation. His leadership has been acknowledged by the Nigeria Extractive Industries Transparency Initiative (NEITI) for promoting transparency and accountability in the sector.

As a result-oriented officer, Komolafe’s coordinated implementation of strategic sales and retail plans has been recognized globally, bringing distinction and pride to Nigeria’s oil sector. He formulated policies that effectively bridged the supply gap in petroleum products to inner parts of the country, ensuring equalized price management nationwide. Furthermore, Komolafe played a crucial role in formulating 17 regulations that ensure certainty and predictability in the upstream industry, creating value for Nigeria’s hydrocarbon resources through increased productivity and revenue.

As a silent, assiduous, and dedicated leader, Komolafe’s confidence, capacity, and assurance have attracted investors into the industry, building reciprocal confidence and driving growth in Nigeria’s oil and gas sector. His dynamic stewardship and outstanding leadership have led to the implementation of key reforms aimed at enhancing efficiency, boosting investment, and strengthening regulatory oversight in the industry.

It is in recognition of this and other significant contributions to Nigeria’s upstream Oil and Gas Sector that the Agency was awarded the Regulator of the Year Award for Exemplary Oversight in Nigeria’s Oil and Gas Sector. Komolafe’s leadership and supervisory role has led to the enforcement of strict compliance and adherence to Crude Oil Supply Obligations for local refineries by oil Exploration and Production companies and also the denial of export permits for crude oil cargoes intended for domestic refining where an oil company fails to meet their local crude supply commitments. These measures reiterate the illegality of diverting crude oil meant for local refineries.

As a passionate and action-oriented leader, he has taken significant regulatory measures to ensure compliance with the Domestic Crude Supply Obligation, as outlined in Section 109 of the Petroleum Industry Act 2021. This includes developing the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, creating a framework and procedure guide for implementation.

Under his leadership, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has achieved impressive recognition, including the 2024 Overall Best Performing Parastatal SERVICOM Unit (PSU) Award. Komolafe’s innovative initiatives have also earned the agency honors as the Best Federal Ministry, Department and Agency (MDA) in Digital Transformation, as well as a Presidential recognition.

Komolafe has successfully converted 40 Oil Prospecting Licenses (OPLs) and Petroleum Mining Licenses (PMLs) to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases. Additionally, he has incorporated 74 Host Community Development Trusts (HCDT), promoting a sense of ownership and lasting peace within host communities. Through his pragmatic leadership style, Komolafe has automated various processes, ensuring operational efficiency and enhancing the effective regulation of the upstream sector. His efforts have also boosted national oil and gas production, aligning with the agency’s statutory mandate.

Another major breakthrough is reducing the unit cost of oil production per barrel, which he believes will optimize revenue for the federation from Nigeria’s hydrocarbon resources. Komolafe’s commitment to eradicating corruption is evident in his collaboration with organizations like PwC. He has also formed strategic partnerships with companies like Slumberger, leading to improved oil production and operational efficiency.

Komolafe’s focus is on achieving a revenue target of over N15 trillion and increasing crude oil production to 2.7 million barrels per day by 2027, primarily through condensate production. By producing condensate, a lighter and more volatile hydrocarbon, Nigeria can maintain its OPEC quota of 1.5 million barrels of crude. To achieve this goal, Komolafe is working with stakeholders to ensure sustainable security improvements around oil production and transportation sites. His efforts have demonstrated his capacity to achieve a higher quota, and he is likely to succeed in his endeavours.

The NUPRC’s remarkable transformation under Komolafe’s leadership has earned it a reputation as a model regulatory agency. Its impact on Nigeria’s oil and gas sector has been profound, driving growth, investment, and transparency. As the agency continues to evolve and adapt to the changing needs of the industry, one thing is clear: the NUPRC under Engr. Gbenga Komolafe is a synonym for regulatory excellence.

In the years to come, the NUPRC will undoubtedly face new challenges and opportunities. But with Komolafe at the helm, the agency is well-equipped to navigate the complexities of the oil and gas sector. As a regulatory agency, the NUPRC has set a new standard for excellence, and its impact will be felt for generations to come.

Orinya is an oil and gas expert writing from University of Dundee.