NUPRC, NNRA to cut oil production costs, boost safety regulations

Nigeria's oil and gas sector is set for a regulatory overhaul as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Nuclear Regulatory Authority (NNRA) join forces. The collaboration aims to harmonize overlapping regulatory processes, strengthen radiological safety, and ultimately reduce the cost of doing business in the upstream petroleum sector.

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The Nigerian Upstream Petroleum Regulatory Commission is partnering with the Nigerian Nuclear Regulatory Authority in order to enforce radiological safety in oil and gas operations and reduce the overall cost of operations.

The initiative stems from a recent meeting in Abuja between NUPRC's Chief Executive, Oritsemeyiwa Eyesan, and NNRA's Director-General, Yau Idris. According to an NUPRC statement, the partnership will address redundant regulatory requirements, close oversight gaps, and establish a more efficient compliance framework for industry operators.

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The only way we can safeguard investments is to reduce our cost of operations, and when you have a multiplicity of laws, the likelihood is that you will have higher costs because each law normally will come with its own fees and charges.

Eyesan highlighted that excessive regulations often lead to increased costs for operators, impacting the industry's competitiveness. "The only way we can safeguard investments is to reduce our cost of operations," she stated, emphasizing that multiple laws and associated fees inflate expenses. She nominated senior NUPRC officials to work with the NNRA on identifying critical areas for collaboration and closing existing gaps.

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We have identified critical areas on both sides and we believe that, as we collaborate, we can close existing gaps.

Idris acknowledged the NUPRC's crucial role, noting that the upstream petroleum industry is a major user of radioactive sources and equipment for activities like well logging and industrial radiography. He explained that the partnership would facilitate information sharing and simplify compliance procedures, moving towards a "single-window approach" where operators submit data only once. This collaboration is particularly relevant as oil and gas extraction often involves Naturally Occurring Radioactive Materials (NORMs).

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The goal is a single-window approach, where both agencies share information rather than requiring operators to submit the same data twice.