Senate to Summon NNPCL as FG Plans Auction of Gas Fields
By David Faith Boluwatife(I T Student IFOTECH)
Chairman of the Senate’s Gas Committee, Jarigbe Jarigbe, disclosed that the Senate is set to summon the Nigerian National Petroleum Corporation Limited (NNPCL) to address concerns regarding insufficient funding for the exploration and development of new frontier acreages.
Following a closed-door meeting with Gbenga Komolafe, the CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Senate expressed its worries over the funding gap.
The Petroleum Industry Act (PIA) mandates that 30 percent of the NNPCL’s profit oil and profit gas from various contracts be allocated to support exploration and development activities in frontier acreages.
Jarigbe emphasized the importance of Section 9 subsections 4 and 5, which require the establishment of a Frontier Acreages Escrow Account and the approval of funds by the National Assembly.
Jarigbe revealed, We met with the commission to discuss these issues and discovered that the 30 percent oil profit and 30 percent gas profit, as outlined in Section 9(4) of the PIA, are not being collected. We also intend to engage with the NNPCL on this matter.
Unfortunately, we lack budget information due to the absence of provided figures, but we will investigate further.
During the interactive session, lawmakers stressed the significance of gas in the country’s economy and its growing importance as a resource that aligns with global energy trends. Nigeria’s efforts to boost gas production and convert it into revenue were also highlighted.
The commission’s gas production dashboard showed an increase in the country’s gas reserves, from 206 trillion cubic feet in 2021 to 208 trillion cubic feet by September 2022. Despite a slight decline in daily gas production during the year, Nigeria aimed to transparently auction gas fields in alignment with the PIA’s provisions and relevant regulations.
Gbenga Komolafe, the CEO of the NUPRC, explained that this auction aims to realize the country’s objectives in terms of gas-to-power generation and revenue. He acknowledged that funding and infrastructure challenges were primary obstacles to gas production.
