DEVELOPMENT AND PRODUCTION

The Development and Production (D&P) Department is one of the six (6) departments of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) in compliance with section (18) subsection (2b) of the Petroleum Industry Act (PIA) 2021.

D&P is primarily responsible for managing the technical and commercial oversights of the Upstream Oil and Gas industry in Nigeria in accordance with sections (6), (7) & (8) of the PIA. Additionally, D&P has the statutory responsibility of ensuring compliance to petroleum laws, regulations, and guidelines in the oil and gas industry.

MANDATES

D&P executes its mandate and responsibilities through its three (3) main Divisions: Hydrocarbon Development Division, Hydrocarbon Production Division, & Energy Sustainability & Carbon Management.

1. HYDROCARBON DEVELOPMENT DIVISION

Mandate of the Hydrocarbon Development Division

The Development Division ensures efficient and effective upstream petroleum operations by driving optimal field development and reservoir performance, overseeing well operations, maintaining facility integrity, and ensuring asset reliability. It evaluates well proposals, ensures regulatory compliance, and manages unitization processes.  Additionally, the division conducts audits, inspections, and conformity assessments to uphold industry standards, mitigate operational risks, and promote sustainable development in the sector.

UNITS WITHIN HYDROCARBON DEVELOPMENT AND PRODUCTION DIVISION

A. FIELD DEVELOPMENT PLANNING UNITS

Key Functions

  • Facilitate Field Development Studies
  • Develop strategy for Field Development Planning
  • Carry out cost estimation and economic analysis
  • Manage FDP applications
  • Monitor FDP Execution

 B. RESERVOIR MANAGEMENT AND UNITISATION (RMU)

Key Functions

  • Unitization Agreements and Negotiations
  • Scouting for Unitization Candidates
  • Managing other unitization-related issues
  • Unitization Status and Reporting
  • Reservoir Characterization and Modelling
  • Resource Estimation and Reporting

 C. RESERVOIR PERFORMANCE MANAGEMENT (RPM)

Key Functions

  • Reservoir Monitoring and Data Analysis
  • Reservoir Performance Evaluation
  • Production Optimization and Enhancement

D. WELLS AND DRILLING SERVICES (WDS)

Key Functions

  • Process Well Location Notice (Application for Approval to Drill).
  • Process Well Re-Entry Applications.
  • Rig License Applications and Rig Inventory Management.
  • Drilling Operations Management.
  • Re-Entry Operations Management.

E. FACILITIES ENGINEERING (FACILITIES)

Key Functions

  • Coordinate the Issuance of Facilities Development Milestones Permits & Authorizations: Right of Way Permits, Permit to Survey, Oil Pipeline License, Concept Design Approval, etc.
  • Maintain a Comprehensive Database of Metering, Pipeline, and Production Facilities Development Projects: Issued Permits and Authorizations.
  • Propose, Review, and Implement Regulations, Guidelines, and Standards to achieve optimum oil and gas production facilities development.

Key Deliverables

  • Compliance with engineering and regulatory standards in production, metering, and pipeline facilities development.
  • Periodic publication of issued Facilities Development Milestones Permits & Authorizations.
  • Analytical reports of Facilities Development Projects Database and issued milestones.
  • Proper documentation of Facilities Development Project requirements for ease of compliance.
  • Standardized and transparent engineering milestone approval application review processes.
  • Updated and effective Facilities Development Project guidance documents and standards.

F. STANDARD CONFORMITY ASSESSMENT AND TECHNOLOGY ADAPTATION (SCATA)

Key Functions

  • Formulation and Adoption of Standards and Guidelines.
  • Facilitate Interface Management with Standards Providers.
  • Coordinate Technical Studies and Safety Cases.
  • Assess Oil and Gas Production Technologies.
  • Coordinate the Qualification Process for Novel Technologies.
  • Monitor Deployment of New Technologies.
  • Administer Remaining Life Assessment of Aging Facilities.
  • Evaluate and Enforce Technical Verification.
  • Administer Performance Assurance.

G. DECOMMISSIONING & ABANDONMENT (D&A)

Key Functions

  1. Assess and Evaluate Early D&A Plans.
  2. Track Compliance with D&A Fund Obligations.
  3. Periodic Re-evaluation of Early D&A Plans.
  4. Assess Nationwide Oil & Gas Infrastructure Disposition.
  5. Evaluate End-of-Life (EoL) Work Programs.

H. PROJECT ENGINEERING & MONITORING (PEM)

Key Functions

  • Project Planning and Coordination.
  • Project Cost and Budget Management.
  • Project Implementation/Monitoring Risk Assessment and Mitigation.
  • Project Performance Monitoring and Reporting.

 2. HYDROCARBON PRODUCTION DIVISION

A. PRODUCTION ALLOCATION AND CURTAILMENT (PAC) SECTION

Key Functions:

  1.  Production Allocation Planning
  • Develop production allocation plans
  • Optimize production allocation strategies
  • Coordinate with stakeholders for allocation agreements
  1. Curtailment Management
  • Monitor production curtailment requirements
  • Implement curtailment measures
  • Ensure compliance with curtailment regulations
  • Liaise with OPEC on curtailment management
  1. Allocation and Curtailment Tracking
  • Monitor and track production allocation
  • Maintain allocation and curtailment records
  • Generate allocation and curtailment reports as at when due
  • Identify opportunities for optimization
  • Monitor reservoir performance for Voidage Replacement Ratio (VRR) analysis
  • Implement measures to enhance allocation and curtailment efficiency
  1. Coordinate, Monitor & Regulate Well Test
  • Process requests for well test
  • Monitor well test and ensure well tests are carried out as approved
  • Analyses well test data and make recommendations
  1. Domestic Crude Oil Supply Obligation Management
  • Receive the National Domestic Crude Oil Demand from NMDPRA
  • Process the issuance of Request for Quotation (RFQ) for domestic crude oil supply
  • Process the issuance of DCOSO to relevant operator

B. PETROLEUM SURVEILLANCE AND ANALYTICS SECTION

Key Functions:

  1. Advisory and Regulatory Support
  • Provide advice to operators in accordance with regulatory guidelines
  • Aid in the development of government policies concerning sustainable oil and gas resource development through recommendations.
  1. Reservoir and Well Management
  • Conduct thorough reservoir performance evaluations based on MRPW
  • Aid in the selection of wells/candidates for rigless interventions
  1. Well Performance and Production Insights
  • Provide deeper insights into the health and performance of wells o Monitor compliance with Technical Allowable Rates (TAR)
  1. Surveillance and Compliance Oversight
  • Conduct independent operational surveillance to ensure regulatory compliance5. Production and Data Analytics
  • Assess well-by-well and field-by-field production data
  • Analyze routine production test data
  • Evaluate allocation factors

5. Equipment and Facilities Management

  • Assess the integrity of production facilities
  • Recommend strategies to optimize performance of shut-in wells

     6. Production Forecasting and Strategy

  • Support production forecasting by evaluating MER tests
  • Collaborate with operators to ensure optimized production outcomes

      7. Risk Management and Revenue Generation

  • Identify oil and gas production risks
  • Generate revenue through fines for regulatory infractions on TAR

     8. Reservoir and Production Optimization

  • Recommend reservoir management strategies
  • Implement strategies for continuous monitoring and optimization of shut-in wells

C. PETROLEUM ACCOUNTING SECTION

Key Functions:

  • Management of crude oil/condensate production and export data
  • Provide production/export data to stakeholders (internal and external)
  • Monitor determination and allocation of crude oil production and losses
  • Audit companies’ production/losses allocation templates.

D. GAS UTILIZATION SECTION

Key Functions:

  1. Gas Utilization Planning
  • Develop strategies for gas utilization
  • Identify optimization opportunities for gas utilization
  • Facilitate stakeholders’ partnerships for maximizing natural gas value
  • Gas Utilization Solution assurance in Field Development Plans (FDP)
  1. Domestic Gas Delivery Obligation (DGDO)
  • Participate in the National Gas Demand Requirement workshop by NMDPRA
  • Administer the allocation of DGDO to all gas producers
  • DGDO performance and compliance administration
  • Manage stakeholder relations for DGDO implementation
  1. Gas Flare Permitting, Elimination & Monetization
  • Administration of gas flare thresholds for all flaring facilities and fields   Administer non-routine flaring permitting for maintenance, commissioning, and emergencies, etc.
  • Administer and implement Gas Flare Elimination and Monetization Plans (GFEMP)
  1. Gas Production and Utilization Accounting and Data Administration
  • Collation, reconciliation and administration of gas production, utilization and flaring data
  • Verify and certify own-use gas inventories
  • Enforce regulatory compliance on flare and sales gas meters
  • Certification of gas production, utilization and flare volumes
  1. Gas Flare & Sales Gas Meter Regulatory Compliance Assurance
  • Ensuring accurate gas flare and sales measurement for royalty and fiscal accounting
  • Administration of gas flare/sales meter inventory
  • Coordinate Special Gas Business Programs (Decade of Gas; National Gas Expansion)
  • Interface with gas midstream business, CNG, LPG and LNG Programs and initiatives
  • Facilitation of NUPRC mandate on the Decade of Gas

E. ASSET INTEGRITY MANAGEMENT (AIM) SECTION

Key Functions:

  1. Conformity Assessment; Conduct annual audits on facilities to assess compliance to the prescribed standards for Asset Integrity Management.
  2. License to Operate Upstream Oil and Gas Facilities; Issue and renew Licenses to Operate (LTO) to operators of all oil and gas production facilities.
  3. Risk-Based Inspection; Approve operators’ applications to adopt Risk- Based Inspection (RBI) strategies; participate in revalidation workshops and issue RBI Methodology and Implementation approvals.
  4. 4. Coastal Vessel License; Issue licenses to vessel operators for transporting crude oil and supplies in the upstream oil and gas sector

F. COGTO – CRUDE OIL LIFTING

Key Functions:

  1. Regulate Oil and Gas Export Operations
  2. Ensure authorized lifting of crude oil, condensate, and gas
  3. Confirm export quantity and quality during outturn verification
  4. Ascertain quality and quantity at the load port

G. COGTO – CRUDE OIL FACILITIES

Key Functions:

  1. Review and recommend LACT Units, Prover Loops, and Measuring Systems
  2. Alternate evacuation via barging and trucking
  3. Storage tank recertification
  4. Prover recertification
  5. Processing of Terminal establishment Orders
  6. Terminal maintenance and repairs processing

 3. ENERGY SUSTAINABILITY & CARBON MANAGEMENT (ES&CM) DIVISION

Mandate of the ES&CM Division

Champion the decarbonization of upstream operations to sustain investments in oil & gas resource development for national energy security and economic development

UNITS WITHIN ES&CM

A. Decarbonization & Energy Systems Team

Key Functions

  • Develop and implement decarbonization strategies and feasibility assessments.
  • Optimize energy systems for efficiency and renewable energy integration.
  • Monitor carbon emissions and implement reduction measures.

B. Energy Data Analytics & Emissions Reporting Team

Key Functions

  • Collect, analyze, and model energy and emissions data.
  • Ensure regulatory compliance through emissions reporting and reduction initiatives.
  • Engage stakeholders and communicate energy and emissions performance.

Key Functions

  • Analyze the carbon market landscape and identify trends and opportunities.
  • Develop and implement carbon credit projects.
  • Facilitate carbon credit trading and ensure transaction transparency.
  • Advocate for supportive policies and engage stakeholders in market development.

C. Decarbonization Commercial Framework Team

Key Functions

  1. Develop commercial frameworks, pricing mechanisms, and business models.
  2. Conduct financial analysis and secure funding for decarbonization projects.
  3. Build partnerships with key stakeholders and manage project risks.