The Nigerian Upstream Petroleum Regulatory Commision (NUPRC) says a peaceful environment in oil communities is fundamental to increasing oil production.

The Commision, explained on Wednesday that the Federal Government is poised to increase oil outputt to earn more revenue to tackle current economic hardships.

Mr Gbenga Komolafe, Chief Executive of NUPRC
stated these in Yenagoa while inaugurating the Body of Neutrals (BON) of the Upstream Alternative Dispute Resolution Centre.

BON is an alternative dispute resolution panel to adjudicate on disputes emanating from the implementation of the Petroleum Industry Act.

The 47 member BON, composed of legal practitioners with extensive experience in arbitration, retired judges, oil industry experts is chaired by a retired Justice Nayai Aganba, High Court Judge in Bayelsa.

Administering the oath of office, Komolafe urged the panel members to be above board and fair in their handling of disputes that would be brought before them for adjudication.

Komolafe noted that the oil sector regulator was overwhelmed by a litany of disputes hindering development of oil communities which could snowball into conflicts that could hamper oil production.

“This momentous occasion marks a significant milestone in our role as the Regulator of the Nigerian Upstream Petroleum Sector.

“It is in our quest to provide quality, efficient, and cost-effective dispute resolution services within the upstream oil and gas industry.

“The establishment of the Body of Neutrals is not only the culmination of extensive planning and dedication but also the commencement of a transformative chapter in the realm of dispute resolution,” Komolafe said.

He said that NUPRC had set up the Alternative Dispute Resolution Centre (ADRC) in Yenagoa to provide a cost effective and speedy resolution of conflicts between oil firms and their hosts.

He regretted that regular litigation was adversoral, slow, rigorous and costly whereas the ADRC offers resolutions to conflicts by arbitration and mediation.

Komolafe said that it was a paradox that after inaugurated 130 Host Community Development Trusts and funding them to the tune of N200 billion, development was hampered by disputes.

Speaking at the event, Gov Douye Diri of Bayelsa applauded NUPRC for establishing the Upstream Alternative Dispute Resolution Centre in Yenagoa, Bayelsa capital.

Diri said that the establishment of the centre in Bayelsa where oil was first struck in commercial quantities at Otuabagi within Oloi iri District was an indication that peace has returned to Niger Delta.

He therefore renewed the call for oil firms to relocate their headquarters to the operational base in the Niger Delta region.

Diri noted that the exclusion of states and local governments from the PIA was a recipe for crisis and called for its review to give roles to the two tiers of government.

He also demanded an upward review of the host community development fund from the current three per cent to at least 10 per cent to engender lasting peace for oil exploration to thrive.