NUPRC Threatens to Revoke Flare Gas Awards Over Slow Progress

By Adedapo Adesanya

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned beneficiaries of Nigeria’s gas flare commercialisation programme that their awards could be revoked if they fail to demonstrate sufficient progress in utilising the awarded flare gas sites.

The commission disclosed that of the 43 flare gas sites initially identified for award under the Nigerian Gas Flare Commercialisation Programme, 27 have so far been successfully awarded, with implementation ongoing.

The NUPRC’s chief executive, Mrs Oritsemeyiwa Eyesan, disclosed this during a working visit to the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, in Abuja.

Providing an update on the implementation of the programme, Mrs Eyesan said awardees would be subjected to performance evaluations to determine whether they were making adequate progress.

“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Mrs Eyesan said.

“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary,” she added.

Mrs Eyesan said that despite initial resistance from some operators, the NGFCP had continued to make progress, with 27 of the 43 identified flare gas sites now awarded and implementation ongoing.

She said Nigeria currently had more than 215 trillion cubic feet (TCF) of proven gas reserves, with an estimated total reserve base of about 600 TCF.

According to her, the country’s gas resources provide a strong foundation for power generation, industrialisation, exports and broader economic development.

On host community development, Mrs Eyesan said the Petroleum Industry Act introduced the Host Community Development Trust framework to address longstanding concerns in oil-producing communities and ensure that petroleum resources were deployed to support sustainable development.

She said available data showed that the implementation of the trusts had contributed to reductions in oil theft and oil spills while improving relationships between operators and host communities.

Mrs Eyesan disclosed that 173 Host Community Development Trusts had been incorporated and 147 funded, with more than 1,001 projects currently ongoing and over 200 projects successfully commissioned across host communities.

In his remarks, Mr Ekpo called for more deliberate and aggressive implementation of Nigeria’s gas commercialisation programme to ensure that the country meets its 2030 target of ending 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.