ECONOMIC REGULATION AND STRATEGIC PLANNING (ER&SP) DEPARTMENT
The Economic Regulation and Strategic Planning (ER&SP) Department is one of the six (6) departments of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) in compliance with section (18) subsection (2) of the Petroleum Industry Act (PIA) 2021.
The ER&SP Department of the Nigeria Upstream Petroleum Regulatory Commission manages the commercial aspects of Nigeria’s upstream petroleum operations in accordance with sections (7) and (8) of the PIA. In addition, the Department monitors and coordinates strategic and budget planning for the Commission.
MANDATES
ER&SP executes its mandate and responsibilities through its two (2) main Divisions: Economic Regulation and Strategic Planning
ECONOMIC REGULATION DIVISION
This Division ensures the Nigerian government benefits economically from petroleum resources. The division’s mandate includes managing royalties, rentals, and fees, setting market-reflective oil prices, monitoring licensees’ financial viability, approving commercial aspects of field development plans, and conducting economic studies and due diligence.
UNITS WITHIN ECONOMIC REGULATION DIVISION
Fiscal Value Administration Unit
Key functions
- Royalty assessment management
- Conduct market research on prices and valuation
- Regulatory compliance and reporting
Deliverables
- Publish quarterly indebtedness status of all Exploration and Production companies.
- Issuance of quarterly demand notice to the Exploration and production companies
- Publish monthly report of market analysis that monitor trends and enable the nation’s crude grade remain competitive in the international markets
Fiscal Advisory and Policy Implementation Unit
Key function
- Advise Management on impact of Fiscal and Policy and ensure regulatory compliance in the industry.
- Administration of third-party Open Access for crude oil and gas handling and Transportation
- Mediation on conflict on gas supply debts and fiscal pricing
- Determination of Upstream Gas Cost for Domestic Gas Supply Obligation
Deliverables
- Issuance of Third-Party Crude Oil Handling and Transportation Permit
- Annual computation of domestic case cost of gas
Economic Value Administration Unit
Key Functions
- Valuation of Petroleum Assets
- Conducting Financial Due Diligence on upstream petroleum transactions
- Field Development Plan budgeting analysis
- Monitoring Financial viability and capacity of E & P companies and Oil and Gas Service Companies
- Project cost management
- Assessment of statutory funds – Decommissioning and Abandonment (D & A) Fund, Environmental Remediation Fund (ERF), Host Community Development (HCD) Fund.
Deliverables
- Petroleum Assets Valuation Reports
- Upstream Petroleum transactions Financial Considerations Reports
- Field Development Plan Commercial Evaluation Reports
- Annual E & P Companies and Permit Holders Financial Performance, Viability and Capacity Report
- Upstream project cost Benchmarks and Analytics
- Annual Statutory Funds Assessment Reports
Revenue Reporting & Audit Engagement Unit
Key Functions
- Revenue reporting
- Revenue audit engagement
- Stakeholder engagement
- Process improvement
Deliverable
- Monthly revenue reports for internal and external stakeholders
Revenue Monitoring, and Control Unit
Key Functions
- Revenue monitoring
- Revenue control
- Revenue analysis
- Process improvement
Deliverables
- Monthly report of Revenue Assurance activities on the various Revenue platforms such as COTEX, GATEX, REMITA, IGR, etc.
- Monthly report on Internally Generated Revenue (IGR) and Miscellaneous Oil Revenue (MOR) in compliance with extant fiscal and financial regulations.
Revenue Ledger and Information Systems Unit
Key Functions
- Revenue accounting and management
- Information systems management
- Reporting and analysis
- Process improvement
Deliverables
- Prepare financial reports on revenue performance
- Develop and maintain a reliable database system
- Monthly Revenue leakage Report.
STRATEGIC PLANNING DIVISION
This Division identifies strategic opportunities, research industry trends, handles performance evaluation, assesses risk and develops mitigation strategies for the commission. In addition, the division evaluates the performance of operators’ annual work programs.
Data Management Unit
Key functions
- Oversee Commission’s commercial data systems and reporting
- Data collection and analysis
- Data reporting and communication
- Commercial data management and systems
- Data Management Solutions and Systems
- Collaborate with external Stakeholders to foster effective service delivery
Deliverables
- Preparation of NUPRC Monthly, Mid-Year and Annual reports
- Preparation of Nigeria Oil and Gas Industry Annual report (NOGIAR)
- Maintain Commission Electronic Financial and Operational Data Gathering and Reporting System
- Prepare industry-relevant data report consisting of commercial data trends, patterns, and variances for decision-making
- Provide data support and training for industry stakeholders
Budget Administration Unit
Key functions:
- Development of Commission’s annual budget
- Budget performance monitoring and analysis
- Development of inputs to FGN’s Medium-Term Revenue & Expenditure Framework Mid-term Revenue and Expenditure Forecast (MTREF)/Fiscal Strategy paper (FSP)
- Stakeholder engagement
Deliverables
- Publishing quarterly budget performance reports detailing deviations and variances in budget utilization
- Publishing Cost-saving advisory and implementation report to optimize budget allocation (Adhoc)
- Annual Cost of Revenue Collection (CORC) Budget
- Annual Commission’s Input to FGN’s MTREF/FSP
- Annual Commission’s Input to National Infrastructure Report
Work Programme Performance & Evaluation Unit
Key functions:
- Administration of annual work programme
- Performance monitoring and evaluation
- Performance reporting
- Continuous improvement
Deliverables
- Annual comprehensive reports on work programme performance and achievements
- Annual performance reports on the progress of work programme activities against approved plans.
Strategic Research & Development Unit
Key functions:
- Strategic research and analysis
- Development, monitoring and evaluation of strategic initiatives
Deliverables
- Bi-annual Strategic initiative implementation Report
- Governance Framework on Research and Projects
Risk Management Unit
Key functions:
- Risk identification and assessment
- Risk mitigation and control
- Risk reporting and communication
- Risk management framework development Deliverables
- Enterprise Risk Management Policy
- Quarterly reports detailing identified risks, their impact, and mitigation efforts.
Service Industry & Investment Unit
Key functions
- Oil & Gas market trend analysis
- Investment facilitation and promotion
- Development and implementation of investment policies
- Investment performance evaluation Deliverable
- Quarterly reports Identifying potential investment opportunities within the service industry sector
- Quarterly assessment report on the performance and impact of the service industry investment project
Achievements
- Launched the Annual Work Program and Budget portal to automate submission of annual work program
- Deployed the Petroleum Resource Intelligence System (PRIS) Portal
- Seamless transition of Nigerian crude oil pricing function from NNPCL to NUPRC.
- Seamless transition of the Crude Oil and Gas Curtailment role from NNPCL to NUPRC.
