Petroleum Minister Promises NUPRC’s N68.5Bn ‘BARREL’ Project Success

Sen. Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), promises to see that the N68.5 billion ‘BARREL’ building for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is successfully completed.
This was disclosed by the Minister on Thursday during a meeting with NUPRC management and personnel at the organization’s temporary Abuja headquarters.
Lokpobiri’s visit to the planned NUPRC Headquarters complex site, known as “THE BARREL,” which is located in the Central Business District of Abuja, was preceded by a meeting, according to NAN.
Lokpobiri declared that he would step in to address issues impeding the building’s development, adding that a follow-up was necessary because he had already spoken with the Central Bank of Nigeria (CBN) on how to deal with its FX issues.
“The commission is so important that you need to work in the best condition. To be able to optimise productivity; you need to be in the best environment.
“I am very sad that you are still in the temporary site. The survival of the oil industry depends on what you do; That is why I am interested in ensuring that we complete the building.
“The challenges you have will be mine. Yesterday, I was with the CBN Acting Governor, you need to follow up so that your income that you earn in dollars will be in the domiciliary account for you to expend, instead of converting to Naira,’’ he said.
He acknowledged his delight with the commission’s performance in exceeding its financial prediction, making consistent progress, and reaching the completion level noted during the construction of its permanent site.
“I have been briefed by the contractor handling the project and they raised few concerns. We are going to work towards addressing those concerns,’’ he added.
The Minister was welcomed by Gbenga Komolafe, CCE of the Commission, who stated that the regulatory goal of the organisation was to expand the country’s oil and gas reserves, which were now at 37 billion barrels of oil and 208 TCF of gas.
“We are focused on increasing that through our regulatory approach and of course stepping up the transparency of hydrocarbon account which is very dear to our hearts. So we are pursuing that through strategies and regulations we are putting in place.
In light of this, according to Komolafe, it had overseen the establishment of 82 host community development trusts to act as a platform for the implementation of the PIA clause to ensure peace.
He said that a determined attempt had been made to lower the unit cost per barrel of oil in order to maintain the investment appeal of Nigeria’s upstream sector.
“We are equally in alignment with the global footprint in energy transition, ensuring decarbonisation in alignment with the nation’s net zero carbon emission commitment,’’ he added.
He disclosed that the commission is run out of five regional offices and four field offices, with a devoted workforce of 933 employees around the country.
In terms of income generation, he said that as of July, it had already surpassed 50% of its revenue generating.
He added that this had been the case for the past three years thanks to the dedication of every employee.
Speaking about the “BARREL” project, the CCE stated that the project’s manner of payment consisted of a 65 percent foreign component and a 35 percent local component.
The project (11th floor completion level) was started in 2021 and is scheduled to be finished on August 29, 2024.
Speaking about the work’s progress, Dr Taofik Popoola, Manager of Principal Artec Limited and the building’s design consultant, said that installation and mobilisation had reached 100%, planning and design had reached 95%, construction had reached 96%, and procurement had reached 48%.
He mentioned issues facing the construction industry, including as inflation, the COVID-19 pandemic effect, rising material costs, the Naira’s depreciation (now N978 to the dollar), and the Russian-Ukrainian situation.
“Naira to dollar was N385 at the time the contract was signed, it increased to N750 and now at N978.
According to Luis Sousa, project manager for Julius Berger Nigeria Plc, the supply chain for some commodities was impacted by COVID-19 and the Russia-Ukraine Crisis, particularly in the area of steel supply because Ukraine is the main manufacturer of steel components.

Source: allnews Nigeria

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