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FG says it is determined to finally end gas flaring 

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*** PIA is a lifetime strategy that promises to bring renewed hope, says Komolafe

The Federal Government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Health, Safety, Environment and Community of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has expressed determination to finally put an to gas flaring practices.

This it said will for the last time guarantee environmental sanity in the oil and gas value chain in the Country. 

Executive Director, Health, Safety, Environment and Community of the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA, Capt. John Tonlagha said ‘Regulations and Guidelines’ have been developed in accordance with the PIA which are in the final stages of of approvals. 

He spoke at the official commissioning of HOSTCOM’s Abuja Liaison Office and end of year community sensitization on the PIA

Speaking to the topic; the Role of NMDPRA on Zero Gas Flare and the Utilization of Environmental Remediation Fund as Contained in the Petroleum Industry Act (PIA)’ 

He said the objective of the Gas Revolution which underpins the 7 Big Win is intended to transform Nigeria into an industrialized nation with gas playing a major role by spurring particular enabling policies to launch the gas industry. 

“The Nigerian Gas Master Plan (NGMP) is the blueprint designed to address growth in the domestic gas market as well as supply chains to ensure availability and affordability for users, infrastructure development, long-term supply security, as well as robust legal, regulatory, and fiscal policies. 

“Its actualization is expected to stimulate economic growth, further improve Nigeria’s energy mix. drive investments, and provide the much-needed jobs for our citizens in the country. 

“Thus, the development of gas infrastructure like the construction of the 61 4km Ajaokuta-Kaduna-Kano (AKK) gas pipeline, as well as increasing domestic utilization of LPG and CNG, commercializing gas flares under the National Gas Flare Commercialization Program (NGFCP), developing industrial gas markets, increasing Gas to Power, the National Domestic Gas Supply and Pricing Policy, the Nigerian National Gas Policy, the Nationg| Gas Expansion Programme and the Auto-gas policy. 

“The effort towards establishing Train 7 by the Nigerian Liquefied in the reduction of gas flaring in Nigeria is also a laudable achievement. 

“These are all ways the FGN has sought or attempted ta articulate its desired flare down policy as well as its keenness in strengthening the gas-to-power nexus in the country under the Gas Revolution.”

NUPRC chief executive, Engr. Gbenga Komolafe, commended HOSTCOM’s drive towards ensuring that host communities are fully involved in the actualization of the gains of the Petroleum Industry Act (PIA) 2021 while enhancing peaceful and harmonious coexistence between operators and their hosts. 

Speaking to the topic; ‘Host Community Development Trust Milestones Implementation Achievments: A tool for possible eradication of vandalism and Crude oil theft at the official commissioning of the HOSTCOM Liaison office/end of year Community sensitization on the Petroleum Industry Act (PIA) he said the commission has continued to prioritize those aspects regarding the integration and well-being of host communities in its operational considerations to ensure fairness and justice.

“Evidence of our commitment to this objective can be seen in the tremendous efforts made by the Commission within the first six months of its inception in generating ideas, formulating proposals, and engaging stakeholders towards formulating a navigational aid for the implementation of the Host Community Development Trust Fund (HCDT), in line with the provisions of section 235 of the PIA, 2021.

“You will recall that in the seventh month of our stewardship, (June 28, 2022 precisely) the Commission unveiled the Nigeria Upstream Host Communities Development Regulation and Procedure Guide”

He indicated that the PIA is a lifetime strategy that promises to bring renewed hope by ushering in far-reaching reforms backed by proper implementation strategies,  

He spoke on the topic, Host Community Development Trust Milestones Implementation Achievments: A tool for possible eradication of Vandalism and Crude oil theft at the official commissioning of the HOSTCOM Liaison office /end of year Community sensitization on on the Petroleum Industry Act (PIA) in Abuja at the weekend

He said at the Commission they were passionate about successfully driving the implementation process. 

‘Armed with the provisions of the PIA-HCDT framework, the Commission has indeed moved ahead with the implementation of the requirements of the relevant provisions to deliver on its mandate, as seen by major and critical milestones achieved within a short timeframe. 

“The effect of these strategies, which are aimed at ensuring the effective implementation of the provisions, would become obvious in the coming months.” He listed Some of the Commission’s activities to include

Gazetting, and publication of the Nigeria Upstream Host Communities Development Regulation (NUHCDR, 2022), in July, 2022 after series of engagements with industry stakeholders, engaging and collaborating with relevant agencies, such as the Corporate Affairs Commission (CAC), to facilitate the incorporation of the Trusts; for example, the Department of State Security (DSS), to facilitate the verification of the character and integrity of BolT members; the National Boundary Commission (NBC), to ensure the inclusion of littoral communities to a Settlor’s area of operations based on sound science, to mention just a few. 

According to him, they have been able to set up the Implementation team currently driving the digitization of the application process; the Host Community Development Team to handle the process of implementation and attendant fallouts; and the Compliance and Enforcement Team for HCD Implementation, to ensure strict compliance by all

stakeholders including Settlors, and Host Communities, among others. 

He said they have also carried out

Nigerian Upstream Host Communities Development Guidelines (draft stage), application for incorporation approval templates, and the recent move from digitization to automation of the HCD implementation process

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Oil and gas

HOSTCOM lauds NUPRC for transparency in completion of the Marginal Field Bid Round, revoked asset

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***Also, for carrying them along

The Host Communities of Nigeria producing oil and gas (HOSTCOM) has commended the Nigerian Upstream Regulatory Commission (NUPRC)’S commitment to the development of the host Communities by ensuring that they were carried along in the completion of the Marginal Field Bid Round and the revoked asset.
The National President HOSTCOM His Highness Dr. Benjamin Style Tamaranebi JP who made the commendation in a statement issued to newsmen on Saturday in Abuja said the important aspect is that Subsequently, the proceeds from the Bid round were made directly to the Federation account, amounting to N265 Billion and USD 18M in line with the core values of the Commission in August 2023 and also in accordance with the provisions of section 7 (1) of the Petroleum Industry Act (PIA) 2021.
The Marginal Fields Bid Round is a program initiated by the Nigerian government to allocate oil blocks to indigenous companies, promoting local participation and development in the sector. The program aims to, Increase oil production, Encourage indigenous participation and Foster economic growth
On the other hand, Revoked Assets refer to oil blocks or licenses that have been withdrawn or revoked from their previous holders, often due to non-performance, non-compliance, or other reasons.
These assets are then re-allocated to new companies through processes like the Marginal Fields Bid Round
The combination of the Marginal Fields Bid Round and Revoked Assets has significant implications for Nigeria’s oil and gas industry, including increased indigenous participation, improved oil production, enhanced economic growth, and encouragement of local content development and redistribution of oil blocks and licenses

Explaining further, Style indicated that the HOSTCOM was not left out in the activities
which were ongoing before the appointment of the present management team of the established Nigerian Upstream Petroleum Regulatory Commission under the leadership of the Commission Chief Executive, Engr Gbenga Komolafe.

According to Style HOSTCOM which is the umbrella body and mouth piece of the grassroots has taken stock of the activities of the Nigerian Upstream Petroleum Regulatory Commission in relation to it’s partnership with – HOSTCOM as contained in the Petroleum Industry Act 2021.
“We also want to use this medium to thank the Commission Chief Executive for the Commission’s consistence in ensuring that the Commission is proactive in every matter pertaining to the Host Communities as contained in section 234 to 257 of the Petroleum Industry Act – PIA 2021.
He said NUPRC under the leadership of Engr. Gbenga Komolafe, has achieved great strides in the Upstream sectors, which are not limited to the engagement of HOSTCOM in most of its stakeholders’ activities beginning from the formulation of the Host Communities Development Regulation No. 114 of 2022.
“Consequently, the Host Communities regulation was unveiled by the former President, His Excellency, President Muhammadu Buhari GCFR and former Federal Minister of State for Petroleum, Chief Timipre Sylva observed by all stakeholders including the Senate Committee Chairman for Host Communities, the House of Reps Committee Chairman for Host Communities and the Host Communities of Nigeria Producing Oil and Gas ably represented by the President of HOSTCOM.
“Again, the Commission has established a building in the South – South specifically Yenagoa BAYELSA STATE to bring closer to the people the settlors and Communities crisis settlement centre which ordinarily use to have its ADR centre in faraway Lagos State before now, for the expeditious settlement of Community cases with the settlors’.
“This is the first of its kind after the discovery of Oil in the early fifties. Within record time, 17 Regulations were developed, 13 gazetted with HOSTCOM Regulations prioritised in phase 1.

“One hundred and twenty two (122) HOSTCOM Host Communities Development Trusts (HCDTs) were set up to implement (3%) three per cent provision as provided in the PIA. Seventy two Trusts have been funded up to the tone of over eighty Billions naira and about one hundred and fifty Million Dollars also been remitted to Host Community’s account and likewise more than fifty HCDT’s yet to be formed.
“NUPRC initiated a partnership with IT companies to develop a digital real-time platform known as HOSTCOMPLY for managing HOSTCOM Provisions for transparency and accountability of HOSTCOM funds between settlors and trustees.
“Sensitisation on PIA HCDT’S Board of Trustees and Secretaries in all affected States is on going and the exercise is conducted by Host Community organization.

“NUPRC has set up a panel to mediate and resolve disputes among HOSTCOM and settlors also established as contained in the Host Communities Development Regulation.
K. NUPRC has cleared the doubt on the issue of divestment and has come up with templates concerning any Company that want to divest must meet up the requirements (a) plan dicommissioning and aboundornment (b) plan on environmental remediation (C) Community investment plan (d) plan to inherit liabilities of divesting Company .
“With a deep sense of responsibility, we have observed with keen interest and observed the transparency demonstrated by the Commission in the conduct and adherence to established protocols and regulations to ensure effective conduct of their practices and accountability.
“Following the reassurances of the Commission to continue to engage the Host Communities of Nigerian Producing Oil and Gas, we rate the score card of the Commission by passing a vote of Confidence on the Nigerian Upstream Petroleum Regulatory Commission and the management team ably led by the Commission Chief Executive, Engr Gbnega Komolafe for an award for its commitment to Petroleum Communities’ sustainable development and protection of their participatory rights.
“With regards to the aforementioned strides of the NUPRC for delivering within record time, we call on all meaningful stakeholders to join hands with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to facilitate the speedy implementation of the 3% OPEX which is overdue by the settlors.
“And to those settlors who have refused to set-up the Host Communities Development Board of Trustees to immediately do so.
“To allow the Communities to start enjoying their benefits of sustainable development and participatory rights as contained in the PIA 2021.
“In fact, we call on the NUPRC to List out all the settlors who have refuse to comply with the PIA 2021 or else we will have no choice than to escalate the issue of noncompliance to section 234 of the PIA 2021 and the Host Communities Development Regulation No 114 of 2022 to the President who doubles as Minister of Petroleum Resources for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to invoke the revocation of their licenses for violating the extant regulatory Laws of Nigeria and protocols of the United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM) green house gas (ghg).

He said HOSTCOM will continue to partner with the NUPRC and the present administration to ensure good working relationship with the settlors only if they comply with and implement the PIA 2021, with regards to Host Communities Development Regulation No.114 of 2022, and in adherence to all other protocols to yield sustainable development and the participatory rights of the Petroleum Communities

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Tinubu rattles oil sector, directs NNPCL to remit crude sales revenue to CBN

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President Bola Tinubu

President Bola Tinubu has directed the Nigeria National Petroleum Company Limited (NNPCL) to immediately handover details of revenue from sales of crude oil to the Central Bank of Nigeria (CBN).
Apparently, the move had sent some shock waves down the spines of some players as it is believed to be part of Tinubu’s effort aimed at monitoring revenue accruing to the Federal Government
The NNPC had over the years been solely responsible for the maintenance and control over crude oil sales after which it merely rendered accounts to the Federal Government.

It was reliably gathered that the CBN while confirming the development, said that with the Presidential directive, all receipts of payment for oil sales would now be forwarded to the CBN with immediate effect.

The new directive requires the NNPC to submit all receipts for crude oil sales to the CBN for vetting and documentation. This aims to close any potential gaps in reporting and ensure accurate records of oil revenue.

CBN Governor, Mr. Olayemi Cardoso, had earlier indicated that the collaboration with the Ministry of Finance and the NNPCL is to ensure that all foreign inflows are returned to the Central Bank.

“This coordinated effort will greatly enhance the Bank’s foreign exchange flows and contribute to the accretion of reserves,” he said.

Cardoso, who was delivering a keynote address at the launch of the Nigerian Economic Summit Group (NESG) “2024 Macroeconomic Outlook Report”, said, “The expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum product imports and the recent implementation of a market-determined exchange rate policy by the CBN.

“This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage.

“The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors.”

“We are implementing a comprehensive strategy to improve liquidity in our FX markets in the short, medium, and long term. Our focus is on addressing fundamental issues that have hindered the effective operation of our markets over the years.

“Upholding the integrity of financial markets is crucial for building confidence. With the completion of an independent forensic review, we are addressing the backlog of valid FX transactions and we remain steadfast in our commitment to decisively address any infractions and abuses,” he added.

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HOSTCOM commends NUPRC’S steadfastness in Devpt Trust Fund creation, management

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The Host Communities of Nigeria producing oil and Gas (HOSTCOM) has clarified the involvement of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in the management of the Host Community Development Trust (HCDT) which has generated unnecessary agitation within the ranks of some misinformed entities who have resorted to issuing unwarranted threats in the media recently.
National President of HOSTCOM, Highness Dr Benjamin Style Tamaranebi (JP) said the involvement of the NUPRC is purely regulatory to ensure proper implementation to the benefit of all stakeholders and nothing more.
“It is necessary to state for the umpteenth time that the NUPRC is only involved in the execution of the HCDTs to the extant prescribed in the Petroleum Industry Act 2021 and the Regulations governing the implementation of the Trust which was approved by stakeholders and gazetted by the government. 
“The Commission is not unaware of the antics of those who are not comfortable with the new regulations but would prefer the status quo for which host communities were short-changed to continue.
“It is in the light of this that we would like to make the following clarifications for the sake of the undiscerning members of the public.
“It is important, first and foremost to reiterate that the NUPRC is a regulatory body established by law to oversee the upstream petroleum sector, thus its primary objective is ensuring efficient and sustainable petroleum resource exploration and production in Nigeria. “This includes safeguarding the interests of all stakeholders, including the oil and gas host communities.

“Part of the functions of the NUPRC is to superintend and monitor the implementation of the Host Communities Development Trust as stipulated in Chapter 3 of the Petroleum Industry Act (PIA), 2021 and the Nigerian Upstream Petroleum Host Communities Regulation (NUPHCR), 2022. ”

Explaining further he said, Oil producing communities are expected to have a Board of Trustees (BoT) to superintend the HCDT as stated in section 240 through 244 of the PIA.
“It is imperative to apprise the public of the responsibilities of the respective incorporated trust which, amongst others, include the general management of the host community’s development trusts, disbursement of the capital fund (75% of the 3% annual OPEX) for the execution of host communities project and the appointment of fund managers to manage the reserve fund (20% of the 3% OPEX) as business venture (while 5% ot the 3%  OPEX is for administrative cost).

“The reason for the attacks on the Commission is the introduction of the  digital platform and implementation by OEM hostcomply, which has heated the  operators and to end the sharp practices of the oil multinationals and their cohort.
“With this HOSTCOMPLY host communities are confident and safe with their 3 % Annual OPEX without blinking eyes.

“The PIA expressly situated administrative fees in the 5 percent of the 3 percent to situate with the settlors. What the commission did was digitizing end to end administration of the HOSTCOM provision through HOSTCOMPLY and directing operators and stakeholders to subscribe to usage for transparency and avoid human interference.

“The point must be made clear that the NUPRC is not a signatory to any of the HCDT accounts rather only the settlors and the BOTs of the Host communities are signatories to the trust accounts as provided in Regulation 23 (5d) of the NUPHCR of the Commission, which is to ensure effective monitoring of the implementation and operationalisation of the HCDT process.

“It is worth noting that since the enactment of the PIA 2021, the NUPRC has been working assiduously to ensure compliance by Settlors to the provisions of the law with the overall objective of fully operationalising the trusts for the sustainable prosperity of the host communities. “This effort by the Commission has led to the incorporation of over one hundred (110) HCDTs and funding the requisite accounts for about fifty (50). 

“As the Mouth piece and Umbrella body we understand the imperativeness of safeguarding the HCDT funds for the full utilisation of the sustainable development and property of the host communities.
He callef on all stakeholders to cooporate and work with NUPRC to ensure that the host communities’ funds are efficiently and transparently managed for the benefit of the communities by working closely with the relevant leaders of the HCDT in driving positive change and development in the communities.

He commended the tireless, vibrant  Commission Chief Executive Engr Gbenga Komolafe for his pragmatic style of leadership geared towards improving the social inclusion and further make attempt to increase production beyond  OPEC quota by 2024 involving every critical stakeholders on board.

“We observed with keen interest how operators are doing everything  possible to frustrate genuine efforts by sponsoring uninformed persons against seamless flow 3% annual OPEX.

“The Settlors or Operators are the major problems  we have by failing to setup HCDTs and the mode of creating the trusts is another key problem where they supper imposing candidates of there cohort confusing the communities against the extant Law of PIA.

“Finally, we want to emphasise that HOSTCOM  is not comfortable towards the unpresidented delay in implementation of PIA proper in our communities after over 2 years of enactment of the Act (law) for communities to enjoy the dividends of the annual 3% Opex developmentstrides.

“HOSTCOM call on the Commission to list and publish and treat defaulting Oil Companies as stated by PIA.

“We also call on Community’s leadership to conduct themselves not to be used by Oil multinationals drag matters to delay the implementation of the PIA rather work out there differences.

“HOSTCOM Leadership reiterated  the complaint from Host communities in Andoni LGA HCDTs by Green Energy operations in OML11, SPDC in Khana, Gokana,  Eleme LGAS in Rivers State while SPDC in EA Host Communities at Bayelsa in EKeremor LGA, how they have denied or left out up till now .

“During our engagement  with various stakeholders across the Niger Delta oil-bearing communities we recorded numerous complaints against the settlors.
“Engr Gbenga Komolafe, FNSE and his team have done so well that from September 2023 today we have recorded over 130 HCDTS sported for registration and HOSTCOM restated its commitment to the sustainable development and empowerment of the communities.
“We remain dedicated to our mandate of ensuring peacefull co existence between settlors and communities for the interest of justice and fairness and we will continue to support the Commission for good regulations for the betterment of  host communities for sustainable development and prosperity.”

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