The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that companies awarded flare gas sites risk losing their permits if they fail to utilise the sites.
Oritsemeyiwa Eyesan, commission chief executive (CCE) of the NUPRC, issued the warning during a working visit to Ekperikpe Ekpo, minister of state for petroleum resources (gas), in Abuja on Tuesday.
Eyesan also presented an update on the Nigerian gas flare commercialisation programme (NGFCP) at the meeting.
She said the commission evaluates flare gas awardees one year after an award is granted to determine whether sufficient progress has been made.
“One year after an award has been granted, the commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.
“Where there is insufficient progress, the commission will take appropriate regulatory action, including revocation of the award where necessary,” she added.
According to the NUPRC boss, the NGFCP has continued to make significant progress despite initial resistance from some operators.
She said 43 flare gas sites were originally identified for award, with 27 sites so far successfully awarded and implementation ongoing.
Eyesan said Nigeria currently has more than 215 trillion cubic feet (TCF) of proven gas reserves and an estimated total reserve base of about 600 TCF.
“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 are utilised for sustainable development.
She said available data showed that the implementation of the trusts had contributed to significant reductions in oil theft and oil spills while fostering better relationships between operators and host communities.
Eyesan said 173 host community development trusts had so far been incorporated, with 147 funded.
She added that more than 1,001 projects were ongoing, while over 200 projects had been commissioned across host communities.
In his remarks, 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 towards productive resource utilisation,” the minister said.
