By Jelili Gbadamosi
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has threatened to revoke gas flare site awards granted to operators who fail to make sufficient progress under the Nigerian Gas Flare Commercialisation Programme (NGFCP).
The commission said operators would be assessed one year after receiving their awards to determine whether they had taken meaningful steps towards utilising the flare sites.
NUPRC Chief Executive, Oritsemeyiwa Eyesan, disclosed this during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
Eyesan warned that operators who fail to demonstrate adequate progress could face regulatory sanctions, including the withdrawal of their awards.
“Where there is insufficient progress, the commission will take appropriate regulatory action, including revocation of the award where necessary,” she said.
She disclosed that 27 out of the 43 identified gas flare sites under the programme had so far been awarded, adding that implementation was ongoing despite initial resistance from some operators.
The NUPRC chief also highlighted Nigeria’s vast gas potential, stating that the country has more than 215 trillion cubic feet (TCF) of proven gas reserves and an estimated total reserve base of about 600 TCF.
According to her, effective utilisation of the resource could support electricity generation, industrial development and gas exports.
On host communities, Eyesan said the Host Community Development Trust framework established under the Petroleum Industry Act had contributed to improved relations between oil producers and their host communities, as well as efforts to reduce oil theft and spills.
She said 173 Host Community Development Trusts had been incorporated, with 147 already funded. More than 1,001 projects are currently ongoing, while over 200 projects have been completed and commissioned.
Earlier, Minister Ekpo urged stakeholders to accelerate the implementation of gas commercialisation initiatives as Nigeria works towards ending routine gas flaring by 2030.
He said the country must shift from allowing gas flaring to contribute to environmental pollution to harnessing the resource for productive economic activities.
