By Moses Patience Chat
The Federal Government has Finalized plans to explore alternative funding structures for the development of oil and gas projects in the country.
The plans are targeted at achieving the sustainable development of the nation’s petroleum resources despite funding challenges that investors encounter in the process of investing in Nigeria.
The Commission Chief Executive (CCE of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, disclosed this Wednesday at the opening of the pavilion and exhibition stand of Nigerian oil and gas companies at the Oil Technology Conference (OTC) in the US city of Houston, Texas.
Komolafe said the need to develop the country’s hydrocarbon resources requires huge funding, hence the decision of the Commission to develop an alternative funding model for the industry.
He also maintained that Nigeria with abundant oil and gas reserves and other sources of energy is well-positioned to be a superpower if all these hydrocarbon resources are well-developed in a coordinated manner.
The NUPRC Boss further explained that the signing into law of the Petroleum Industry Act (PIA) had created a landmark reform in the petroleum industry, including an attractive fiscal and regulatory regime.
His words: “The energy transition conversation is gaining momentum globally and, as a nation, we need to keep track of that conversation. Good enough, Nigeria is keeping track of the conversation and we are finetuning our policies to be in alignment with the energy conversation.
“Preparation is being progressed and recall that President Muhammadu Buhari made a commitment that the nation will attain net-zero emission by 2060.
”Therefore, Nigeria has developed its energy transition plan and for us as the regulatory commission, we are finetuning our policies and regulations to be in alignment.”
“What the Commission is doing is a landmark plan to organize an E&P International Financing Road Show for financiers, investment bankers, private equities, and multi-lateral institutional investors.
”The initiative is to showcase the high-value quick win opportunities available to investors in the recent PPL awards, the ongoing National Gas Flare Commercialization Programme, as well as the ongoing deepwater mini-bid awards.”