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NCDMB to retain oil insurance spends in Nigeria, partners NAICOM to Launch Insurance Services Guidelines

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NCDMB to retain oil insurance spends in Nigeria, partners NAICOM to Launch Insurance Services Guidelines

Modupe ASUDO

ABUJA-THE Nigerian Content Development and Monitoring Board (NCDMB) and the National Insurance Commission (NAICOM) have signed insurance services guideline which will oblige the oil and gas industry to patronize the local insurance sector, thereby retaining insurance spending in the economy.

The guidelines will also address loopholes that have been identified while implementing the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, particularly sections 49 and 50, which deals with insurance of oil and gas activities. The Executive Secretary, NCDMB, Engr. Simbi Kesiye Wabote and the Commissioner for Insurance, Mr. Sunday Thomas signed the guidelines recently on behalf of their organisations in Yenagoa. In his remarks, the Executive Secretary stated that the provisions of sections 49 and 50 of the NOGICD Act require all operators engaged in any form of activity or project in the Oil and Gas industry to insure all insurable risks related to its oil and gas business with an insurance company, through an insurance broker registered in Nigeria.

He stressed further that the Act provides that where an operator seeks to place an insurable risk offshore, a written approval of NAICOM must first be sought and obtained and that NAICOM before the issuance of the approval must ascertain that local capacity has been fully exhausted. Wabote reiterated that the Insurance guideline will strengthen the Board’s local content drive and ensure that a greater portion of the spend in the Insurance industry as it relates to oil and gas activities in Nigeria is retained in-country. In his words, “the insurance guideline being launched today was developed by the two regulatory bodies to ensure that government’s intention of promoting insurance services within the country is achieved so as to capture significant financial spend under oil and gas insurance services in country.”

The NCDMB chieftain said the collaboration between Board and NAICOM will further ensure the successful implementation of the Insurance Guidelines and every other activity that will lead to the attainment of the objectives of the NOGICD Act, 2010 as well as 70 percent Nigerian Content by 2027 under the Board’s 10-Year Strategic Roadmap. He added that finer details of the guidelines will be released at the Nigerian Content Seminar at the 2022 Nigerian Oil and Gas Conference scheduled for July 2022.

In his comments, the Commissioner for Insurance, NAICOM, Mr. Sunday Thomas charged all stakeholders engaged in any form of business, operations or contract in the Nigerian oil and gas industry to ensure compliance with the relevant laws and compliance with the insurance Guidelines. Thomas expressed optimism that the partnership between the Board and NAICOM will realize the benefits of increased local content, in-country value retention, job creation and employment generation and GDP growth amongst other. While appreciating the efforts of the Board, the NAICOM boss pledged his agency’s commitment to create an enabling environment that will consistently enhance increased capacity of the Insurance Institutions both financially and technically.

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NUPRC, NNRA to Sync Regulations, Improve Industry Safety

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As part of efforts to reduce the cost of doing business in the upstream petroleum sector, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Nuclear Regulatory Authority (NNRA) are reviewing regulatory processes in the bid to strengthen radiological safety in oil and gas operations.

The initiative, a statement on Sunday, has it was on the agenda at a recent meeting between the Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, and the Director-General and Chief Executive Officer of the NNRA, Yau Idris, at the commission’s headquarters in Abuja.

In the statement, the Head of Corporate Communications and Media at the NUPRC, Eniola Akinkuotu, averred that the collaboration is expected to address overlapping regulatory requirements, close existing gaps in oversight, and create a more efficient compliance framework for operators in the industry.

The statement read, “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.”

While the NUPRC regulates the technical, commercial, and operational aspects of oil and gas exploration and production, the NNRA is responsible for regulating the possession, use, transportation, and disposal of radioactive materials and radiation-emitting equipment across the country.

During the meeting, Eyesan stressed the need for greater collaboration among regulators to eliminate duplication and improve the investment climate in Nigeria’s oil and gas sector.

She noted that excessive regulatory requirements often translate into additional costs for operators, ultimately affecting the competitiveness of the industry.

“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,” the NUPRC boss said.

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Eyesan nominated senior officials from the commission who will work closely with the NNRA on the task ahead.

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

Responding, Idris said the cooperation of the NUPRC was crucial because the upstream petroleum industry remains one of the largest users of radioactive sources and radiation-emitting equipment in Nigeria.

According to him, radioactive technologies are widely deployed in well logging, industrial radiography, and nucleonic gauging activities that support oil and gas exploration and production.

He explained that the partnership would enable both agencies to share information and simplify compliance procedures for operators.

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

Idris further stated that, since oil and gas extraction often brings Naturally Occurring Radioactive Materials (NORM) to the surface, the NNRA seeks the assistance of the commission to ensure that operators conduct radiological impact assessments as part of their broader Environmental Impact Assessments, while NORM management protocols are incorporated into the NUPRC’s environmental guidelines for the upstream sector.

The two agencies also agreed to deepen collaboration in training, capacity building, and knowledge sharing on radiation protection and safe operational practices.

The latest partnership comes as the Federal Government intensifies efforts to boost investment in the petroleum sector, increase production, and enhance operational efficiency following the implementation of the Petroleum Industry Act.

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NUPRC Urges Lenders to Back Domestic Oil and Gas Coys

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has urged lenders to back oil and gas operators’ bids for the expansion of domestic gas production.

The Commission Chief Executive, NUPRC, Oritsemeyiwa Eyesan, expressed the view when top executives of Rand Merchant Bank (RMB) visited the Commission headquarters in Abuja.

Eyesan emphasised the importance of collaboration between regulators, financiers and operators to unlock investment and accelerate growth in the country’s gas sector.

“One critical element will be financing, and we are hoping that you and the financial world will be there to support us. We will ensure that the industry operates in accordance with the Petroleum Industry Act and all other regulatory instruments,” Eyesan said.

She disclosed that the industry’s appetite for investment is very strong, as demonstrated by the interest in the ongoing 2025 licensing bid round, which witnessed almost 300 applications from IOCs and indigenous operators.

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The NUPRC boss also highlighted ongoing initiatives around energy transition, including the issuance of Permits to Access Flare Gas (PAFG) to 28 firms and a target of 60 percent reduction in fugitive methane emissions by 2031, among other initiatives aimed at promoting sustainable development in the upstream sector.

Responding, the Head of Oil and Gas Coverage at Rand Merchant Bank, Jonathan Ross, said the bank is keen on supporting Nigeria’s efforts to grow oil and gas production, with a particular focus on gas development.

He described gas as a strategic priority for the bank, citing major infrastructure projects such as the OB3 Gas Pipeline as critical to unlocking the country’s vast gas potential.

The bank also acknowledged recent regulatory reforms and improvements in security in host communities, noting that Nigeria is in a stronger position to attract investment than in previous years.

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Anatolia Energy Empowers Nembe HCDT with Leadership Training

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Anatolia Energy and Services Limited, operator of PML104/Okiori Oil Field, has organised a three-day leadership development programme for members of the Nembe Okiori Host Community Development Trust.

This, it was gathered, was as part of a strategic plan to build the capacity of the Trust to drive sustainable development of its host communities in Nembe Kingdom, Bayelsa State in line with the Petroleum Industry Act 2021.

The programme covers strategic leadership, management skills, teamwork, legal and regulatory framework for the operations of Host Community Development Trust, stakeholder management, and communication, among others.

Those in attendance at the training were members of the management committee of the host community, members of the advisory committee of the community and members of the Board of Trustees Members of the community.

During the opening of the training, the Chief Operating Officer of the firm, Dr Adeleke Adedipe encouraged participants to make the best of the programme.

He pointed out that the company has invested so much to put the training together to equip the Trust members to effectively manage the operations of the HCDT and ensure sustainable development in the communities, as well as provide an enabling environment for the Settlor’s production operations.

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The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, represented by its Bayelsa State Field Office Manager, Sylvester Bighoro charged the members of Nembe Okiori HCDT to take the leadership development programme seriously and apply the knowledge gained in the running of the HCDT.

She expressed the Commission’s delight at the capacity building initiative of the Settlor.

The Bayelsa State Commissioner for Mineral Resources, Barr. Peter Afagha, represented by the Director of Petroleum, Kuroakighe Mathias, expressed gratitude to Anatolia Energy for organising the training for the Nembe Okirori HCDT.

He said the training will go a long way in enhancing the performance of the HCDT. He further said the Bayelsa State Government will continue to support oil and gas companies to ensure smooth operation in the state.

Delivering his lecture during the leadership development training, a renowned leadership coach, Dr Emmanuel Dorgbaa of the African Institute of Public Speaking and Communications Excellence, called on the leadership of oil producing communities to transparently manage the resources allocated to the various communities for the overall benefits of the people.

He urged community leaders to have a clear vision of projects they want to do for the community and communicate the visions to members of the community in clear terms.

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