Awardees of gas flare sites could lose permits if not utilised, NUPRC says
Orisemeke Benjamin
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says awardees of flare gas sites could see their permits revoked if they do not utilize them.
The Commission Chief Executive, Commission Chief Executive, NUPRC, Mrs. Oritsemeyiwa Eyesan, stated this during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon Ekperikpe Ekpo, Tuesday in Abuja.
Speaking at the meeting, the CCE presented an update on the Nigerian Gas Flare Commercialization Programme (NGFCP)
“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 her, despite initial resistance from some operators, the NGFCP has continued to record significant progress.
She noted that 43 flare gas sites were originally identified for award.
So far, 27 sites have been successfully awarded, and implementation efforts are ongoing, Eyesan said.
The NUPRC noted that Nigeria currently has over 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 introduced the Host Community Development Trust framework to address longstanding concerns in host communities and ensure that petroleum resources are utilised for sustainable development.
According to her, available data indicates that the implementation of the trusts has resulted in significant reductions in oil theft and oil spillage while fostering more harmonious relationships between operators and host communities.
She further disclosed that significant progress has been recorded since the implementation 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, Rt. Hon Ekpo called for a deliberate and aggressive implementation of Nigeria’s gas commercialization programme to ensure the country achieves its 2030 target of eliminating routine gas flare.
“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 utilization,” the minister added.
