By: Goodluck E. Adubazi, Abuja.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that awardees of gas flare commercialisation sites risk losing their permits if they fail to make significant progress in utilising the sites within the stipulated timeframe.
The Commission Chief Executive (CCE), NUPRC, Mrs. Oritsemeyiwa Eyesan, gave the warning during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in Abuja.
Eyesan, who presented an update on the Nigerian Gas Flare Commercialisation Programme (NGFCP), said the Commission evaluates the performance of awardees one year after the award has been granted.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.
She warned that where an awardee fails to demonstrate sufficient progress, the Commission would take appropriate regulatory measures, including the possible revocation of the award.
“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary,” she added.
Eyesan said that despite initial resistance from some operators, the NGFCP had continued to record significant progress.
According to her, 43 flare gas sites were initially identified for award, out of which 27 have so far been successfully awarded, with implementation efforts ongoing across the sites.
The NUPRC boss also highlighted Nigeria’s enormous gas potential, noting that the country currently has over 215 trillion cubic feet (TCF) of proven gas reserves and an estimated total reserve base of about 600 TCF.
She said the resources provided a strong foundation for power generation, industrialisation, exports and broader economic development.
“These resources provide a strong foundation for power generation, industrialisation, exports and broader economic development,” she said.
On host community development, Eyesan said the Petroleum Industry Act (PIA) introduced the Host Community Development Trust framework to address longstanding concerns in oil-producing communities and ensure that petroleum resources contribute to sustainable development.
She said available data showed that the implementation of the trusts had contributed to significant reductions in oil theft and oil spillage, while also fostering more harmonious relationships between petroleum operators and their host communities.
Eyesan disclosed that substantial progress had been recorded since the commencement of the initiative.
“To date, 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.
In his remarks, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, called for deliberate and aggressive implementation of Nigeria’s gas commercialisation programme to enable the country achieve its target of eliminating routine gas flaring by 2030.
Ekpo stressed that Nigeria must prioritise the conversion of its vast gas resources into valuable products and services capable of driving economic growth and industrial development.
“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.
