I am extremely delighted to speak to this esteemed audience at the 2023 Conference of Parties in the United Arab Emirates – the COP28! on a theme dedicated to tackling humanity’s greatest challenges, that is, the Climate, Energy Security and Economic Prosperity.

Ladies and gentlemen, let us appreciate the great and remarkable efforts of the National Council on Climate Change (NCCC) for commendably organising and coordinating the excellent side events that highlights the Nigeria story at this Pavilion.

2. The COP 28 outlines four (4) well-selected all-encompassing themes, namely: technology and innovation, inclusion, frontline communities, and finance. Every one of us brings a unique perspective to the conversations on the challenges, strategies, plans and solutions around those themes. But most importantly, the themes accord us another grand opportunity to interrogate our thinking at this critical time on sustainability and value optimization in the energy sector for overall economic development and shared prosperity.
3. Ladies and Gentlemen, Distinguished Delegates, you would agree with me that the United Nations Framework Convention on Climate Change (UNFCCC), has over the years provided the basis for revolutionary climate frameworks and negotiations, based on principles that govern activities for addressing emissions and enabling climate actions. Through the Conference of Parties (COP), global leaders and governments have mobilised a broad spectrum of professionals from the communities of climate, energy, environmental, civil society, investors, and individuals to tackle the climate crisis. The multi-stakeholder engagements have fostered interactions and facilitated new partnerships towards a more sustainable environment to meet global energy needs. The Conference of Parties has progressively resulted in landmark agreements such as the Kyoto Protocol in 1997 and the Paris Agreement in 2015 as well as producing strategic plans on climate actions formulated in COP 24 and COP 26 hosted in Poland and Glasgow, respectively. Last year’s Assembly at Egypt, focused on the implementation of the afore-mentioned plans and renewed commitments.
4. In the Nigerian upstream petroleum sector, we have focused in driving industry efficiency and sustainability based on the Petroleum Industry Act, 2021 (PIA) and in line with the Nigeria Energy Transition Plan. Thus, this Paper would highlight our key actions in Driving Sustainable Upstream Operations to Achieve Just and Equitable Energy Transition,

5. Distinguished ladies and gentlemen, based on the Paris Agreement, Nigeria has set Nationally Determined Contributions (NDC) in support of 2030 emission reduction targets for which Nigeria is committed to unconditional reduction of 20% and conditional reduction of 47% with international support in the form of financing, technology transfer, and capacity building. Consequently, the Nigerian oil and gas emission reduction targets were set at 60% reduction in fugitive methane emission by 2031 and zero gas flaring in 2030 as part of the ambitious transition path defined for achieving national climate neutrality by 2060. These mitigation measures have further been emphasised in the Nigeria’s Long-Term Low Emission Development Strategy, launched at this Conference on Friday, 1^st December 2023 by the National Council on Climate Change (NCCC).
6. Whereas the global imperatives may be perceived to be driven primarily by climate and environmental actions, the impacts of energy geopolitics and global resource control cannot be overlooked. Thus, the evolving dynamics must be calibrated against geography, history, and politics as well as the need for energy justice, equity, inclusivity, and sustainability. Remarkably, global leaders at various fora, including the May 2023 G7 Ministers Summit held in Japan, September 2023 G20 New Delhi summit and the 78th Session of the United Nations General Assembly, upheld that “national circumstances” will be factored into the phasing down of fossil fuels. The IEA World Energy Outlook 2023 aptly sums it up in this manner: “every country needs to find its own pathway, and it needs to be inclusive and equitable to secure public acceptance…”
7. The stance of world leaders was in recognition of the impacts of the unprecedented global energy crisis which has derailed the global energy transition plans. Interestingly, the blueprint of country-tailored pathways to transition aligns perfectly with Nigeria’s position on “just and equitable transition”. While the global imperatives for energy transition is clear and justified, the need for the energy security, economic development and prosperity are more compelling. For us in Nigeria, energy transition presents grand opportunities to mobilise our resources to deepen energy security in an environmentally sustainable manner.
8. Ladies and Gentlemen, as the energy transition gains momentum, it should be stressed that, Nigeria is well resourced in the energy mix. The nation is blessed with potentials for green and blue hydrogen, solar, wind, biomass, and other renewable sources as well as the availability of critical minerals that support accessories for renewables and clean energy technologies. This underscores the immense potentials of Nigeria to contribute to the evolving global energy landscape for economic prosperity and sustainability.
9. Consequently, as the regulator and business enabler, the Nigeria Upstream Petroleum Regulatory Commission is leveraging the opportunity of rising global energy demand to position the Nigerian upstream sector for decarbonisation to meet national aspirations.
10. Distinguished Stakeholders, the future we foresee for the petroleum industry is one that should assure for the utilization of Nigeria’s endowed natural hydrocarbon resources for shared prosperity, energy accessibility, sustainability, and security. Those are the cardinal pillars of the Nigeria Energy Transition Plan upon which basis the Nigerian Government declared natural gas as transition or bridge fuel. In the same vein, Government has initiated the Decade of Gas programme to actualise the objectives of unlocking investments required to grow gas production from an average of 7.0 bcfd in 2023 to 12 bcfd in 2030 to be driven by major projects such as NLNG Train 7 & 8, Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project and the Nigeria – Morocco Gas Pipeline, and so forth. Based on projected gas demand, significant opportunities for participation exist for both existing investors and new entrants. It is our expectation that international investors would support Nigeria’s gas journey in its energy transition pathway. Similarly, we are implementing the green story in Field Development Plans (FDPs) to integrate decarbonisation measures and adherence to ESG principles in upstream development.
11. Distinguished Delegates, Ladies and Gentlemen, permit me to reiterate the attractive fiscal incentives in the Petroleum Industry Act which investors are encouraged to leverage for energy infrastructure development. The incentives include: zero-hydrocarbon tax for deep water developments, reduced royalty rates based on production and terrains, and tax consolidation provisions amongst others. In the implementation of the PIA, the Commission is benchmarking its regulatory approaches with the best international standards targeted at achieving:

• Reducing Unit Operating Cost
• Developing a Transparent Approach to Hydrocarbon Accounting
• Attaining Operational Efficiency and Effectiveness in our Operations
• Achieve Peace and Harmony in the Host Community Environment
• Increasing Nigeria’s Oil and Gas Reserves and Production.
• Reduction in Carbon Footprint and the Attainment of Net Zero Global Emissions Target
• Create Sanity and Predictability

11. In addition, the Commission has intensified efforts towards eliminating flared gas while arresting methane and other fugitive gas emissions, by commercializing forty-nine (49) flare sites through the Nigerian Gas Flare Commercialization Program (NGFCP). Further investment opportunities are also available in ongoing and future licencing rounds for oil and gas blocks, seismic acquisition on multiclient basis, development of deeper hydrocarbon opportunities, carbon markets, evacuation logistics, IT and surveillance infrastructure etc. Each of these areas provides a unique entry point for willing investors and are essential components of our national architecture for sustainable energy infrastructure development.
12. This programme is a major platform for Nigeria to showcase its commitment towards zero emission by 2060. In this regard, as a Commission we are happy to showcase at this forum that significant progress has been recorded in the implementation of the NGFCP. With the emergence of Awardees, the successful entities are progressing towards the conclusion of commercial agreements and commencement of project execution. This is a major win in Nigeria’s energy transition pathway. Upon completion, we estimate a reduction of about 500 MMscfd of flare gas, representing 50% of current flare disposition, which is equivalent 6 Million tonnes of CO₂ emission per year.
13. Permit me at this point to recognize and appreciate the considerable support of international partners and collaborators such as the USAID, World Bank GGFR, US Net Zero World (NZW) and other development agencies that have supported our implementation efforts. We have likewise recorded progress in new partnerships with the South Korean, Norwegian, and German Authorities on the Programme and similar decarbonisation initiatives.
14. Also it is important at this point for us at this forum as a Commission to make a clarion call on the investors, multilateral organisation, international financiers, technical service providers and partner entities to collaborate with the Commission and to enhance their support as flare-out projects are being consummated and developed. To this end, the Commission calls on all well-meaning Partners to deepen support for programme toward full value realization through:

• Technical support
• Financing & funding
• Collaboration for carbon credit earning framework as a major climate action for Nigeria.
• Capacity Building

Together we can succeed in delivering this major climate action project for Nigeria.

15. Distinguished ladies and gentlemen, by the same token, the Commission is championing the decarbonisation of upstream operations to sustain investments for energy security and economic development for Nigeria and benefits for other stakeholders while adhering to ESG principles. Thus, the Commission, collaborating with industry and relevant stakeholders, has formulated a Regulatory Framework to guide the decarbonisation of upstream operations and carbon monetization anchored on seven (7) critical Pillars.
16. I am also pleased to unveil at this Forum the Regulatory Framework for Energy Transition, Decarbonisation & Carbon Monetisation for Upstream Operations in Nigeria. I call on stakeholders, government agencies, operators, and international collaborators to join us as we progress the steady implementation of the Framework within the coming months, which will be underpinned by Directives, Guidelines and Regulations.
17. Interestingly, the implementation of the Regulatory Framework has already commenced on the heels of the issuance of the 2022 Guidelines for Management of Fugitive Methane and Greenhouse Gases Emissions in the Upstream Oil and Gas Operations in Nigeria, which was launched at COP27. Similarly, the introduction of the Gas Flare, Venting & Methane (Prevention of Waste & Pollution) Regulations 2023 provides the renewed legislative basis to take firm actions on gas flaring, venting and fugitive emissions. As a signatory to the Global Methane Initiative (GMI), Global Methane Alliance (GMA) and the Global Methane Pledge (GMP).
18. To guarantee social inclusion and foster harmonious relationship in producing areas the Commission is administering the Host Community provisions of the PIA and have already incorporated 85 HCDTS to attract the dividends to the Host Communities.

Conclusions

Distinguished Delegates, Ladies, and gentlemen, as conclude, I wish to commend the great efforts of the NCCC once again for organising and coordinating the Nigerian Side events at this Pavilion. Nigeria as a nation is suitably positioned to become a superpower in the unfolding energy transition given its population of over 200 Million people and abundant energy sources to achieve the right energy mix. According to Robert Swan ‘’The greatest threat to our planet is the belief that someone else will save it.”. Therefore, let us embrace this theme as a call for action and a charge for enhanced collaboration in unlocking the vast opportunities for advancing Nigeria’s sustainable energy development. We look forward to collaborating with you all to unlock the full potential of Nigerian’s Upstream energy sector in environmentally sustainable manner, for shared prosperity.

BEING PRESENTATION BY THE COMMISSION CHIEF EXECUTIVE (CCE), NIGERIAN UPSTREAM PETROLEUM REGULATORY COMMISSION,

ENGR. GBENGA KOMOLAFE _{FNSE AT COP28}