Non-utilisation: Flare Gas Awardees Risk Losing Permits — NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that operators awarded flare gas sites risk having their permits revoked if they fail to utilise them.

The NUPRC chief executive, Oritsemeyiwa Eyesan, gave the warning  during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in Abuja, where she briefed him on the Nigerian Gas Flare Commercialisation Programme (NGFCP).

She explained that the Commission evaluates awardees a year after receiving their permits to assess progress, and would not hesitate to sanction defaulters.

According to her, where progress is found to be insufficient, the Commission will take appropriate regulatory action, including revoking the award where necessary.

Eyesan said that despite initial resistance from some operators, the programme had continued to record significant progress. She disclosed that of the 43 flare gas sites originally identified, 27 have so far been awarded, with implementation ongoing on the rest.

She added that Nigeria currently has over 215 trillion cubic feet (TCF) of proven gas reserves, with an estimated total reserve base of about 600 TCF, resources she said provide a strong foundation for power generation, industrialisation, exports and broader economic development.

On host community development, the NUPRC boss said the Petroleum Industry Act introduced the Host Community Development Trust framework to address longstanding grievances in oil-producing communities and ensure petroleum resources translate into sustainable development.

She said available data showed that the trusts had led to a significant drop in oil theft and pipeline vandalism, while improving relations between oil companies and host communities.

Giving further details, Eyesan said 173 Host Community Development Trusts have so far been incorporated, 147 of which have been funded. She added that over 1,001 projects are currently ongoing, while more than 200 have been completed and commissioned across host communities.

Speaking at the event, Ekpo called for a more deliberate and aggressive implementation of the gas commercialization programme, to enable Nigeria meet its 2030 target of ending routine gas flaring.

He said the goal was to add value to the country’s gas resources by converting them into critical products and services, stressing the need to move away from environmental pollution toward productive resource utilisation.