The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that it may revoke permits awarded to investors under the Nigerian Gas Flare Commercialisation Programme (NGFCP) if they fail to demonstrate significant progress in utilising the sites.
The Commission Chief Executive, Oritsemeyiwa Eyesan, disclosed this during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja on Tuesday.
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Mrs Eyesan, according to a statement issued by the commission on Wednesday, presented an update on the implementation of the NGFCP during the meeting.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” she said.
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“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary.”
27 flare sites awarded
Mrs Eyesan said the NGFCP had continued to make significant progress despite initial resistance from some oil and gas operators.
She said 43 flare gas sites were originally identified for award; 27 have been successfully awarded so far, and implementation efforts are ongoing.
The Nigerian Gas Flare Commercialisation Programme was launched by the Federal Government in 2016 to end routine gas flaring at oil fields by enabling third-party investors to commercialise gas that would otherwise be flared.
The latest warning comes amid growing concerns over the continued gas flaring by oil companies and its impact on oil-producing communities.
PREMIUM TIMES investigations have documented the environmental and livelihood impacts of persistent gas leaks and flaring in oil-producing communities, as well as cases of oil companies allegedly violating gas-flaring regulations without facing effective sanctions.
Nigeria has over 215 TCF of proven gas reserves
Mrs Eyesan also said Nigeria currently has more than 215 trillion cubic feet (TCF) of proven natural gas reserves, with an estimated total reserve base of about 600 TCF.
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“These resources provide a strong foundation for power generation, industrialisation, exports and broader economic development,” she said.
She said the effective commercialisation of the country’s gas resources would help Nigeria derive greater economic value while reducing environmental pollution associated with gas flaring.
On host community development, the NUPRC chief said the Petroleum Industry Act (PIA) introduced the Host Community Development Trust framework to address longstanding concerns in petroleum-producing communities and promote sustainable development.
She said available data indicated that the implementation of the trusts had contributed to reductions in oil theft and oil spills while improving relationships between operators and host communities.
“Today, 173 Host Community Development Trusts have been incorporated, 147 have been funded, over 1,001 projects are currently ongoing, while more than 200 projects have been successfully commissioned across host communities,” she said.
On his part, Mr Ekpo called for deliberate and aggressive implementation of Nigeria’s gas commercialisation programme to enable the country to meet its 2030 target of eliminating routine gas flaring.
“The core objective is to add value to our gas resources by converting them into critical products and services. We must move away from environmental pollution and toward productive resource utilisation,” the minister said.
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